10/22/2007
CONTACT: Kevin Shivers, 717-232-8582 or 717-571-0009 (mobile)
or Jason Brewer, 202-406-4435
NFIB urges General Assembly to take immediate action to stop lawsuit abuse
HARRISBURG, Pa. -- Pennsylvania's leading small-business advocacy group -- the National Federation of Independent Business -- today hailed a package of legislative reforms designed to reduce junk lawsuits and other costly lawsuit abuse practices. NFIB/Pennsylvania State Director Kevin Shivers joined former U.S. Attorney Gen. Richard Thornburgh and state House lawmakers to unveil the measures that will reduce small-business costs.
"All of us pay the high price of lawsuit abuse," said Shivers. "Lawsuit filings have tripled in the last 30 years and have increased costs on all fronts. Junk lawsuits and lottery-sized awards have forced insurance premiums through the roof. These costs have forced employers to raise prices, forced governments to raise taxes for government services, and reduced our access to critical professional services and inflated health-care costs due to the practice of 'defensive medicine' and sky-high malpractice insurance rates."
Shivers noted that small-business owners rank the cost and availability of liability insurance as the second-most important problem facing them today. He said even the threat of a lawsuit can force an owner to take significant time away from their business and can cost as much as $100,000 to defend.
"Small business is the backbone of Pennsylvania's economy, employing half of the state's workforce," Shivers continued. "A typical NFIB small-business owner makes about $50,000 per year. Tragically, these small employers are just one lawsuit away from bankruptcy. Without these important reforms, small-business owners will continue to live in fear of and be crippled by lawsuit abuse."
Shivers said the package of reforms announced today will go a long way to help solve Pennsylvania's liability crisis and bring common sense, fairness and personal responsibility to the state's civil justice system. He urged lawmakers to take immediate action to stop lawsuit abuse.
The reform package, supported by NFIB members, includes:
- HB 470 -- Protects from liability retailers who sell a product and are unaware of any defects in that product.
- HB 686 -- Prohibits "venue shopping" by requiring that all civil cases must be heard in the county where the injury occurred.
- HB 850 -- Replaces the unfair legal doctrine of Joint and several liability with a comparative negligence doctrine that require plaintiff's to pay damages proportionate to their liability.
- HB 860 -- Constitutional amendment to cap non-economic damages.
- HB 1005 -- (Statute of Repose) providing reasonable period for which a manufacturer may be held liable for a product.
- Awaiting introduction -- Certificate of Merit -- requires plaintiff to include a certified statement that they suffer from a serious injury.
- Awaiting introduction -- Limits fees that personal injury attorneys may collect in medical liability cases.
- Awaiting introduction -- Limits damages in medical liability claims to those not recovered by other sources under the collateral source rule.
