There is a reason lawyers are hated and despised, a majority of them are crushing the spirit of America. It is unfortunate that the Congress has not chosen to attack the one area that would free up a huge amount of capital -Â Tort Reform. That lawyers can find a small item of interest that most of us would choose to ignore to sue on and break the backs of companies in the process has been one of the most crushing job killers in the USA. As Is The Usual, Texas Shows The Way Forward.
Gov. Rick Perry and the Texas state legislature want the rest of the country to hear this message loud and clear: The Lone Star State is open for business.
In a unanimous vote last week, the Texas senate adopted â€˜loser paysâ€™ tort-reform legislation, which says that a plaintiff must pay the winning partyâ€™s legal fees if their complaint is judged to be groundless. On Wednesday, the Texas house concurred. Governor Perry, who had championed the legislation from its inception, signed it Monday night.
The Wall Street Journal editorialized, â€œThis Texas upgrade will build on reforms in 2003 and 2005 that have vastly improved the legal climate in what has not coincidentally become the countryâ€™s best state for job creation. Texas rewrote everything from class-action certification to product liabilityâ€ â€” and I would add the stateâ€™s medical-malpractice reforms to that list.
No wonder the nationâ€™s CEOs list Texas as the best state for business.
The success of â€˜loser paysâ€™ is destined to be viewed as a key victory for the Republican legislature over a group that once enjoyed almost limitless influence in the state: the Texas Trial Lawyers Association, which lobbied aggressively against the law. Prior to the reforms instituted in 2003 and 2005, Texas was an ambulance chaserâ€™s paradise. Nowadays, even the $13 million the trial lawyers spent to defeat Perry and other pro-tort-reform Republicans in the 2010 election had little impact. In a stunning rebuke, Lt. Gov. David Dewhurst stared down the trial lawyer lobby and shepherded the measure through to a 31â€“0 vote in the Senate.
Wisconsin took on the job killing unions; now Texas is taking on the sue-happy lawyers (job killers), and I applaud them. I am praying that the Republican House takes up something similar.