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.
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