Capitol Hill

When President Bush was governor of Texas, one of his most significant accomplishments was reforming tort laws to curb frivolous, abusive lawsuits. For this reason, many U.S. trial lawyers opposed Bush's 2000 presidential campaign. Since then, the Association of Trial Lawyers of America (ATLA) actively has opposed Bush's agenda to reform tort law at the federal level.

The White House Council of Economic Advisors estimates the cost of the tort system, including all types of personal-injury claims, is $179 billion annually. Bush knows tort reform is essential to help the economy and lower insurance costs. But comprehensive reform to reduce tort laws' financial burden is difficult to get through Congress, so more specific bills are being considered.

Medical malpractice

As Bush requested, on March 13, the U.S. House of Representatives passed the Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2003 (HR 5) by a 229-196 vote to establish federal limits for medical malpractice lawsuits. Such lawsuits cause doctors' liability insurance premiums and consumers' medical insurance premiums to increase significantly.

Currently, 25 states limit the amount a plaintiff can recover from a medical malpractice lawsuit for "pain and suffering," or noneconomic damages. But the limits in these states vary, and Bush wants to establish a uniform national cap of $250,000 for noneconomic damages, which the HEALTH Act would do.

Patterned after a 1975 California law, the HEALTH Act also would limit punitive damages to two times economic damages or $250,000, whichever is greater. In addition, the HEALTH Act would limit a plaintiff's attorney's contingency fees.

The HEALTH Act now awaits action in the Senate where NRCA hopes senators from states that have enacted such reforms will support the federal measure. To spur the bill's passage, doctors in Nevada, New Jersey and West Virginia have staged work stoppages. Other physicians from these states and different states have moved to states with lower insurance premiums or quit their practices.

Asbestos litigation

Similarly, asbestos litigation reform has been a hot topic in Congress. During the 106th Congress, NRCA was a member of the Coalition for Asbestos Resolution and lobbied to enact legislation that would create a government clearinghouse to provide claimants who suffer from asbestos-related illnesses with quick, fair settlements, as well as curtail frivolous lawsuits and limit legal costs (see "Capitol Corner," June 2000 issue, page 11). Although every effort was made to promote the bill, it didn't pass.

Currently, in the 108th Congress, a new coalition, the Asbestos Alliance, is promoting litigation reform legislation. The Asbestos Claims Criteria and Compensation Act of 2003 (S 413) was introduced by Sen. Don Nickles (R-Okla.) and is supported by NRCA. Thus far, it has been the subject of one hearing in the Senate Judiciary Committee, but Chairman Orrin Hatch (R-Utah) has been working to bring a bill to the Senate floor by this summer.

In a major break with ATLA and organized labor, the American Bar Association (ABA) in February adopted a new position urging limits on asbestos litigation. Evidence that never-ending asbestos lawsuits are threatening the viability of U.S. businesses and their employees' retirement savings helped change ABA's position. This is an important step toward asbestos litigation reform and controlling insurance costs.

What to do

The litigation explosion negatively has affected insurance costs, which results in escalating premium pricing. Contractors in states with an epidemic of construction-defect litigation know this firsthand. And in New York, trial lawyers exploiting an antiquated scaffolding law to file lawsuits against contractors are driving liability insurance carriers out of the market.

NRCA supports tort reform and the administration's efforts to rein in lawsuit abuse.

For more information and help, contact the U.S. Chamber of Commerce's Institute for Legal Reform at (202) 463-5724 or visit www.legalreformnow.com or contact the American Tort Reform Association at (202) 682-1163 or visit www.atra.org.

Craig S. Brightup is NRCA's vice president of government relations.