New Series for Corporate Directors:
"Declaring War On Lawsuit Abuse"
An Interview With Bernie Marcus,
co-founder, The Home Depot
and Steve Hantler, Chairman,
Center for America
Directorship magazine, to which 15,000
corporate directors subscribe, is publishing a series of articles
about the need to end lawsuit abuse and achieve legal reform at the
state level.
The
editors of Directorship believe that corporate directors
should know more about the huge costs of lawsuit abuse and the trial
bar's relentless effort to game the legal system to win huge payouts
from companies. Some economists believe that the all-inclusive cost
of the tort system is actually much higher than the $300 billion
cost reported by an industry study.
The first article in this series, an interview
featuring Bernie Marcus, the co-founder of Home Depot, and Steve
Hantler, CFA Chairman, is published in this month's edition of
Directorship.
As Bernie Marcus points out in the interview, "The good news is that more businesses are
beginning to recognize that the litigation epidemic is a terrible
drag on the economy and their business. If you are a director on a
board, I would like you, at the next board meeting, to ask the CEO,
after he or she goes through all the numbers, including profits,
return on investment and all that, 'What does litigation cost us
every year?' It’s an enormous number for large and small companies,
but it’s not on the balance sheet."
Marcus continues, "The ultimate weapon is bringing together all
the business interests to fight a concerted fight. Some heroic
companies are fighting back, particularly in asbestos. What we’re
saying to everybody is that it’s time to get involved in this fight."
"What we have started [in the Center for America] is a state-by-state
program," Marcus said. "We’ve been able to bring together a coalition of about 60
national and state organizations, including the National Association
of Manufacturers, the Council of State Chambers, the Council of
State Manufacturing Organizations, the American Tort Reform
Association, . . . and many other trade and tort
reform groups. There is a common enemy out there. Plaintiffs’
lawyers are well-organized. They help elect activist judges at the
state level. Most companies don’t want to get involved because it
doesn’t look right. It may not look right but it’s having a dramatic
impact on their business."
When asked why he believes corporate directors have a
stake in legal reform, Steve Hantler said, "I spoke with the CEO of
a major insurance company who told me that because of certain tort
reforms enacted in the state of Ohio, he could release $50 million
to $100 million from reserves to income. Not only will tort reform
make the system fairer, it will also allow companies to reserve the
proper amount. If tort reform succeeds, it will clearly affect
the bottom line."
Read Directorship Article With Marcus and Hantler
Read November Edition of Directorship Magazine
Click Here to Watch a
Short Video Interview with Bernie Marcus and Steve Hantler
For more information about Center for America:
Dan Pero, President
Center for America
600 South Walnut
Lansing, MI 48933
517-371-7276
DPeroAJP@aol.com
