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Introduction
Lawsuit abuse – the deliberate filing of frivolous litigation –
has made a travesty of the American civil justice system. It’s
not called “Jackpot Justice” and the “Litigation Lottery” for
nothing: plaintiffs’ lawyers file lawsuits for the sole purpose
of obtaining large settlements or judgments from defendants
whose actions, products or services have not caused any real
harm to defendants; and in many cases, plaintiffs receive none
or only a negligible portion of the actual award, while
plaintiffs’ counsel are paid millions, and in some cases,
billions of dollars even though they frequently expend very
little effort or expense on the case.
Fast Facts
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“People are increasingly using lawsuits as a means to pass
blame onto someone else. Our civil justice system should not
be a player in the ‘Blame Game’. Instead, our courts should
be used to provide justice and fair compensation for those
who were truly wronged – not for those who simply do not
want to accept responsibility for their actions or as a
means to get rich quick or to get something for nothing”
(California
Citizens Against Lawsuit Abuse website (www.cala.com)
, “Take Responsibility – Stop Lawsuit Abuse”)
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“Our runaway tort system is a genuine problem that is
causing economic harm, and far more important, is distorting
the cause of Justice. American politics typically responds
to such problems, but in this case the power of the tort bar
(personal injury lawyers) centered on the Democratic
Senators has blocked even the most modest fixes.”
(California
Citizens Against Lawsuit Abuse website (www.cala.com)
quoting The Wall Street Journal, July 8, 2004)
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“In a typical year (2002) more than 16 million lawsuits are
filed in state courts – that’s one about every 2 seconds”.
(CFA,
Fast Facts
on the Litigation Lottery, 2005, p. 2)
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At least 6,000 of the 8,000 plus lawsuits filed against the drug
company, Bayer, when it withdrew its widely-used cholesterol
drug from the market, were filed by plaintiffs who did not
suffer any side effects from the medication.
(www.sickoflawsuits.org,
citing Scott
Gotlieb, M.D., The New York Times, February 26, 2003)
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“The top 10 jury awards in 2002 totaled $32.7 billion; in
1999 the top 10 awards totaled $9 billion”.
(Institute
for Legal Reform website,
www.instituteforlegalreform.com, “Facts & Figures”,
citing National Law Journal, 2003)
Unwarranted Claims
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The prospect of striking it rich, often
with very little effort, by filing frivolous lawsuits to
gain multi-million dollar fees motivates some
plaintiffs’ attorney to assault one company after
another with little or no regard for the merits of the
claims.
(Comments by the editor.)
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Frivolous claims allege some type of harm
when in fact little or none has occurred. They require
minimal time, effort and expense to file, yet hold out
the possibility of significant rewards, a substantial
portion of which will be paid to the plaintiffs’
lawyers. Although frivolous claims have no real basis in
fact or law, defendants often settle them – a kind of
“legal extortion” – because it costs less to settle
these claims than to defend them.
(KRC:
Schwartz, “Why the Lawsuit Reduction Act …”)
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“The threat of a lawsuit and the related
media damage can present a no-win situation for
companies: either settle a false claim to end the bad
publicity or fight on the facts but get tarnished in
public anyway. Often the damage to a company's
reputation and sales exceeds the legal risk it wants to
avoid”. (KRC:
Hantler, “Minimizing the Damage from Lawsuits,
PRWeek”, June 27, 2005)
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In 1999, the court
ruled that those who may have been exposed to a
dangerous substance can get a cash award even if they
have no symptoms of illness.
(Bower v. Westinghouse, 522 S.E. 2d 424 (W. Va.
1999))
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Yet West Virginia’s
speculative law allows thousands of plaintiffs to sue
for future injuries and receive awards that can then be
used to buy cars, vacation getaways or anything else
they choose. A $381 million verdict including medical
monitoring claims against DuPont is currently on appeal
to the state’s high court.
(KRC:
JH, Judicial Hellholes 2008/2009, page 3)
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Summing up: Patron drank before going to the restaurant,
likely driving drunk to get there; the restaurant did
not sell alcohol to the driver. So, why is the
restaurant subject to liability for the drunk driving
accident? What does this say for the notion of personal
responsibility in some areas of New Jersey?
(Assoc.
Press, Court Expands Bar Owners’ Responsibility,
The Record (N.J.), Mar. 20, 2008, at
http://www.northjersey.com/business/news/Court_expands_bar_owners_responsibility.html.)
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Reason for optimism, however, may be found in a recent
ruling of the Texas Supreme Court that should stop
personal injury lawyers from importing claims from all
over the country to friendly Texas courts. On December
5, 2008, the state’s high court ruled in In re
General Electric Co. that the plaintiff, who had
lived and worked in Maine all of his life, could not sue
for his asbestos exposure in Harris County, which
handles Texas’s asbestos litigation.
(KRC:
JH, Watch List, page 21)
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Why Do Lawyers Pursue
Unwarranted Litigation?
For the Money!
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A class action was filed against a
local Hooter’s restaurant chain in Georgia for violating a
federal law when it purchased advertising space in 6 unsolicited
“blast faxes” sent to over a thousand people. An $11.9 million
verdict was returned against the restaurant which then declared
bankruptcy. Plaintiff’s counsel was awarded $4 million in legal
fees.
(KRC:
Olson, The Rule of Lawyers, pp.87)
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In another egregious example, the
members of a class action lawsuit against Toshiba sued over
obscure and hard-to-trigger problems in laptop computers and
collected between $100 and $443 each in cash and coupons from
the company, while the attorneys who represented them collected
$148 million in fees.
(KRC:
Olson, The Rule of Lawyers, pp. 89-91)
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A
South Florida attorney, Curtis Wolfe, has started a new Web
site, “WhoCanISue.com.” But have no fear. Despite its name,
Wolfe claims his site is only an attorney referral service, not
a means by which to identify potential defendants for litigious
individuals in plaintiff-biased South Florida.
(Bridget Carey, Lawsuits Made Simple? Website Makes the Claim,
Miami Herald, Aug. 7 2008 C1)
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