The cost of lawsuit abuse

Richard Weekley:

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Unless you have been a party to one of the lawsuits in question, you might think that this wave of legal malfeasance is a series of isolated, unrelated incidents that do not affect you. If so, you would be wrong.

For example, law firms dedicated just to representing asbestos plaintiffs have bankrupted 70 American companies, displacing tens of thousands of American workers.

A 2006 study by the Pacific Research Institute found that excessive tort costs resulting from meritless lawsuits exceeded $198 billion annually. The lawsuit industry generates more revenue each year than Microsoft or Intel and twice as much as Coca-Cola.

We have made dramatic strides in Texas reforming our system of civil justice in ways that have limited meritless lawsuits and improved the competitive environment for business and industry.

A report by the nationally recognized economist Ray Perryman, released earlier this year, found that annual impact of lawsuit reforms implemented by the Texas Legislature since 1995 includes gains of $112.5 billion in spending each year, $2.6 billion in annual tax revenue and 499,000 permanent, new jobs in our state.

These are important gains, but as the recent scandals among personal injury trial lawyers tell us, our efforts to preserve, protect and defend our system of civil justice from manipulation must continue.

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When litigation turns into an extortion racket, it is a real problem. Law suit abuse shows a disrespect for the law and justice. It will also wind up harming those who really need legal redress by making every plaintiff suspect.