Tort Reform

2005

On April 14, The American Tort Reform Association (ATRA) commended the Manhattan Institute’s Center for Legal Policy for exposing how lawsuits in California are responsible for driving businesses and jobs .

In a report titled "Trial Lawyers, Inc.: California," released on the same day by the institute, it portrayed the state of California's lawsuit industry as a "corporation" run by lawyers who exploit the states civil justice system at the expense of both its citizens and businesses. ATRA's President, Sherman Joyce, said "California citizens should be outraged to learn that they are losing jobs and affordable housing on account of a handful of greedy plaintiffs’ lawyers who have exploited the state’s civil justice system."

The report also highlighted how an avalanche of "construction defect" litigation resulted in limited, affordable housing. In addition, the report disclose how 40% of California companies have made plans to take jobs out of the state, while nearly 50% of companies there have made policies to halt employment growth because of the labor lawsuit epidemic in California.

For three years in a row, courts in California have made the list of "Judicial Hellholes®." The abusesof lawsuits in California have contributed to the state's economic hardship that is clearly spelled out in Trial Lawyers, Inc.: California.

Judicial Hellholes® are state trial court jurisdictions where, according to ATRA, impartial justice is unavailable. Lawyers who specialize in personal injury will seek out these kind of jurisdictions to file their cases. They do this because they know that, if they win, they will usually receive a sizeable reward, a favorable precedent, or both.