The Tort Bar's Comeback

John McCain, Thad Cochran, Roger Wicker...congressional and judicial races...for some it comes down to this, and that's why you see the trial lawyers working so hard to beat the good guys. "The Tort Bar's Comeback" (The Wall Street Journal: 16 September 2008)

As voters mull the stakes in this year's election, here's an issue that ought to ring alarms in the ears of serious people: tort reform. After 20 years of state and federal efforts to reform a runaway legal system, the trial bar is reviving the monster.

At the federal level, lawyers and law firms invested in 2006 more than $85 million to get pro-lawsuit Democrats elected. Congress's new leadership has begun a political repayment plan -- packing legislation with provisions to increase the number and size of lawsuits. So far, this effort has been largely stymied by President Bush's veto threat. The tort bar sees 2008 as the real prize; it has already thrown $107 million toward increasing Democratic majorities.

The trial barons are making more progress at the state level, as described in a report by the American Tort Reform Association. States had been making progress: New laws cleaned up venue requirements, reformed punitive and noneconomic damages, and enacted medical malpractice reform. So-called "judicial hellholes" like Texas and Mississippi have seen insurers return and premiums fall.

The trial bar is fighting back, with success. In last year's legislative session, Michigan lawmakers proposed repealing safeguards for prescription drug providers; Maryland legislators wanted to revoke medical liability reforms; and Florida's legislature entertained the nullification of its joint and several liability reforms. The trial bar's big coup was in Colorado, where Democratic Governor Bill Ritter signed a law increasing previous limits on noneconomic damages.

Lawyers have also been laboring to create opportunities for more lawsuits, more money and more time to sue. Last year, Alabama saw legislation that would allow a tort claim to continue even after a plaintiff had died, while California proposed authorizing lawsuits for any violation of privacy. New Mexico and New Jersey passed laws authorizing citizens to file "false claims" suits on behalf of the state -- in effect turning private individuals into state bounty hunters.

Four states -- Colorado, Washington, Illinois and Texas -- considered proposals to increase the size of awards plaintiffs could claim, and with it attorneys' contingency fees. The tort bar pushed bills across the country to expand "consumer protection" damages and in at least three states to allow plaintiffs to claim damages for "emotional harm" when their pets are injured. In Maryland and Oregon, lawyers successfully shepherded new laws to extend the time in which plaintiffs could file lawsuits.

Plenty of legislatures remain wary of walking back down the highway of ruinous lawsuits, while many Governors say they'll veto this legislation. Still, the lawsuit industry is counting on discontent this fall to help flip a few more legislatures and governorships to pro-tort majorities, laying the groundwork for their proposals to become law. Tort reformers will have to push back.