A Call for Legal Reform in Madison County, IL

Edwardsville, Illinois
Thursday, June 5, 9:00 a.m.

Thank you, Doug (Whitley), and good morning everyone.

You might be wondering what brought the U.S. Chamber of Commerce to Edwardsville today and why many of my colleagues have interrupted their regular travel plans to join me at this press conference.

We are here to shine the light on—and to call for a stop to—the litigation madness in Madison County, Illinois.

Today's event reflects a passionate and unyielding commitment by the U.S. Chamber and its Institute for Legal Reform to restore fairness and balance to our civil justice system in those states and counties that have made a mockery of justice, and in the process have destroyed companies, eliminated jobs, and damaged the economy.

The United States Chamber of Commerce, as the principal voice of the American business community, has a solemn obligation to speak out on behalf of its members—a membership representing more than three million businesses and professional organizations of every size, sector, and region in the country, including nearly 2,200 members in Illinois.

A handful of states like Mississippi and West Virginia have become toxic breeding grounds for abusive lawsuits— lawsuits that have been sucking vitality and innovation out of our economy, our health care system, and our way of life.

Our presence in Madison County, Illinois, illustrates that even courts in a small, rural county in the American heartland can wreak havoc on companies, shareholders, workers, and consumers.

The courts of Madison County – principally the Circuit Court of Madison County and the Illinois Fifth District Appellate Court – have earned a unique reputation that sets them apart from the crowd. Madison County courts have been nicknamed:

o "the lawsuit capital of the world,"
o "a plaintiff's paradise,"
o "the jackpot jurisdiction,"
o "a tort heaven," and
o "a magnet jurisdiction for the personal injury plaintiffs' bar."

In my opinion, Madison County is the epicenter of class action filings in America. And how can it not be, considering the staggering 1,850 percent increase in class action filings here between 1998 and 2001?

Madison County has more class action filings per capita than any other county in America. In 2002, there were 77 class actions filed in Madison County, but that figure may soon be surpassed.

According to an article in last week's Belleville News Democrat, there have already been 39 class actions filed in Madison County this year—28 of which were filed by one lawyer, Paul Weiss of the Chicago law firm of Freed & Weiss. At this rate, there will be 94 class actions filed for all of 2003—a 22% increase from last year.

And Madison County not only wins the first place prize for the number of class actions filed, but it has recently set the record for the largest dollar amount of a class action award.

In March of this year, the Third Judicial Circuit Court ruled on a class action case that resulted in an astounding $10.1 billion verdict against the Philip Morris tobacco company. Lawyers representing the plaintiffs earned $1.8 billion dollars for their efforts.

You don't need a class action to hit paydirt in Madison County. In fact, you don't even need to have anything to do with Madison County to have a trial here.

U.S. Steel found this out the hard way. A few months ago, a Madison County jury awarded $50 million in compensatory damages and $200 million in punitive damages to an employee who tragically became ill because of asbestos exposure.

Putting aside the heartache of this man's injury, this trial had no business being in Madison County because the plaintiff did not live—and had never lived—in Madison County; the injury occurred at a plant in Gary, Indiana; and U.S. Steel is based in Pittsburgh, Pennsylvania.

Even though this case had no logical connection to Madison County, the plaintiffs' lawyers knew the courts here would roll out the symbolic welcome mat bearing the words "come one, come all!"

And they knew that Madison County justice would yield a result not obtainable in Gary, Indiana, Pittsburgh, or any other jurisdiction, for that matter. In this particular case, the result was the largest verdict ever awarded to a single plaintiff in the long history of asbestos litigation.

Speaking of asbestos litigation, in the last two years the asbestos docket in Madison County has exploded, ignited by hundreds of claims brought by people who have never even heard of Madison County.

Asbestos-related filings in 2001 (about 900) are more than double the number filed in 2000 (411).

The glut of out-of-state filings in Madison County have pushed the court docket to the seams. On just one day – November 18, 2002 – there were in excess of 100 asbestos cases set for trial.

Some defendants were named in all 100 of those cases. It is humanly impossible for defendants to prepare for so many cases at once, and no judge could possibly have undertaken such a caseload.

But the judge didn't have to worry about that because it could be confidently assumed that none of the scores of defendants who had been named in any of those cases would risk going to trial – and none did.

Despite receiving warnings by the Illinois Supreme Court to move to a more appropriate court any case that has no connection to a particular jurisdiction, the Madison County trial court, like a teenager ignoring its parent, turned a deaf ear to a directive of the state's highest court and chose instead to create its own exceptions for asbestos cases.

Touting its "specialized administrative plan for handling asbestos litigation," Madison County has welcomed a flood of out-of-state cases that is making it the leading venue in the United States for the most serious of the asbestos cases.

That means any effort to transfer an asbestos case will likely fail. Defendants who find themselves in Madison County courts are like a bug caught in a spider web, except that the bug has a greater chance to escape.

Surely the courts of Madison County have become an embarrassment to this great state—a kind of black sheep of the Illinois court system. That kind of reputation hurts the cause of justice and the pursuit of economic development.

Madison County may be a good place for the litigation industry, but such an environment is not very inviting to companies looking to conduct business here. In fact, the county could very well play a key role in scaring business away from the entire State of Illinois.

The Chamber's recent Harris ranking of state liability systems shows that Illinois dropped from 34th place to 38th place, and most observers attribute this descent to the continued lawsuit abuse taking place in Madison County courts.

The 928 corporate general counsels and senior litigators interviewed for this study acknowledge that companies are increasingly taking into account a state's legal climate when making decisions about where to locate operations.

Ladies and gentlemen, Illinois's economy can ill afford further declines. The state has lost 46,000 jobs in the last year, and an unfavorable legal system will only help repel, not attract, economic development and job growth.

Illinois needs to provide positive incentives for investment and business. The citizens of Illinois and Madison County deserve better.

So, what's the solution to the Madison County problem? A good start would be for the courts of Madison County to get back to the basics of jurisprudence.

In my hand [HOLD UP MANIFESTO AND WAVE AROUND] is a document we are unveiling today called "The Madison County Manifesto," a simple, yet succinct set of principles that we invite the courts of Madison County, and indeed all courts everywhere, to willingly embrace and consistently practice.

In the interest of time, I won't read each of these propositions, but I will say that we are confident that adherence to these ten precepts will help restore fairness and justice to the courts of Madison County.

And to make sure the public knows about this Manifesto, we have taken out ads in several local and statewide newspapers, as well as one Washington, DC, publication—The Hill—widely read by Members of Congress.

Ladies and gentlemen, the liability lawsuit epidemic in Madison County is not only an economic liability to the state of Illinois, but to companies from around the world.

The good news is that there is a cure—a remedy that lies in the hands of state officials from all branches of government.

The Illinois Supreme Court has the power to use its existing authority to enforce compliance with these principles, and if necessary, can use its rulemaking ability to create new reforms.

We have faith in the high court's wisdom and ability to take appropriate action to bring the courts of Madison County in line.

Certainly the Illinois General Assembly is aware of the predicament Madison County courts have put the state in, but it missed a golden opportunity to pass several key legal reform bills this session. Ed Murnane will speak in a few minutes about how state senators and representatives can help solve the problem.

The Governor should use his own powers of persuasion to convince the plaintiffs' trial bar to do the right thing and to stop standing in the way of legal reform in the courts and in the legislature.

And most importantly, the people of Illinois need to speak up and urge their leaders to work hard to bring about real and meaningful change that will improve their state's civil justice system and economy.

This county, this courthouse, this tax-supported government belong to the people. If and when these institutions no longer reflect the integrity and values of its people, then it's up to the people to use their voting rights to force change.

The U.S. Chamber is ready, willing, and able to do whatever is necessary to keep this issue before the public until justice returns to Madison County.

It has been said that "sunlight is the best disinfectant," and no one should doubt our resolve to keep the bright light of public scrutiny on any court or judge who allows lawsuit abuse to persist.

The U.S. Chamber of Commerce has a very successful track record when it comes to educating the public at election time, and we intend to continue our public awareness efforts wherever the need may be.

The U.S. Chamber of Commerce is committed to the fight for legal reform. We will not shrink from our duty to protect our members, and we will do everything in our power to help stop the litigation madness in Madison County.

Thank you.