Myth: Personal injury lawsuits are skyrocketing and clogging our courts.
Fact: The number of personal injury cases has been declining for years. According to the Texas Office of Court Administration , injury cases account for only 2.5% of all cases on file in Texas District Courts in 2010.
Myth: Health care costs are rising and doctors are unable to practice because of medical malpractice lawsuits.
Fact: Health care costs are rising; however, medical malpractice litigation has nothing to do with it. According to the Congressional Budget Office , medical malpractice amounted to less than 2% of overall health care spending. The Government Accountability Office found that malpractice cases have not affected access to healthcare. According to the American Medical Association , the overall number of physicians is up more than 40% since 1990, while over the same time, the US population increased by only 18%. The number of emergency physicians, neurosurgeons, and OB/Gyns increased significantly over the same period of time
Myth: Tort reform is needed because lawsuits hurt small businesses.
Fact: Multiple surveys have shown that lawsuits are not a concern for small business owners. A survey from the National Association of Manufacturers revealed that "lawsuit abuse" ranks at the bottom of concerns for manufacturers. A 2008 survey from the National Federation of Independent Business showed similar results with "costs and frequency of lawsuits/threatened lawsuits" ranking 65th on a list of small business owners' worries.
Only big corporations and their front groups like Texans for Lawsuit Reform and Citizens Against Lawsuit Abuse want to destroy the legal system so they cannot be held accountable for negligence and misconduct. Drug, oil and insurance companies have tried to hide behind small business owners to accomplish this; however, these surveys revealed their true intentions.
Myth: Trial lawyers are trying to drive corporations out of business.
Fact: Corporations, large and small, all have the right to operate successful and profitable businesses. Most do so without being negligent or engaging in misconduct.
A strong civil justice system allows deserving individuals to receive justice and holds wrongdoers accountable. Trial lawyers work to make sure all people have a fair chance within the legal system - even when it means taking on the most powerful corporations.
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Myth: Lawsuits are out of control. Someone even sued because they spilled hot coffee on their lap!
Fact: Those looking to destroy the civil justice system have continually mocked Stella Liebeck and the McDonald's coffee case. Unfortunately, the actual facts of this case make it no laughing matter. Mrs. Liebeck's injuries included third degree burns – the most severe – to her groin, inner thighs and buttocks. She was hospitalized for eight days, during which time she underwent skin grafting and debridement treatments (the surgical removal of skin).
She tried to settle her claim with McDonald's for $20,000 – the amount Stella paid in out-of-pocket medical expenses – but they refused. McDonald's eventually admitted that they had more than 700 claims by people, including children, burned by their coffee between 1982 and 1993, some involving third degree burns similar to Mrs. Liebeck's. This history documented McDonald's corporate knowledge about the extent and nature of this hazard. McDonald's quality assurance manager testified that a burn hazard exists with any food served above 140 degrees; their coffee was kept at 185 degrees because they could make more coffee with fewer beans and thereby increase profit.
A jury awarded Mrs. Liebeck $200,000 in compensatory damages (medical care, pain, mental anguish and disfigurement), but reduced it to $160,000 because they found her 20% at fault for this bill. The jury also awarded $2.7 million in punitive damages, equal to two days of McDonald's coffee sales. This was eventually reduced to $480,000, even though the judge called McDonald's conduct reckless, callous and willful. Corporations must never put profits over safety.
Myth: Trial lawyers are charging outrageous hourly fees and leave victims with nothing if they win.
Fact: Trial lawyers do not charge by the hour like most other attorneys. Instead, their clients pay on what is called a "contingency fee basis," which means a lawyer is paid a percentage of the amount recovered. If there is no recovery there is no fee. This is the single most important deterrent to frivolous lawsuits. Trial lawyers will not take a case on a contingency fee basis if it has no merit.
For over 200 years, the contingency fee system has provided Americans who must go to court to seek justice with access to the courts that is unheard of in most other countries. Our system allows ordinary citizens who cannot afford to pay legal fees to obtain representation on a contingency fee basis.
Myth: My insurance rates are skyrocketing because of lawsuits.
Fact: Your insurance premiums may be going up, but it has nothing to do with lawsuits. Look no further than the insurance industry's annual profit reporting. In 2007, insurance companies reported a near record profit of $61.9 billion. In comparison, the insurance industry's 2004 profit was $38.7 billion, which broke all previous records. Their profits continue to rise and unfortunately, your premiums are following suit.
The insurance industry has also made the argument that awards and damages should be limited; however, they later admitted that caps on damages will not lower premiums. For example, American Insurance Association spokesman Dennis Kelly told the Chicago Tribune in 2005 that, "We have not promised price reductions with tort reform."
Myth: Schools are canceling recess because they are afraid of litigation.
Fact: School districts across the country are almost universal in blaming the elimination of recess on the need to meet requirements for teaching and testing hours
Myth: People aren't volunteering to help with Little League, Boy/Girl Scouts, etc., because they are afraid of lawsuits.
Fact: These lines are peddled by groups interested in destroying the civil justice system. The Volunteer Protection Act of 1997 was passed to provide immunity for volunteers of nonprofits in the course of their charity work. |
