Mythbusters: Debunking the Myths
Myth: The number of lawsuits filed is skyrocketing.
The number of tort (personal injury) cases has been declining for years. According to the National Center for State Courts, tort cases accounted for just 4.4 percent of all civil cases filed in 2008, and declined by 25 percent between 1999 and 2008. Tort filings in state courts decreased by six percent between 2007 and 2008.
According to the Justice Department under President George W. Bush, the number of federal tort cases resolved in U.S. District Courts fell by 79 percent between 1985 and 2003. In 1985, 3,600 tort trials were decided by a judge or jury in U.S. District Courts. By 2003, that number had dropped to less than 800.1
Additionally, the most recent statistics from the Administration’s Bureau of Justice Statistics show the number of tort trials at the state level has decreased. These statistics were compiled as part of the Bureau’s survey of state civil justice systems in the nation’s largest 75 counties. Among these counties, the number of tort trials decreased 31.8 percent between 1992 and 2001.2
Myth: Health care costs are rising and doctors are unable to practice due to litigation.
Health care costs are rising; however, medical malpractice litigation has nothing to do with it. According to the Congressional Budget Office, medical malpractice amounted to less than 2 percent of overall health care spending.3 The Government Accountability Office also found that malpractice cases have not widely affected access to health care.4
According to the American Medical Association, the overall number of physicians is up more than 40 percent since 19905, while over the same time, the U.S. population increased by only 18 percent.6 The number of emergency physicians, neurosurgeons, and OB/GYNs has also increased significantly over the same time period.
Myth: Legal reform is needed because lawsuits hurt small businesses.
Wrong. Multiple surveys have shown that lawsuits are not a concern for small business owners. A survey from the National Association of Manufacturers suggests that “lawsuit abuse” ranks at the bottom of concerns for manufacturers.7 A 2008 survey from National Federation of Independent Business had similar results, with “costs and frequency of lawsuits / threatened suits” ranking 65th on a list of small business owners’ worries.8
In reality, only big corporations and their front groups want to destroy the legal system so they can’t be held accountable for negligence and misconduct. Drug, oil, and insurance companies have tried to hide behind small business owners to accomplish this; however, these surveys reveal their true intentions.
Myth: Trial attorneys are trying to drive corporations out of business.
Absolutely not. Corporations, large and small, are all entitled to have profitable businesses. Most do so without being negligent or engaging in misconduct.
A strong civil justice system allows deserving individuals to get justice and hold wrongdoers accountable. Civil justice attorneys work to make sure all people have a fair chance through the legal system – even when it means taking on the most powerful corporations.
Myth: Trial attorneys are charging outrageous hourly fees and leave victims with nothing if they win.
Civil justice attorneys do not charge by the hour like most other attorneys. Instead, their clients pay on what is called a “contingency fee basis.”
For over 200 years the contingency fee system has provided Americans who must go to court with a degree of access to justice that is unheard of in most other countries. Our system allows people who cannot afford to pay legal fees to obtain representation on a contingency fee basis. In personal injury and death cases, and in certain other types of litigation, the fee is based on a percentage of any money damages that are recovered.
Myth: My insurance rates are skyrocketing because of lawsuits.
Your insurance premiums may be going up, but it has nothing to do with lawsuits. Look no further than the insurance industry’s annual profit reporting. In 2007, insurance companies reported a near-record profit of $61.9 billion. In comparison, the insurance industry’s 2004 profit was $38.7 billion, which broke all previous records. Their profits continue to rise, and unfortunately, your premiums are following suit.
The insurance industry has also made the argument that awards and damages should be limited; however, have later admitted that caps will not lower premiums. For example, American Insurance Association spokesman Dennis Kelly told the Chicago Tribune in 2005 that, “We have not promised price reductions with tort reform.”
Myth: People aren’t volunteering to help with Little League, Boy / Girl Scouts, etc., because they are afraid of lawsuits.
Wrong again. Similar to the previous myth, these lies are peddled by groups interested in destroying the civil justice system. The Volunteer Protection Act of 1997 was passed to provide immunity for volunteers of nonprofits in the course of their charity work.
Sources
1. "Federal Tort Trials and Verdicts, 2002-03”, Bureau of Justice Statistics, 8/17/05
2. "Civil Trial Cases and Verdicts in Large Counties, 2001”, Bureau of Justice Statistics, 4/04
3. "Congressional Budget Office, “Limiting Tort Liability for Medical Malpractice,” 1/08/04
4. “Medical Malpractice: Implications of Rising Premiums on Access to Health Care,” GAO, 9/29/03, www.gao.gov/cgi-bin/getrpt?GAO-03-836
5. “Physician Characteristics and Distribution in the U.S.,” American Medical Association, 2006 edition, p.312
6. U.S. Census Bureau data: http://factfinder.census.gov/servlet/SAFFPopulation?_submenuId=population_0&_sse=on; http://factfinder.census.gov/servlet/DTTable?_bm=y&-geo_id=01000US&-ds_name=PEP_2005_EST&-mt_name=PEP_2005_EST_G2005_T001
7. “National Manufacturing Week 2006 Annual Survey Results,” National Association of Manufacturers, http://www.nam.org/s_nam/doc1.asp?CID=6&DID=236617
8. “Small Business Problems and Priorities,” National Federation of Independent Business, http://www.nfib.com/object/2008problemspriorities.html
(Adopted from the American Association for Justice)
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