Thirteen words of a taped interview of me discussing Barack Obama’s Senate record on tort reform appeared on ABC’s Weekend Good Morning America Sunday. Since they didn’t identify me by name, it probably won’t increase blog traffic.
I also wrote about this for Point of Law in December 2006. For more on Barack Obama, click the tag.
In an interview of Senator Barack Obama on Fox News, Chris Wallace questioned Obama’s claims of being a post-partisan leader who reached across the aisle. In response, Obama identified his support of the Class Action Fairness Act tort reform bill. Is this persuasive evidence of bipartisan behavior? I explore the question in today’s Examiner.
The Texas Republican, a member of the Senate Judiciary Committee, is introducing legislation that
would make several key reforms to current securities class action law to increase the accountability of and transparency for attorneys filing these lawsuits and the institutional plaintiffs they often represent. Specifically, it would require:
DISCLOSURE OF PAYMENTS BETWEEN PLAINTIFFS AND ATTORNEYS
Plaintiffs and attorneys would submit sworn certifications identifying any direct or indirect payments, promises of such payments, and other conflicts of interest between them, as well as all political contributions made to elected officials with authority or influence over the appointment of counsel in the case.
COMPETITIVE BIDDING FOR LEAD COUNSEL
Courts would include a competitive bidding process as one of the factors for the selection and retention of lead counsel for a class of plaintiffs.
STUDY TO DETERMINE APPROPRIATE ATTORNEYS FEES
GAO would commission a study of the last 5 years of fee awards in securities class action cases to determine the average hourly rate for lead counsel.
(release, Congressional Record statement). (cross-posted from Point of Law). More: hailed by Lisa Rickard of U.S. Chamber.
Tort reform, of course, resulting in substantially lower medical malpractice premiums and expenses, and an influx of 7000 doctors, including into many underserved regions. One indirect benefit: with less money spent on medical malpractice lawyers, self-insuring hospitals can spend more on doctors and on medical practice:
Take Christus Health, a nonprofit Catholic health system across the state. Thanks to tort reform, over the past four years Christus saved $100 million that it otherwise would have spent fending off bogus lawsuits or paying higher insurance premiums. Every dollar saved was reinvested in helping poor patients.
Also of relevance: the amusing results when Texas added evidentiary standards of medical harm to their asbestos and silicosis docket. Suddenly, over 99% of the cases went away because so few suing plaintiffs had a doctor willing to certify harm. (Joseph Nixon, WSJ, May 17). Related: POL Nov. 6, 2006 and POL Nov. 7, 2006, where I debate Texas law professor Charles Silver on these issues. Suffice it to say that the last year and a half has provided more support for my position than his.
Update: more data at Texas Medical Association website.
My latest Liability Outlook is on the Patent Reform Act of 2007:
Despite some in the media calling patent reform dead, on January 24, 2008, the Senate placed S. 1145, the Patent Reform Act of 2007, on the general calendar. The next few weeks will be critical to the legislation, which the House passed in September. Although much of the discussion has focused on the different perspectives and concerns that the high tech and the biotech/pharma industries have about the legislation, the fact remains that the patent litigation system is broken. Congress should make every effort to fix it by writing into this legislation reasonable formulas for damage awards and venue rules that discourage forum-shopping. …
Affiliates of Erich Spangenberg’s Plutus IP have sued 476 different defendants in 42 lawsuits. The vast majority of those lawsuits allege infringements of patents that Plutus IP purchased for $1,000. The use of invalid patents in litigation is more than theoretical. Philip Jackson sued his attorneys, Chicago plaintiffs firm Niro, Scavone, Haller & Niro, for malpractice after his $12.1 million jury verdict against Glenayre Electronics Inc. was reduced to under $3 million; Niro challenged the malpractice suit by claiming that th e patent Jackson had successfully enforced was invalid. In 2006, approximately 6,000 defendants were sued in 2,800 patent cases; in 2007, the six thousand mark was reached in early October, implying a 30 percent increase in patent litigation in a single year. Such litigation stifles substantial technological innovation. Patent trolls claim to block entire fields, and one cannot hope to innovate in these areas without the financial capital to handle the threat of patent litigation. IBM has 370 corporate patent attorneys, not just to avoid the pitfalls of infringement, but to create a patent portfolio that can provide counterclaims (or cross-licensing opportunities) if a commercial entity were to sue them for infringement. Since the late 1990s, patent litigation costs have outstripped patent profits.
ATRA’s remarkably successful annual Judicial Hellholes report highlighting the high and low points of several jurisdictions’ legal systems is out. (PDF) Regular readers will recognize many of the stories and jurisdictions (and an op-ed I wrote even gets a shout-out), but the report is a handy summary of the year in tort reform and lawsuit abuse. Lots of news coverage (AP/Fool.com; National Law Journal; the Examiner; others) and blog coverage (Lattman; Bader; Torts Prof; NAM; NAF; Murnane; Pharmalot).
In my radio interview last week, I was asked about the Wisconsin Association of Trial Lawyers’ claim that tort reform measures have no effect on medical insurance rates. ATLA’s “fact sheet” on medical malpractice reform makes the same claim. A 2003 HHS compilation of studies on the matter, linked on our old medical page, refutes that proposition. (HHS, “Confronting the New Health Care Crisis”, Mar. 3, 2003 at Tables 6 and 7).