:
Here are some numbers on the "cost" to Americans for the corrupt
legal system:
Lawsuit abuse affects virtually everyone, no matter how selfless their work or
how important their mission. Victims include the Girl Scouts and the Little
League.
Girl Scouts
Girl Scouts in the metro Detroit area must sell 36,000 boxes of Girl Scout
cookies each year just to pay for liability insurance. -The Detroit Free Press,
December 4, 1997.
Little League
The Little League has seen its insurance premiums skyrocket 1,000 percent in
a recent five-year period. They spend more on insurance than on any other item
in their budget. - Little League Baseball Inc. CEO Creighton Hale in The Wall
Street Journal.
Jobs are being lost
The chilling effect of lawsuits on our nation's economy has been documented
in a study for the National Bureau of Economic Research. This study catalogued
every state that had reformed its civil liability laws and compared the before
and after effects on economic performance. The results were dramatic: States
that reduced liability substantially increased productivity and employment.
Conversely, states that expanded liability decreased productivity and job
creation. - "The Causes and Effects of Liability Reform: Some Empirical
Evidence," by
Thomas J. Campbell, Daniel Kessler, George Shepherd. National Bureau of Economic
Research, Inc., January, 1995.
Innovation lost
Innovative products and needed services are being lost or jeopardized because of
lawsuit abuse. The litigation craze has shot straight at the heart of what until
now has been America's strong suit -- innovation -- keeping potentially
life-saving and life-enhancing products off the market.
Life-saving medical devices
Each year, more than 7.5 million lives in this country are either saved by
implantable medical devices -- like pacemakers for heart patients or shunts for
hydrocephalus -- or improved through products like replacement eye lenses for
cataracts and balloon angioplasty devices. Unfortunately, a recent study reveals
that at least 75 percent of suppliers of biomaterials used to make medical
implants have banned sales to U.S. implant manufacturers. In deciding to sell or
not to sell to the implant market, risk of legal liability was a key factor for
100 percent of suppliers.
- Study by New York-based Aronoff Associates for HIMA entitled
"Biomaterials Availability: a Vital Health Care Industry Hangs in the
Balance."
Safety improvements
A report by the Brookings Institute found that product liability lawsuits
discourage the incorporation of safety improvements.- "The Negative Impact
of Product Liability on U.S. Competitiveness: Liability Law Reform Reinforced by
New Studies," Kirkland & Ellis, October 1990.
New products
Forty-seven percent of companies hold back development projects over concern
about product liability. - "The Negative Impact of Product Liability on
U.S. Competitiveness: Liability Law Reform Reinforced by New Studies,"
Kirkland & Ellis, October 1990.
AIDS research
Science magazine reports that two biotech firms have halted or delayed
research on AIDS vaccines because of liability fears. -Americans for Lawsuit
Reform.
The estimated direct cost to Americans of our civil justice system is $152
billion. - Tort Cost Trends: An International Perspective, R.W. Sturgis,
published by Tillinghast, Towers Perrin, 1995.
That is 60% of the amount that is spent on K-12 public education. It is 2 1/2
times the amount spent on police and fire protection. -Tort Cost Trends: An
International Perspective, R.W. Sturgis, published by Tillinghast, Nelson &
Warren, Inc., 1992.
The "lawsuit tax" is estimated to cost every Michigan citizen about
$1,200 per year. We all pay the "lawsuit tax," calculated to be $1,200
for every man, woman and child in Michigan and every other state. The tax is
collected
through litigation.
Methodology
$300 billion (combining the direct cost of the civil justice
system with the cost of lost jobs, higher consumer prices and other factors)
divided by 248.7 million total U.S. population (1990) census. Source for legal
costs: The Legal Revolution and its Consequences, Peter Huber, 1988.
The "lawsuit tax" represents as much as thirty percent of the cost of
a stepladder, over ninety-five percent of the cost of childhood vaccines,
one-third the cost of a small airplane, and actually exceeds the cost of making
a football helmet. - America's Civil Justice Dilemma: The Prospects For Reform
by former United States Attorney General Richard Thornburgh, published in the
Maryland Law Review, 1996, Number 4.
Because of lawsuits, we are less competitive with other countries. The
"lawsuit tax" is a handicap we impose on ourselves, and it puts
American job providers at a huge disadvantage against our international
competitors.
There are 70,000 product liability lawsuits pending in the United States
annually, compared to only 200 in the United Kingdom. - "The Negative
Impact of Product Liability on U.S. Competitiveness: Liability Law Reform
Reinforced by New Studies," Kirkland & Ellis, October 1990.
The United States has 30 times more lawsuits per person than Japan. - America's
Legal Mess, U.S. News and World Report, August 19, 1991.