During the first half of 2005, three
states adopted substantive civil justice reform; three states, incidentally,
that were at the bottom end of every national study analyzing business and legal
climates (South Carolina, Georgia and Missouri). Two additional states, Oklahoma
and Florida, are on the verge of much-needed reforms.
Seems easy, right? Get your lawmakers
on board for reform, mix in support from the business community, make the case
to the public and, voila, you've got tort reform.
The myth that legal reform will come
easily is as dangerous to the forward progress of true legal reform as the
twisted playbook utilized by the trial lawyers' bar over the past two decades.
It's great to be enthusiastic about
success. Hundreds of organizations representing millions of consumers, workers,
employers, patients and professionals are promoting the idea that a level
playing field in the civil justice arena is both needed and wanted. As a result,
state lawmakers are sponsoring and supporting new reform laws. State-level legal
reform seems to be within reach.
So what's so dangerous about a
strategy that seems to be working? In a word, complacency. The reason that
Georgia, South Carolina and Missouri enacted sweeping new legal reforms is that
the constituencies who supported reform stepped up and made their voices heard
led by business.
What you don't hear in the pep
rallies and news reports is that these reforms could and should have been
enacted years ago. The missing ingredient was the business community fulfilling
its responsibility to step forward to support lawmakers and their reform
proposals. In this vacuum, the trial bar pursued a campaign of intimidation
against these legislators that went unchallenged.
Most lawmakers flee at the thought of
public scorn. The trial lawyers' bar, ever vigilant to protect its turf, spends
millions of dollars each year attacking lawmakers who introduce tort reform
legislation and supporting opponents of reform. The attacks are brutal and
successful, resulting in the loss of many pro-reform candidates across the
nation.
If lawmakers are risk-averse, then
many business leaders are risk-intolerant. For a number of reasons, some
justified and many others merely symptoms of fear, some corporate leaders have
decided that it is in my best interest and, therefore, in the best interest of
my company to stay quiet.
A Fortune 500 CEO recently confirmed
this attitude. I asked him whether his corporation is currently in court,
knowing full well that he was deep into multi-state class-action litigation. His
answer was revealing. "We simply can't afford another class-action lawsuit," he
said. "Our shareholders will run for the hills." My response to him was simple:
"Then do something to make it stop." As representatives of the world's largest
employers, we have an obligation to do whatever we can to protect jobs and
investors and to promote the free marketplace. Reforming our legal system to
make it fair, predictable and more transparent is a great place to start.
The trial bar plays for keeps. As
vigorous representatives for their industry, trial lawyers are willing to put
tremendous resources into the struggle they see as vital to protecting their
livelihoods. But they create unwarranted fear among the public by promoting the
saddest and most extreme examples of wrongdoing the child injured by the
drunk physician, the widow whose husband was killed by exposure to worksite
toxic materials to prove the point that lawyers should be able to ply their
trade without limits.
It's hard work to argue publicly
against trial lawyers, who set themselves up as the white knights of justice.
It's hard, but not impossible.
Coordinating efforts among various
groups is key, as is the determination of CEOs to speak up in public forums,
including media, public events, and at symposia.
Legal reform success depends on
several factors. Multiple constituencies representing millions of employees,
consumers, and professionals are important. But the indispensable prerequisite
to success is the public support of recognized business leaders. By providing
public backing for lawmakers whose re-elections are at risk without this
support, business leaders will make the crucial difference in getting and
keeping legislative support for legal reform.