Can Trial Lawyers Change Their Spots?

By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce July 25, 2006

 

Recognizing that they are about as popular as ants at a picnic, the American Trial Lawyers Association voted recently to change its name to the American Association for Justice. A wag at The Washington Post quipped that the runner-up name was the "Association for Apple Pie, Motherhood, and the American Way." While it's amusing to poke fun at ATLA's attempts to whitewash the harmful actions by some of its members by changing its name, the underlying problem remains the same - a handful of trial lawyers are damaging America's economy, especially small businesses.

 

Lawsuit abuse ranks among the costliest expenses for business; for small businesses alone, the tort system costs $88 billion per year. The rising number of abusive class action lawsuits filed in state courts has increased prices for consumer goods and services, raised insurance premiums, discouraged innovation, and lowered business earnings. Often, small businesses -- such as local suppliers, agents, retailers, and dealers -- are named as defendants in class action suits so trial lawyers can have their cases heard in plaintiff-friendly courts.

 

The Chamber is leading the fight to make our justice system simpler, faster, and fairer. Our Institute for Legal Reform successfully won passage last year of the Class Action Fairness Act, which helps prevent venue shopping by moving many state class actions to more impartial federal courts. It has spurred significant legal reform at the state level by shining a national spotlight on trouble states through its annual state rankings of legal fairness and by exerting other forms of pressure. And it has helped educate voters in numerous state elections critical to business.

 

While much progress has been made, there is still more to be done to restore fairness to our legal system. Instead of making cosmetic changes to tweak their poor image, the trial lawyers association should instead focus on curbing the harmful behavior of some its members. If they don't, you can bet we will. To learn more about ways you can help, visit: http://www.instituteforlegalreform.com/ .