Ch. 15Law in America

Is Legal Reform Needed?

• Lawsuit abuse• “Litigious society”• Tort reform• Lawyer jokes

Areas of Alleged Legal Abuse

• Medical Malpractice lawsuits• Product liability lawsuits• Class action lawsuits

What Causes or Allows Lawsuit Abuse?

• Contingency fees– Typically 30-40% of award

• “Ambulance chasers”– Personal injury attorneys

• “Deep pockets”– Due to “joint and several liability”

Types of Damages

• Economic damages• Pain and Suffering• Punitive damages

– Could go to a public interest fund rather than the plaintiff

Who Pays the Windfall Awards?

• We all do• Insurance companies

– Raises our insurance rates– Drives people from their professions

• Businesses – Bankruptcies result– People lost jobs– Costs are passed along to consumers

What are Other Effects of Lawsuit Abuse?

• Removal of playground equipment• Prohibitions against “dangerous”

pastimes• Lax classroom discipline

In Great Britain

• Contingency fees are considered unethical and are illegal

• Judges rather than juries hear liability cases

What would Ralph Nader say?

• Product liability lawsuits keep companies from abusing consumers