Project Lawsuit Abuse:
Stories from the Frontlines of Lawsuit Abuse

Posts for Civil justice system

Juror Appreciation Week: May 13-17

Editor's Note: Project Lawsuit Abuse regularly highlights lawsuit abuse news from across the country. Today, Tom Scott, Executive Director of California Citizens Against Lawsuit Abuse, contributed a guest post for Project Lawsuit Abuse.

In 1998, the California Legislature designated the second full week in May each year to honor the important contributions of citizens who serve on juries, making citizens’ right to trial by jury possible. This year marks the 16th Anniversary of Juror Appreciation Week. For those of you who have served on a jury, CALA would like to applaud you.

Another Class Action, Another Big Payday for Plaintiffs’ Lawyers

Plaintiffs’ lawyers recently won a class-action settlement against Sketchers shoes, with a judge ruling that Sketchers advertisements made “unfounded claims that the footwear would help people lose weight and strengthen muscles.”

We won’t get into the facts behind this lawsuit, but we will tell you about the terms of the settlement. Plaintiffs in the case – of which there were about 520,000 – will each receive up to $84. That amount is a partial refund of the cost of a pair of Skechers Shape-Up shoes. The attorneys in the case, however, will receive $5 million.

Canadians Have a Laugh at U.S. Tort Costs

The United States has, by far, the most expensive tort system in the world. In 2006, torts cost America $261 billion, meaning that each U.S. citizen pays an annual “lawsuit tax” of about $880.

An additional consequence to outrageous liability standards in the U.S. is that manufacturers have to waste time and money on ridiculous warning labels.  One of the most ubiquitous warning labels might be one that reads “Caution: this coffee may be hot,” which became necessary after the infamous hot coffee lawsuit of 1994.

Sunshine Comes to West Virginia

Transparency is key to good governance - donations to political candidates shouldn’t entitle anyone to shady contracts with elected officials. But that’s exactly what happened in West Virginia when Darrell McGraw was Attorney General.

When McGraw was in office, he frequently hired personal injury lawyers to conduct lawsuits on behalf of West Virginia, and a good deal of these lawyers had made hefty donations to McGraw’s campaign funds. Additionally, McGraw refused to share the details of these arrangements with the public.

Project Lawsuit Abuse Newsmakers

Tort reformers have been turning up all over the internet recently. We took the liberty of rounding up some of the standouts. You may recognize a few friends of Project Lawsuit Abuse in there. Here are some of the newsmakers from around the country.

Have Law Degree, Will Sue Law School

A Sad Reminder of Why We Need Legal Reform

Paula Henry’s story is an important reminder of how lawsuit abuse creates not only economic burdens but emotional ones as well. In 1995, Henry lost her husband to murder. Thankfully, her husband’s killer is now behind bars, serving a 31 year sentence.

Unfortunately, this convict has found another way to hurt Henry – he’s suing her from jail, claiming she caused him “emotional distress” and violated his privacy rights.

Even though this lawsuit is entirely outrageous, it still impacts Henry. She’ll have to pay attorney’s fees, and the suit is a painful reminder of a terrible event.

Investing in Lawsuits?

As regular Project Lawsuit Abuse readers know, lawsuit lending is a practice in which companies offer loans to individuals in the midst of a lawsuit. Typically, people take lawsuit loans to fund immediate needs, such as medical bills and funerals, while waiting for settlement money. Unfortunately, many lawsuit lenders charge outrageously high interest rates, meaning that people frequently end up with more debt than they initially had.

Some entrepreneurs have expanded the concept of lawsuit lending, taking it to a whole new level. Big time investors are now putting their money behind big time lawsuits, with the hopes of making millions.

The Lawsuit Lottery Continues

Our courts are intended to make people whole. When someone has a serious injury that occurred due to someone else’s negligence, then they should receive appropriate and reasonable compensation.

Unfortunately, we hear time and time again about folks who are using our courts to play the lawsuit lottery. These people are not trying to gain justice – they’re trying to get rich.

A recent story from West Virginia exemplifies this abuse quite well. In 2009, Erica Tamburin incurred injuries in the parking lot of a Cabela’s Wholesale store when another car reportedly hit her truck. Tamburin sued, claiming injuries to her “head, neck, shoulders, back, chest, arms, legs, body chemistry and psyche,” as well as annoyance, inconvenience, pain and anguish.

West Virginia and Legal Reform: So Close and Yet So Far

There’s no doubt that West Virginians want and need legal reform. West Virginia has one of the worst legal climates in the nation, and this fact is costing the state jobs and hurting its economy.

Acknowledging the need for reform, the West Virginia House of Delegates recently passed a resolution calling for a legislative study about the potential impact of creating an intermediate court of appeals.

The good news about this study is that West Virginia officials recognize the importance of taking steps to fix the state’s legal climate. The bad news is that they are moving too slowly. This study will take time, and West Virginia can’t afford to wait.

New Jersey Paid How Much to Trial Lawyers in 2012?!

Where are New Jersey’s tax dollars going? Well, a new investigation from the New Jersey Star-Ledger reveals that a lot of them are going to private lawyers. And by a lot, we mean a whopping $25 million! In fact, over half of New Jersey’s legal payouts in 2012 went to private lawyers.

These numbers are significant – they mean that settlement money isn’t going to victims, like it should be, but to attorneys. That doesn’t seem right to us. New Jersey’s financial resources should be used on important cause, like the state’s recovery from Hurricane Sandy. They should most definitely NOT be used to make rich trial lawyers even richer.