In the News
Our Class-Action System is Unconstitutional
“There's a hidden tax imposed on companies that do business in the United States that hinders their international competitiveness and eventually filters down to consumers. This ‘tax’ takes the form of certain class-action attorneys who, like a roving shadow, look for any opportunity to claim that a business has done something wrong -- for example, provided misleading consumer advertising -- without concern for whether any member of the public actually thinks he or she was harmed. To avoid high legal fees and litigation distractions, corporations very often settle, paying out millions of dollars.” The Wall Street Journal, August 6, 2008. READ MORE>>
Challenging Spitzerism at the Polls
“Take one part ego, one part ambition and one part lawyer, mix it with an office that has few restraints on power, and you'll end up with the worst sort of state attorney general. Take Dan Greear, and you'll have a man at the front of a nascent electoral movement to change the formula. Mr. Greear is the 40-year-old Republican lawyer working to unseat West Virginia's entrenched top prosecutor, Darrell McGraw. His quest has become a case study in the opportunities, and pitfalls, of an upstart reformer challenging an incumbent attorney general who, like New York’s Eliot Spitzer, has cemented his position through populism and political patronage. It's also an insight into a new wave of reformist candidates across the country. As state attorneys general have become more brazen with their power, and as outside groups have started shining a light on their backroom practices, voters have become uneasy.” The Wall Street Journal, August 1, 2008. READ MORE>>
The Trial Bar Goes on the Offensive
“Judging by recent headlines, the trial-lawyer lobby in Washington should be deep in bunkers, fighting a defensive action. High-profile class-action plaintiffs’ lawyers such as Dickie Scruggs, Bill Lerach, and Melvyn Weiss all have been convicted for various criminal offenses, and a federal judge unearthed major fraud among claimants in asbestosis lawsuits. But the U.S. Chamber of Commerce has found the bunkers empty and the trial bar more aggressive than ever. The Chamber sees the trial bar as having been reinvigorated. According to the Chamber’s Institute for Legal Reform (ILR), special provisions that would benefit plaintiffs’ attorneys are proliferating in Congress." The Baltimore Examiner, July 27, 2008. READ MORE>>
Recent Sick of Lawsuits Activities
Alabama Voters Against Lawsuit Abuse (AVALA) held a news conference on July 24 to publicly call on Attorney General Troy King to be transparent when hiring outside counsel. WAKA-TV, the CBS affiliate in Montgomery, covered the event, which was also attended by the Associated Press, two television stations and one radio station. Several other out-of-town broadcast outlets also asked for AVALA's statement and a broadcast feed of the event.
Houston Citizens Against Lawsuit Abuse (Houston CALA) partnered with the Houston Realty Breakfast Club to co-sponsor a judicial candidates' gathering on July 31. The 2008 Judicial Candidates' Forum featured sitting judges from every local district and most of their opponents. Two justices from the Texas Supreme Court who are up for reelection in November, Dale Wainwright and Phil Johnson, also attended. Houston CALA Board Member Norm Adams addressed the group with a speech about lawsuit abuse and the importance of judicial elections. In addition to Adams' speech, Houston CALA also distributed voter education materials.
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The Stats
42%: The expected increase oflawsuits seeking class-action status in 2008, compared to 2007. NERA Economic Consulting, 2008.
$3,200: The hidden "tort tax" lawsuits cost a family of four annually. U.S. Chamber Institute for Legal Reform, 2008.
8: The factor by which tort costs have outpaced population growth since 1950 (adjusted for inflation). Tillinghast Towers Perrin's Update on U.S. Tort Cost Trends, December 2007.
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