In the 1960s, the British Invasion brought America the music of the Beatles, Stones, Yardbirds, Hollies, Moody Blues … the list goes on. Today, Britain appears on the cusp of succumbing to an American-style legal invasion.
Legal Reform
Should a Judge Ask Environmentalists How Best to Punish a Gas Company?
In what surely must be a conflict of interest (just a smidge), a Rhode Island judge is asking environmental groups to offer suggestions on how best to punish a natural gas company.
Isn't that like asking a vegetarian to judge a barbecue contest? They’re not exactly going to be impartial on the matter.
Will Colorado Court Rein in Lawsuit Loan Sharks?
Today, a Colorado appeals court heard arguments in an important case testing whether Colorado law places any limits on out-of-control lawsuit lenders. Colorado courts are among the first in the country to decide whether consumer lending laws apply equally to lawsuit lenders, or if – as the lawsuit loan sharks have argued – they have unfettered freedom to exploit borrowers with interest rates as high as 100% or more. The case is Oasis Legal Finance Group, et al. v.
VIDEO: Store Owner Pays Big Bucks to Defend Against Lawsuit Abuse
Rafael Cuellar, the owner of a grocery store in Passaic, NJ, estimates he has spent around $350,000 to install and maintain his store’s camera and recording devices. But it’s not to protect him from shoplifters — it’s to help him defend against lawsuit abusers.
VOTE NOW: April's Most Ridiculous Lawsuit
While the fantasy flick, Oz the Great and Powerful, has racked up big bucks at the Box Office — a real-life “Oz” may be forced to spend big bucks to fight a ridiculous lawsuit.
It's a FACT: The Bill That Will Help Restore Integrity to the Justice System
From its small start more than forty years ago, asbestos has transformed into what the Supreme Court described as a “litigation crisis.”
Despite decades of asbestos litigation, our nation’s asbestos compensation systems are broken. There are strong indications that they are shortchanging victims, hurting businesses and undermining our justice system. That’s why it’s so important that Congress approve the Furthering Asbestos Claim Transparency (FACT) Act (H.R. 942).
Customize Your Free Enterprise Experience With the New App
OUTRAGE: Inmate Lawsuits Cost NYC $111 Million
Rikers Island inmates are soaking New York City taxpayers by suing over everything from slippery shower floors to beds they claim are too short, according to the New York Post. Legal claims against the Department of Correction have resulted in $111.1 million in payouts over the past five years—including settlements of “frivolous” cases that would have cost more to fight in court. Statistics show that the agency was sued nearly 8,500 times between 2007 and 2011.
Supreme Court Strikes a Blow Against Trial Bar
Last week, attorney John H. Beisner wrote about three types of legal abuse that weighs down our economy. One of them is a trial lawyer scheme designed to circumvent federal law and keep class actions in plaintiff-friendly state courts instead of more impartial federal courts.
Grapes of Wrath: Raisin Case to Be Heard at the Supreme Court
Marvin and Laura Hornes’ 20-acre vineyard is in full bloom right now, with green buds on the vines and almond trees in full flower. But instead of tending to his next raisin crop, Marvin Horne is flying to Washington D.C. next week to defend himself against a government assault that has been going on for more than 10 years.
3 Types of Litigation Abuse That Weigh Down Our Economy
In recent years, significant progress has been made in addressing certain forms of litigation abuse in the United States, both at the federal and state court levels. Nevertheless, they persist and are undermining our economy and hurting the reputation of our legal system. Here are three of the most widespread litigation abuses.
Class action lawsuits
WSJ: "As Asbestos Claims Rise, So Do Worries About Fraud"
Today’s Wall Street Journal carried this must-read, front page story that highlights the fraud and abuse surrounding asbestos litigation and the bankruptcy trusts.
This watershed article is the first detailed examination of the trusts in a major media outlet.
Ridiculous Lawsuit Nominees: Lawsuits vs. Parents, the IRS, and Babies R Us
We are always on the lookout for examples of the most ridiculous lawsuits from across the country — and we’re pleased that thousands of Americans vote in our “Most Ridiculous Lawsuit” polls each month.
Last month’s poll had a clear winner — with Americans selecting “Ohio teacher claims fear of children in suit against district” as the most ridiculous lawsuit of the month.
Time to Try Medical Liability Reform
A missing piece of the puzzle for controlling health care costs has been medical liability reform. The threat of lawsuits forces doctors to practice defensive medicine and order medically-unnecessary tests that add to health care costs.
VOTE NOW: February’s Most Ridiculous Lawsuit
Each month, the Chamber’s Institute for Legal Reform gets a lot of attention for featuring a poll through which Americans can vote for the “Most Ridiculous Lawsuit of the Month.”
We wish we could claim that finding the monthly nominees requires hours upon hours of research and investigation. But, the truth is, since we started conducting these polls four years ago, we have never had trouble finding new nominees.
Help Shape the Conversation in Advance of #SOTU
The president will outline his second-term agenda during his State of the Union speech on Tuesday night. With 23 million people unemployed, underemployed, or who have stopped looking for work, the American public wants to hear from the president about policies that create jobs. Below are shareable tweets about each item in the Chamber’s Jobs & Growth agenda. Although the message in each tweet is important, we are asking our readers to select those they think are the most important to the future of the U.S. economy by retweeting them.
U.S. Chamber President: Debt Is Greatest Threat
Despite some improvement in business conditions in 2012, the U.S. economy is simply not growing fast enough to create jobs, lift incomes, expand opportunities, or contribute significantly to government revenues in order to reduce trillion dollar deficits, U.S. Chamber President and CEO Tom Donohue told a packed audience during his annual State of American Business address.
Top Ten Most Ridiculous Lawsuits of 2012
A lawsuit by a driver who pleaded guilty to driving under the influence of alcohol and drugs and then sued a victim that he killed tops the U.S. Chamber Institute for Legal Reform’s (ILR) survey of the Top Ten Most Ridiculous Lawsuits of 2012, released today.
“Abuse of our legal system is no joke, and these examples range from the outrageous to the absurd,” said ILR President Lisa A. Rickard. “This poll reminds us that as a society, we sue too much. In turn, these abusive lawsuits inflict harm on lives, jobs, and our economic growth.”
Do You Live in a Judicial Hellhole?
With its beautiful beaches, beautiful people, and warm climate, what's not to like about California? It's unfair and out-of-balance civil justice system, for starters.
The Golden State is ranked #1 in the American Tort Reform Association's Judicial Hellholes 2012-2013 report. Here's the explanation of California's ranking:
Watch InJustice on AXS TV on December 18
Last year, we posted about the groundbreaking documentary — InJustice — which is the first-ever, feature-length film about the American legal system.
Ohio is Set to Leave Double Dipping to George Castanza
“Double dipping” isn’t just about George Castanza at the chip bowl during a party. By abusing the legal system, trial lawyers have been pulling off their own version of double dipping with asbestos lawsuits. The Wall Street Journal points out that:
Supreme Court Sides With Property Owners In First Case of Takings Trilogy
If the federal government destroyed your property by flooding it, you’d probably expect that they would be required by the U.S. Constitution to compensate you for your property loss. Remarkably, in the first of a trio of property rights cases to be decided by the Supreme Court this term, the federal government argued that it had no obligation to compensate property owners in such scenarios. On Tuesday, a unanimous U.S.
$19 Billion Anti-Chevron Lawsuit Heard by Canadian Judge
Last week, a Canadian Superior Court judge heard arguments in a $19 billion legal battle between Chevron and a group of trial lawyers representing Ecuadorian villagers and expressed doubts over whether or not he could issue a ruling on the case.
VIDEO: How Lawsuits Killed An American Icon
This post first appeared on the Institute for Legal Reform’s Faces of Lawsuit Abuse
You may never have heard of Blitz USA, but if you have a red portable gasoline can in your garage, chances are you own their product.
Lawyers’ New Jackpot Justice Model
A new type of litigation financing is helping propel a wave of lawsuits in the United States.
Third-party litigation financing (TPLF) permits outside investors to purchase a stake in the outcome of litigation and turns the justice system on its head by putting lenders, not litigants, in charge, according to the U.S. Chamber Institute for Legal Reform (ILR).
An Offer You Can’t Refuse? Property Rights Front and Center Before U.S. Supreme Court
As a property owner applying for a development permit, what do you do when the government makes you an offer you can't refuse? That’s the dilemma Coy Koontz, Sr. faced when he applied for a permit to develop 3.7 acres of his property in Orange County, Florida – only to be told by the St. Johns River Water Management District (a government entity) that it would only grant his permit if he agreed to pay for costly improvements to 50 acres of completely unrelated, government-owned property, miles away from his proposed development.
Trial Lawyer’s Version of a Tax Refund? SCOTUS Says No to Class Action Against Feds
A frivolous class action brought against the federal government demanding oodles in damages from federal coffers? Call it the trial lawyers’ version of a tax refund.
4 Trial Lawyer Tactics for Certifying Bet-the-Business Class Actions
As originally designed, the class action device is an important legal innovation to help plaintiffs join together to advance legitimate legal claims. But in recent years, trial lawyers have twisted the class action device beyond recognition to advance their own monetary interests at the expense of the rights of defendants and the public at large. This morning, the U.S.
Your Feedback: Permit Snafu, State Legal Rankings Debated
Farmer Fined for Hosting Kid’s Party Without Permit
I agree this is a pretty stiff penalty, but farmers do get more than their fair share of tax breaks, so if you got to get permits to be legal, then they should have gotten them.—Taylor51
No Holds: Commissioner Reveals Workings of Consumer Safety Agency
When it comes to adhering to the President’s Executive Order on regulatory review, many agencies within the administration may be slacking, but none more so than the Consumer Product Safety Commission (CPSC), according to an official from that agency.
Outside Investors Try to Tip the Scales of Justice With Poker Chips
Litigation is a calculated gamble – you place your bets, you take your cards, and you try to play the best hand you can. But what happens when an uninvolved bystander decides to back one of the players, putting a big pile of brightly colored chips right in front of them?
U.S. Legal System at a Crossroads
When Americans think of their justice system, they might envision the heroic small town lawyer, Atticus Finch, in To Kill a Mockingbird. Or Perry Mason. Or the countless other movies, TV series and high school civics textbooks that depict the U.S. justice system as a pillar of American society.
Unfortunately, this glorified image is at odds with today’s reality. In too many areas, the U.S. justice system is becoming less a means for delivering justice and more a profit center for outside parties – less Atticus Finch and more Gordon Gekko.
Ghosts, Vampires, and $5 Million Gas? Ridiculous Lawsuits Abound
In advance of the U.S. Chamber Institute for Legal Reform’s annual summit, we’re taking a look back at some of the most ridiculous lawsuits of the year.
Next Steps in the Fight Against “Tort Tourism” and a Fraudulent $18 Billion Judgment
Trial lawyers seeking to enforce an ill-gotten $18 billion foreign judgment against Chevron today might feel one step closer to carrying out their plan to enforce the fraudulent judgment here and abroad, after the U.S. Supreme Court on Tuesday left in place a narrow, procedural ruling from a lower court. But the trial lawyers shouldn’t start counting their dólares just yet – those who respect the rule of law still have a number of arrows in the quiver to challenge one of the most blatant examples of “tort tourism,” ever.
QUICK POLL: What topic would you have asked the presidential candidates about during the debate?
Choose Jobs, Not Lawsuits
The national unemployment rate has been stuck above 8% for more than 40 straight months. A handful of states have watched their jobless rates reach the double digits. It’s obvious what states need: more jobs. What they don’t need? More lawsuits.
Do you think that the liability environment in the United States is fair and reasonable?
Pennsylvania's Poor Lawsuit Climate Puts Keystone State at Crossroads
The Founding Fathers who gathered in Philadelphia more than 200 years ago truly understood the importance of an independent and fair civil justice system. As Thomas Jefferson once said, “The most sacred of the duties of a government is to do equal and impartial justice to all its citizens.”
Unfortunately, Jefferson would hardly recognize the system of justice in present-day Pennsylvania and, particularly, Philadelphia. What was once the birthplace of American government has come to exemplify some of the worst excesses of today’s American civil justice system.
Ranking State Lawsuit Climates
A state’s legal climate is an increasingly important factor in business decisions, according to a survey of senior attorneys and executives conducted for the U.S. Chamber Institute for Legal Reform (ILR) by Harris Interactive.
Seventy percent of the 1,125 survey respondents say that a state’s lawsuit environment is likely to impact important business decisions at their companies, such as where to locate or expand their businesses. That is up 13% from just five years ago.
Seven strikes, you're out? EPA court defeats keep piling up
It’s been a tough year in the courts for the EPA, according to an American Action Forum “scorecard” counting at least six job-killing-economy-slowing EPA regulatory actions that federal courts have struck down. We might add a seventh to AAF’s list – the U.S. Supreme Court’s decision in Sackett v.
Study Finds Wage-And-Hour Lawsuits Have Tripled
Employers struggling in today’s sluggish economy can add "more lawsuits" to the list of challenges they must confront in the wake of the recession. That’s according to the Blog of Legal Times (BLT), which is reporting on a new study by law firm Seyfarth Shaw showing a “steady increase” in wage-and-hour lawsuits since the recession hit in 2008.
From Gibson Guitars to Michigan Soda Bottles: The Troubling Trend of "Criminalizing Capitalism"
You might have missed last Friday’s compelling editorial in the Wall Street Journal by Henry Juszkiewicz, CEO of Gibson Guitar Corp., regarding the company’s ongoing legal woes stemming from a draconian federal enforcement of the Lacey Act.
“Tort Tourism” Is Just Another Name for “Shakedown”
Innovation runs amok when trial lawyers find new ways to attack businesses. In Investors Business Daily, U.S. Chamber President and CEO, Tom Donohue lets us know about “tort tourism,” lawyers traveling the globe in search of sympathetic courts where they can sue companies for big paydays and then try to convince American courts to uphold those rulings. He uses the example of Chevron under legal assault in Ecuador:
When Hedge Funds Bet on Lawsuits, Society Loses
When you think of “investments,” stocks, bonds, commodities, and real estate come to mind. What doesn’t are lawsuits, but that’s the new fad among some hedge funds and other investment firms. In a column appearing in The Atlantic, Lisa Rickard, President of the U.S. Chamber’s Institute for Legal Reform, looks at the unseemly practice of third-party litigation financing (TPLF)--betting on lawsuits.
She explains what TPLF is:
States Overcome the ‘New Normal’
While the national economy is slowly expanding and adding private sector jobs, some states are doing better than others. Still, others are poised for greater future economic success because of pro-growth policies, according to the latest edition of the U.S. Chamber’s annual Enterprising States study.
Supreme Court Experts Weigh in On ‘Historic’ Supreme Court Term
Two Supreme Court heavyweights headlined the National Chamber Litigation Center (NCLC)’s annual Supreme Court press briefing to discuss the top business cases on the Court’s docket, including the constitutional challenge to the health care law. Video archive of the briefing is available online.
Facts on the FACT Act
The U.S. House Judiciary Committee has favorably reported the Furthering Asbestos Claims Transparency (FACT) Act of 2012. The FACT Act is common-sense, bipartisan legislation that would simply require the personal injury settlement trusts established by bankrupt asbestos lawsuit defendants to file quarterly reports with the bankruptcy courts that describe their claims.
Mississippi Governor Signs Landmark Outside Counsel Sunshine Law
Mississippi Governor Phil Bryant signed legislation promoting transparency and capping contingency fees when the state attorney general, a state agency, or elected officials hire outside private plaintiff attorneys to represent the state.
Through its ‘sunshine’ law, Mississippi took a significant step to rein in the troublesome practice of awarding contingency fee contracts to plaintiffs’ lawyers who are also major campaign contributors to the state attorney general.
Correct the Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act bars U.S.-based and U.S.-traded companies from giving things of value to foreign government officials or their surrogates in order to gain a competitive advantage — a worthy law whose goals have wide support from American businesses.
But more than 30 years of experience with the law and an increasingly global economy have shown some weaknesses which, if corrected, could improve compliance and raise business standards.
Does Arbitration Offer Better Access to Justice for Consumers?
Arbitration is a fair and cost-effective way of resolving claims, according to the testimony of Victor Schwartz (which he discusses in the video above) on behalf of the U.S.
Legacy Lawsuits are Costing Louisiana Jobs
Louisiana's oil and gas industry supports a tremendous number of direct and indirect jobs, is the fourth-largest producer of crude oil and is one of the nation's top producers of natural gas.
However, the current legal environment in Louisiana is harming the oil and gas industry and the state economy due to legacy lawsuits -- suits seeking a financial windfall for alleged environmental damage claims by certain landowners. Such lawsuits are unique to Louisiana, and discourage oil and gas exploration and production. But it doesn't stop there.
Plaintiffs to Soap Maker: Come Clean on Claims
Dial is going to get its hands dirty to defend itself against a pair of lawsuits over a humorous ad campaign to promote its Magnetic body wash for men. Two separate lawsuits have been filed in San Diego claiming that the soap—described on the bottle as “Pheromone-Infused, Attraction Enhancing Body Wash”—contains insufficient amounts of pheromones to attract women.--Courthouse News Service, February 14, 2012
VIDEO: Paul Clement Discusses Obamacare, Preemption, EPA
In this interview conducted at the 12th Annual Legal Reform Summit last October, former U.S. Solicitor General Paul D. Clement previewed the upcoming Supreme Court case on health care reform. Clement is the lawyer leading the challenge to the law.
Promoting Fairness in the Legal Discovery Process
Today the Fairness in Disclosure of Evidence Act of 2012 was introduced in the U.S. Senate. The bill would require that federal prosecutors disclose evidence that is favorable to the defendant in the course of a criminal proceeding; outline when such evidence must be disclosed; and, provide meaningful remedies for violations of the rule.
Trial Lawyers Stepping Up Online Advertising Spending
Plaintiffs’ law is a big business – according to Towers Watson, the U.S. tort system cost $264.6 billion in 2010 (the most recent year for which data is available). A new study conducted by New Media Strategies and sponsored by the U.S. Chamber Institute for Legal Reform (ILR) analyzes the use of digital marketing by plaintiffs’ lawyers.
SERIES: The Eight Factors of American Competitiveness - Chapter One
This article originally appeared in Business Horizon Quarterly, a publication of the National Chamber Foundation.
Gibson Guitar Still Waiting to Clear Its Name
Last August, federal agents raided and briefly shut down the Gibson Guitar factory in Nashville, TN. They accused the company of violating the Lacey Act by improperly classifying wood for guitar fingerboards that they imported from India. The act makes it a crime to import certain products with the goal of protecting endangered plants and animals.
FCPA Guidance Needed to Help Businesses Comply
Today, the U.S. Chamber Institute for Legal Reform and a broad-based business coalition sent a letter to the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) regarding forthcoming guidance on enforcement under the Foreign Corrupt Practices Act (FCPA).
Justice's FCPA Cash Cow
An out-of-control Justice Department has been getting slapped by federal judges for pushing Foreign Corrupt Practices Act (FCPA) prosecutions too far. The Wall Street Journal editorial page reports:
Plenty of Ridiculous Lawsuits Still Floating Around
A federal judge has dismissed a lawsuit filed by the People for the Ethical Treatment of Animals that wanted to use the 13th Amendment’s prohibition on slavery to force an aquatic park to set a group of whales free. The lawsuit, filed last October, was a contestant in a previous
Top Lawsuit Trends for 2012
The trial bar is always looking for new ways to sue – and new ways to fund potentially lucrative lawsuits. We asked four key practitioners to identify the trends in litigation which should be of concern to the business community in 2012.
In Uncertain Times, An Agenda for Growth and Jobs
With America facing a still sluggish economy and great uncertainty, Washington lawmakers must not take the election year off but, rather, get busy working with business to achieve everyone’s highest priority—putting Americans back to work, said U.S. Chamber President and CEO Tom Donohue during his annual State of American Business address.
Kidnapper Sues Victims Tops Most Ridiculous Lawsuits List
The U.S. Chamber of Commerce Institute of Legal Reform (ILR) published its list of the Top Ten Most Ridiculous Lawsuits of 2011, as voted on by the public. Topping the annual list was a case filed by a kidnapper against his victims for not helping him evade the police. That lawsuit earned more than 54% of votes.
Voters made their selections on ILR’s FacesOfLawsuitAbuse.org website. Lawsuits nominated for the most ridiculous distinction appeared in monthly polls throughout the year.
Teen and Pharmacy Hurt by Drug Thief
From the Institute for Legal Reform's FacesofLawsuitAbuse.org, I found this story of a pharmacy being forced to pay $1.4 million because a teenager was permanently injured after overdosing on Xanax stolen by a former pharmacy employee. While what happened to the teen is sad, pinning the blame on the pharmacy is equally so.
A Picture’s Worth a Lawsuit of Thousands of Dollars
Several years after his wedding and one year after his divorce, a N.Y. groom sued his wedding photographer over what he calls unacceptable photographs that ruined his special day. Todd J. Remis is asking to be repaid $4,100 for the photographs and $48,000 to re-create his wedding, which would include flying the weddings’ principals from Latvia to New York so that their photographs can be re-shot by a different studio.
Source: The New York Times, November 2, 2011
Small Business Owner Tells His Lawsuit Story
When Roberto Guerrero and his family emigrated from Nicaragua to San Francisco and opened several coffee shops in the 1980s, they were pursuing the American Dream.
That dream did not include being hit with a lawsuit from a customer. Unfortunately, California’s version of the Americans with Disabilities Act (ADA) has created opportunities for plaintiffs’ lawyers to target small businesses like Guerrero’s.
Most Ridiculous Lawsuit of 2011 Announced!
The U.S. has been the undisputed lawsuit capital of the world for some time. And while the courts play a central role in resolving disputes and maintaining a civil society, that function isn’t easy when they are packed with frivolous suits.
Ridiculous lawsuits clog up our legal system’s dwindling resources, taking time away from legitimate grievances to devote to the vindictive, the hypocritical, the irresponsible, and the outright absurd.
Federal Government: "Friend of the Court" But Not of American Business
In a disappointing about-face, the federal government declared for the first time yesterday its support for expanding liability under the "Alien Tort Statute" (ATS) to permit civil lawsuits against corporations. If the U.S. Supreme Court adopts the legal position now advanced by the U.S.
Key Supreme Court Cases of Interest to Business
What do Obamacare, preemption, and environmental regulation have in common? All are addressed in Supreme Court cases the business community should be keeping an eye on, according to former U.S.
Judge Reassignment in Madison County the Right Move, But More Must Be Done
Madison County Circuit Judge Barbara Crowder has been removed from administering the court’s asbestos docket a week after her campaign committee received $30,000 in contributions from asbestos plaintiffs’ lawyers whose firms had received “trial slots” on the court’s 2013 docket.
Why Lawsuit Lending is a Problem
At our 12th Annual Legal Reform Summit on October 26th, we pulled aside Thurbert Baker, the former attorney general of Georgia and a partner at McKenna Long & Aldridge, and asked him to briefly explain why lawsuit lending is a problem. See his response above.
Vote for the Most Ridiculous Lawsuit of the Month
What could make a judge wax poetic about “misty watercolor memories” and “scattered pictures of the smiles . . . left behind?” A lawsuit over a wedding. Or rather, a lawsuit to recreate a wedding.
Justice System for Sale
Mike Carter is afraid to hire more employees for his family-owned business.
The owner of Monroe Rubber & Gasket Company in Louisiana, which once sold encapsulated asbestos gaskets, needs about 10 more employees. However, hundreds of asbestos claims facing his company are preventing him from doing so.
Ridiculous Lawsuit Nominee - The Old, Older, and Oldest Edition
Irony. It’s defined as a result that is the opposite of what is or might be expected or considered appropriate. Like when somebody who is fighting against ageism wants to remove a judge from his case for being too old. That lawsuit is one of the nominees in this month’s most ridiculous lawsuit poll.
Ridiculous Lawsuit Nominee - Suit Says SeaWorld "Enslaves" Animals
Whales are people, too! At least, according to a lawsuit from an animal rights group.
The group is suing SeaWorld on behalf of five killer whales that are part of the park’s aquatic performances, hoping to extend Constitutional rights to animals. Specifically, they think that the 13th amendment, which outlawed (human) slavery in 1865, should also include protecting the orcas from involuntary servitude.
DOJ's Intention to Clarify Foreign Corrupt Practices Act Enforcement is Encouraging
We are encouraged by Assistant Attorney General Lanny Breuer’s announcement yesterday that the Justice Department intends to issue detailed new guidance on the Foreign Corrupt Practices Act’s criminal and civil enforcement provisions.
Yesterday's announcement is a welcome acknowledgement of what we in the business community have long said – DOJ’s current FCPA enforcement practices need clarification and modernization.
We believe that strong guidance from the DOJ could be the foundation for lasting legislative improvements to the statute.
Never-Ending Asbestos Quagmire
Latino Small Business Owners Tell Their Stories of Lawsuit Abuse
Ramiro Arvizu and Jaime del Campo are the owners of La Casita Mexicana, a small restaurant in Bell, California that has become increasingly popular for its authentic Mexican dishes. Yet one day, Jaime and Ramiro were shocked to receive notice that they had been sued, along with dozens of neighboring businesses, by a plaintiff who has filed more than 500 lawsuits – including many against small Latino-owned businesses.
Lawsuit Financing Isn’t Quite the Investment We Had in Mind
When every responsible party in America is focused on economic growth and job creation, some lawyers are looking for ways to line their own pockets—at the expense of jobs, the economy, and even their own clients. In their endless pursuit of new lawsuit opportunities, their latest tactic is to get financiers to back litigation. These so-called lawsuit investors put up the money for a lawsuit in exchange for a cut of the settlement.
New Study: States Can Realize Economic Savings by Improving Their Legal Environments
State Legal Reform Could Increase Employment by Nearly 3%, New Paper Shows
At a time when states are facing tight budgets and sluggish economic growth, a new working paper released by the U.S. Chamber’s Institute for Legal Reform (ILR) shows that actions taken by states to improve their legal environments can produce real economic dividends.
Supreme Court Should Move Quickly on Health Care Law, U.S. Chamber Says
The deepening legal conflict over the fate of the health care law is adding another layer of uncertainty for employers, and the U.S. Supreme Court should move quickly to resolve the issue, according to an amicus brief filed by the National Chamber Litigation Center (NCLC), the Chamber’s public policy law firm.
South Carolina Governor Nikki Haley: "Either You Vote for the Trial Lawyers or You Vote for Business"
At ILR’s 12th Annual Legal Reform Summit, South Carolina Governor Nikki Haley, ILR’s 2011 State Leadership Award winner, discussed the importance of tort reform to attract companies and create the conditions for job growth in her state. She stressed that a big part of South Carolina’s appeal to U.S. businesses looking to locate there is a low cost of business, due, in part, to legal reform.
Panel at Legal Reform Summit Addresses Recent Supreme Court Cases
The U.S. Supreme Court has considered several important business cases in recent years, with several more on the docket for the current term. But despite some high profile victories, the current Supreme Court is not uniformly pro-business, according to a panel on Supreme Court cases at ILR’s 12th Annual Legal Reform Summit.
Release of Study on State Legal Environments Highlights 2011 Legal Reform Summit
Today, House Speaker John Boehner, South Carolina Governor Nikki Haley and Virginia Governor Bob McDonnell will join dozens of leaders from business, government and the legal profession for the U.S. Chamber Institute for Legal Reform’s 12th Annual Legal Reform Summit. The Summit will focus on key legal, regulatory, and political issues that impact the ability of the American economy to grow and to create jobs.
12th Annual Legal Reform Summit to Feature Speaker Boehner, SC Governor Haley, and VA Governor McDonnell
GAO Report Confirms Asbestos Bankruptcy Trust System Is Broken
Yesterday, the Government Accountability Office (GAO) released “Asbestos Injury Compensation: The Role and Administration of Asbestos Trusts,” a report to Rep. Lamar Smith (R-TX), the Chairman of the House Judiciary Committee.
I commend Chairman Smith for commissioning this report, which confirms that the asbestos trusts operate under a shroud of secrecy and without judicial or federal government oversight.
Ridiculous Lawsuit Nominee - Obese Man Sues Burger Joint over Tight Squeeze in Booths
Who doesn’t crave White Castle? Their sliders have hit the spot for kids on late night snack runs to resurgent Hollywood stars to most everyone in between.
However, not everybody loves the burger joint. One man in New York has a particular axe to grind with the burger shop. He says that the booths at the restaurant aren’t big enough to accommodate his nearly 300-pound frame. So he’s suing.
Prisoner Sues State Over Porn Ban
An inmate is suing Michigan Gov. Rick Snyder and the state, claiming he is being subjected to cruel and unusual punishment because county jail rules ban pornographic materials. Kyle Richards, 21, is also arguing that porn should be provided by taxpayers if the inmate does not have the financial means to pay for it. Richards has been in jail since January after being charged with bank robbery. Police say he stole about $900 after handing a bank teller a note.
Source: The Detroit News, July 3, 2011
Ridiculous Lawsuit Nominee - NFL Fan Sues Player & Team Over Fan Appreciation Day Injury
It’s nice to have football back. Fans didn’t miss out on any meaningful games, owners and the union hammered out a new bargaining agreement, and players got back to work while skipping extended training camps. Most players probably welcomed the respite from two-a-days in sweltering temperatures, but one player was probably happier than most for the shortened camp schedule, considering that a previous camp landed him in court.
Ridiculous Lawsuit Nominee - Bad Kids Fail in Their 'Bad Mothering' Lawsuit
They say parenting is the toughest job in the world. Finding a happy medium between protecting your children while helping them find the confidence and independence to go out into the world isn’t easy. Sometimes the best you can hope to do is put them on the right path and wait for them to realize that being a parent wasn’t as easy as they assumed.
Ridiculous Lawsuit Nominee - Fired Lawyer Sues Firm for $77 Million
A first-year lawyer who was fired from his firm after he burned too many bridges is now suing the firm for $77 million, alleging that they interfered with his job while he was there and hurt his career prospects by letting him go.
The Continuing Tragedy of Asbestos Lawsuit Abuse
Last night, President Obama spoke to Americans – including the more than 14 million who are unemployed – about the need for more job creation. This morning, the U.S. House Judiciary Subcommittee on the Constitution held a hearing about one barrier to job creation, the broken asbestos litigation system. The hearing was entitled, “How Fraud and Abuse in the Asbestos Compensation System Affect Victims, Jobs, the Economy, and the Legal System.”
Frivolous Claim Tries to Fleece Taxpayers -- Twice!
There’s no doubt about it – state courts are jam-packed and getting worse. In fact, the budget crisis in some states has gotten so bad that they will begin closing courthouses and reducing staff, which will lead to even more delays in already backed-up systems. Frivolous lawsuits filed with little or no legal foundation only make the problem worse.
Ridiculous Lawsuit Nominee: Judge Tosses Iffy Class Action - Says Plaintiff Can't Claim She's Too Stoopid To Understand Policies
Whenever a frivolous or ridiculous lawsuit is allowed to move forward through the court system, we ask ourselves why the judge didn’t toss it at the beginning. Well a judge in New York has taken a welcome but all-too-rare stand and dismissed a questionable class action lawsuit, writing that a plaintiff’s claim assumes that consumers have reached “a level of stupidity” that the court cannot accept.
Ridiculous Lawsuit Nominee: Woman sues "boyfriend" after their Facebook "relationship" ends
How many friends do you have? Real friends, I mean – the ones that you watch the game with, that will pick you up when your car breaks down, or that you simply like to spend time with.
How many Facebook friends do you have? The ones that post pictures of their dogs and kids, let you know when they got a new job, what they’re doing this weekend, and when they’re doing the dishes.
Can you tell the difference? Because some people can’t.
Setting the Record Straight on Reforming the FCPA
Since 2010, the US Chamber Institute for Legal Reform and US Chamber of Commerce have led an effort on behalf of the business community to advance modest reforms to the Foreign Corrupt Practices Act (FCPA) – a valuable law enacted in 1977 to reduce corruption in foreign markets by prohibiting U.S. companies and companies operating in the U.S. from paying bribes to foreign government officials for the purpose of obtaining business opportunities abroad. While the basic premise of the FCPA remains as true today as when initially enacted, the statute is long overdue for reform.
Documentary Exposes Exploited Legal System
The U.S. Chamber is applauding a film that documents how the greatest system of justice in the world is being compromised by greed and corruption.
InJustice reveals the history behind America’s “lawsuit industry” and how it had transformed the practice of law from a calling into a multi-billion dollar a year business. The film by award-winning producer Brian Kelly highlights the abuses of opportunistic trial lawyers and reveals how their actions affect the court system, the legal profession, and lawsuit victims.
Third-Party Litigation Financing and the Chevron Case
The massive, long-running litigation against Chevron in Ecuador has long been one of the most prominent transnational tort cases. As was outlined in the U.S. Chamber Institute for Legal Reform’s 2010 report, Think Globally, Sue Locally, these cases are brought against multinational companies for alleged violations of human rights, labor or environmental standards in foreign countries.
Most Ridiculous Lawsuit of the Month - The "Flippin' the Birds" Edition
A few years ago, a group of five peacocks mysteriously arrived in a Michigan neighborhood. No one has ever found where the birds came from, but 80 members of the community recently signed a petition to let them stay. Why the petition now, after years of peaceful squatting? It’s in response to a lawsuit filed by a resident who thinks the birds are a nuisance that have created “dangerous, offensive, or hazardous conditions.”
Restoring Fairness with the Lawsuit Abuse Reduction Act
Most Ridiculous Lawsuit of the Month - The "Coffee or Tea?" Edition
We all have our own preference for coffee. Some of us are happy with a simple cup of joe, while others can’t wake up without a 7-pump soy hazelnut macchiato (or something like that) or have made the jump to Keurig coffee makers. One Illinois woman who made the latter switch isn’t happy about it – and she’s going to court because of it.
InJustice: Real "Reality TV" Exposing America's Lawsuit Crisis
Most Ridiculous Lawsuit from June Announced; Vote Now for the July Nominees
A California mother who sued Chuck E. Cheese’s restaurants alleging that their kids games are an illegal form of gambling has taken first place in the Faces of Lawsuit Abuse June poll looking for the most ridiculous lawsuit of the month.
There is a brand new slate of nominees up for July’s poll, including:
WSJ Article on the Foreign Corrupt Practices Act Misses the Point
Regarding John Bussey’s recent article in the Wall Street Journal, we agree that extending the principles of the FCPA into developing markets is an important goal towards promoting free enterprise. However, we also believe reforming the FCPA will complement those efforts by giving American businesses more certainty to engage even further in these markets. It’s good to set speed limits in school zones, but if you never post what those speed limits ar
Most Ridiculous Lawsuit of the Month – The "Wish I Knew Then" Edition
Miami Herald Burns Hot Coffee, the New Trial Lawyer "Documentary"
The Miami Herald provides a decidedly frigid review of the new HBO film, Hot Coffee: The Movie:
“Oh, boy! HBO is screening a documentary about frivolous lawsuits! This is gonna be great! I bet we’ll get the salacious details of that New York securities trader who sued a Manhattan strip joint after he was accidentally smacked in the eye during a lap dance. No? They couldn’t fit that one in?
Guilt by Association: The New Normal for Federal Agency Enforcement Standards?
Imagine if you were a salesman and you were banned from selling to your largest customers for something your company did, even if you were not found guilty of any wrongdoing and had no knowledge of wrongdoing. Or imagine if you were blacklisted from ever attending any future Redskins games at FedEx Field because you went once with a school reunion group and one of the attendees cursed at a concession stand worker. Sound fair?
Wal-Mart Ruling Reinforces Fundamental Principles of Fairness
Nearly three months after hearing oral arguments, the Supreme Court today handed down a decision in what is without a doubt one of the most important class action cases in more than a decade, Wal-Mart Stores Inc. v. Dukes. The Chamber applauds the Court for affirming that mega-class actions such as this one are completely inconsistent with federal law.
House Hearing: An Important Step Toward Fixing the FCPA
Yesterday’s House Judiciary Crime Subcommittee hearing to examine the Foreign Corrupt Practices Act (FCPA) was an important step toward modernizing the Act, a 34-year-old law that has become a stumbling block for America’s ability to compete in today’s global economy. The FCPA, though well-intentioned, is a relic of a time before globalization transformed the U.S. economy and, until updated, it will continue to hurt U.S. businesses.
Most Ridiculous Lawsuit of the Month – The "I Don't Remember It, But It Must Be Your Fault" Edition
Gas Prices, Lawsuits, and Taxes
Yesterday at America’s Small Business Summit, a trio of U.S. Chamber senior executives weighed in on three issues that are keeping small business owners up at night.
Most Ridiculous Lawsuit of the Month – The "Dangerous 'Danger' Sign" Edition
What's Old is New Again: Problematic Jackpot Asbestos Verdicts
Class Actions: A Distortion of Justice and Continued Threat to America's Prosperity
Recent class action reforms, such as the Class Action Fairness Act of 2005, have helped the class action system in some ways. But the process continues to be severely abused by elements of the plaintiffs’ trial bar, who use the class action legal mechanism to join together large and diverse groups of claimants as
House Committee Takes Step Toward Meaningful Medical Liability Reform
N.Y. Attempts to ‘Legislate Fun’
Just in time for summer camp season, N.Y. health officials have proposed a list of iconic kids’ games, such as Red Rover and tag, that pose “a significant risk of injury.” Camps where these games are played would be required to pay a $200 registration fee and have medical staff on hand. The N.Y. Health Department created the list of risky recreational activities in response to a state law passed in 2009 that has yet to be implemented.
Source: FOXNews.com, April 19, 2011
Take a Stand to Keep the Wrong Man from Sitting
Never in the nearly century-long history of the U.S. Chamber have we opposed a federal district court nominee. But never have we encountered someone quite like John J. “Jack” McConnell.
Take a Stand to Keep the Wrong Man from Sitting
Never in the nearly century-long history of the U.S. Chamber have we opposed a federal district court nominee. But never have we encountered someone quite like John J. “Jack” McConnell.
Supreme Court Deals a Blow to Trial Lawyers
Businesses that use consumer friendly arbitration clauses in their contracts may face fewer class-action lawsuits due to a recent ruling by the U.S. Supreme Court in a case supported by the U.S. Chamber.
Most Ridiculous Lawsuit of the Month – The 'Two Left Feet' Edition
Most Ridiculous Lawsuit of the Month – The 'Class(room) Action' Edition
Most Ridiculous Lawsuit of the Month – The 'Deep Pockets' Edition
Jack McConnell: Not Fit for the Bench
It’s been no secret that the U.S. Chamber of Commerce has taken the unprecedented stance of opposing U.S. District Court nominee John “Jack” McConnell.
Pepperdine Transnational Litigation Conference
Lawyers Gone Wild
Are more lawsuits the answer to our sluggish economy? Certain trial lawyers seem to think so. They are working hard to make lawsuits a growing and thriving industry. They are exhibiting the same zeal, entrepreneurialism, and creativity as the small business innovators who are leading our economic recovery. The difference is that lawsuits undermine businesses of all sizes, our competitiveness, and our economic recovery.
Lawyers Gone Wild
Are more lawsuits the answer to our sluggish economy? Certain trial lawyers seem to think so. They are working hard to make lawsuits a growing and thriving industry. They are exhibiting the same zeal, entrepreneurialism, and creativity as the small business innovators who are leading our economic recovery. The difference is that lawsuits undermine businesses of all sizes, our competitiveness, and our economic recovery.
McConnell Unqualified for the Federal Bench
Today’s divided Senate Judiciary Committee vote advancing the Jack McConnell nomination for a judgeship on the U.S. District Court in Rhode Island underscores the strong concern that many have with this troubled judicial nominee.
Real Estate Is Top PPD Legal Services Request
For the second year in a row, real estate issues was the leading nationwide service request among legal service plan members of Pre-Paid Legal Services, Inc., in 2010.
The 342,000 requests for the real estate-related legal service inquires represented approximately 16.2% of the total estimated 2.1 million legal service requests for 2010.
The other top five legal service requests were:
New York Times Details Explosion of Lawsuit Lending Bills

The New York Times has a story in Thursday’s paper about attempts in multiple states to expand the availability of lawsuit lending.
The Economist Clarifies Who is the Victim
Don’t tell Scott Pelley, but the letters section of this week’s Economist finally clarifies the real victim when an Ecuador court slapped Chevron with a $9.47 billion fine last month.
The Impact of State Employment Policies on Job Growth: The 'Main Thing'
Great event this morning here at the Chamber, featuring Mississippi Governor Haley Barbour. The occasion was the roll-out of a groundbreaking study by the Workforce Freedom Initiative (WFI) entitled, “The Impact of State Employment Policies on Job Growth: A 50-State Review.” Gov.
Mom Punished for Escaping Bad Schools
An Ohio mother’s attempt to provide her daughters with a better education landed her behind bars. In January, Kelley Williams-Bolar was convicted of lying about her residency to get her daughters into a better school district. She registered her daughters using her father’s address in a township nearby after her apartment was burglarized. She served 10 days in jail and was put on three years’ probation.
Source: ABC News, January 26, 2011
1099 Repeal, Medical Liability Bills Advance
Bills to repeal an onerous reporting mandate and reform the medical liability system each moved one step closer to a full vote after passing out of their respective House committees. The U.S. Chamber supports both bills.
The House Ways and Means Committee unanimously approved a bill to repeal a health care reform law requirement that employers submit 1099 statements for all business cash purchases of over $600. The measure, HR 4, now goes to the full House.
House Committee Approval of Medical Liability Reform a Welcome Beginning
Yesterday, the House Judiciary Committee approved comprehensive medical liability reform legislation. The legislation – H.R. 5, the Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act – was approved by a vote of 18 to 15 and now goes to the full House of Representatives for consideration.
Shakedown in Ecuador Shakes our Legal Foundation
There’s a great international shakedown taking place south of the border with this week’s $8.6 billion judgment against Chevron by a provincial court in Ecuador. The suit, filed in an Ecuadorian court in 2003, charges that Texaco (since merged with Chevron) failed to clean up oil spills from wells it drilled in the 1970s, and thus should be liable for as much as $113 billion.
Litigating the Fun Out of Childhood
The school system in Cabell County, West Virginia, removed swing sets from all school playgrounds due to lawsuit fears. The decision came after the school district faced two different lawsuits from the same parent over minor injuries suffered by his two kids in separate incidents on a school playground. “We’re disabling our swings to keep us out of the courtroom,” says Cabell County Schools Superintendent William Smith.
Source: FacesofLawsuitAbuse.org, December 16, 2010
Driving the Day 1/27/2011
President Obama is Right to Consider Medical Malpractice Reform
Earlier this week, as part of his annual State of the Union address, President Obama expressed his willingness to work with Congress to pass medical malpractice reform legislation in 2011. He now joins with many members of the new Congress who are already committed to reforming America’s broken medical liability system.
U.S. Chamber Names Most Ridiculous Lawsuits of 2010
A lawsuit against Oprah and President George W. Bush alleging that they implanted a camera into a woman with the intention of reincarnating her tops the U.S. Chamber Institute for Legal Reform’s (ILR) list of most ridiculous lawsuits of 2010 as chosen by respondents to the Most Ridiculous Lawsuit of the Year Poll.
U.S. Chamber’s ILR Shines Spotlight on Lawsuit Abuse
On the heels of a new annual report that finds that lawsuit abuse is widespread, the U.S. Chamber of Commerce’s Institute for Legal Reform (ILR) has unveiled two more stories for its Faces of Lawsuit Abuse public awareness campaign.

“Everyone deserves their day in court,” says Steve Arnold, the owner of Peachtree Pest Control in Loganville, Georgia. “But when is enough, enough?” Photo: Courtesy of ILR
Lawsuits Take School's Swing Sets Away From Kids
by Mike Lepage
Everyone has favorite childhood memories. For many people, those memories include rolling down slides, dangling off of monkey bars and swinging on swing sets at their local neighborhood playground.
Report Shows Lawsuit Abuse is a Widespread Problem
I commend the American Tort Reform Association for shining a spotlight on some of the nation’s most troublesome jurisdictions for lawsuit abuse with their release of the Judicial Hellholes 2010/2011 report. This report outlines many problems in these jurisdictions and should serve as a reminder to courts and state legislatures of the continued need for action.
Family Business Wins Same Lawsuit Twice, Now Faces It For the Third Time
by Mike Lepage
“Everyone deserves their day in court,” says Steve Arnold, the owner of Peachtree Pest Control in Loganville, Georgia. “But when is enough, enough?”
Trial Bar Seeks New Opportunities
ILR, Chamber to Fight Liability-Expanding Efforts
Having lost major battles to pass liability-expanding legislation in Congress, the trial bar is shifting its focus toward a new front—the federal regulatory agencies.
Trial lawyers are lining up to influence the implementation of the complicated health care and financial regulatory reform laws to ensure that the regulations are written to create more opportunities for lawsuits. Agencies have been given wide latitude to determine the details of the two laws, as well as unprecedented enforcement authority.
Voters Urge Congress to Rein in Organized Labor, Lawsuit Abuse
Voters in last week’s midterm elections want the next Congress to advance legal reform and rein in organized labor, according to survey data released by the U.S. Chamber of Commerce.
A national survey by the Chamber’s Institute for Legal Reform (ILR) reveals that 88% of voters who cast ballots in last Tuesday’s election believe that there are too many “meritless” lawsuits. Eight in ten voters said that they want Congress to continue reforming the legal system.
October Most Ridiculous Lawsuit Poll – The ‘Price of Beauty’ Edition
Neanderthal Man gave way to Cro-Magnon Man, who gave way to Modern Man, who gave way to The Metrosexual Man – the species of man that routinely gets his hair styled, spends more time shopping than ever before, and is no stranger to the G-T-L.
September Most Ridiculous Lawsuit Poll – The ‘Suing the Victim’ Edition
Some ridiculous lawsuits are funny. Others are anything but.
After a fight with her boyfriend, a teenage girl sent him several text messages, including ones that said “Good bye … My last words …” and “If I won. I would have you. And I wouldn’t crash my car.” She then proceeded to drive her car into oncoming traffic at 85 mph, killing a 35-year-old pregnant woman and the woman’s 13-year-old son.
The September Most Ridiculous Lawsuit of the Month: The ‘Frivolous Facebook Lawsuits' Edition
Most users of Facebook, the online social networking service, are familiar with the ubiquitous "like" button, which allows users to publicize their approval of a friend's status message, a certain musician, a movie, a commercial product, or anything else that has a Facebook presence (which is just about everything).
U.S. Courts Should be Reserved for U.S. Cases
To most people, the notion that a country’s legal system should only decide cases regarding actions occurring in that country is common sense. After all, when an American tourist visiting Great Britain gets in trouble with the law, their case is handled by British courts, not American courts. Conversely, when a British tourist gets in trouble in the U.S., their case is handled by U.S, not British, courts.
Employment Litigation and Legal Reform
The Wall Street Journal’s Law Blog gives advice to those fresh out of law school: “Forget bankruptcy law. That’s so 2009. Employment litigation is where it’s at.” The career guidance is based off recent reports showing that employment discrimination lawsuits are “through the roof.” The WSJ’s Nathan Koppel writes:
September Most Ridiculous Lawsuit Poll – The "Video Games Kept Me From Bathing" Edition
I admit it! In college I occasionally stayed up too late playing video games instead of studying. And, more recently, my dog’s patience and bladder have been taxed waiting for me to complete a level of Halo or finish a quick game of Madden. But I never took my video game obsession as far as this guy, a Hawaii man who is suing the makers of the videogame Lineage II for causing an addiction that he says ruined his life.
Small Businesses on the Economy, Lawsuits, Government
ILR has released a national bipartisan poll of small business owners this morning with some sobering results:
$55 billion is "practically nothing"?
Earlier this week, the respected medical journal Health Affairs published a study that estimates the negative cost of America’s broken medical malpractice system at $55.6 billion a year. By any measure this is a huge number, greater than the combined 2009 budgets for the Departments of Commerce, Interior and State and the entire legislative and judicial branches. It’s also greater than the cost of 270,000 houses at the current U.S. median price for new homes.
September Most Ridiculous Lawsuit Poll – The “All the Tea in China” Edition
Not content with merely suing for all the tea in China, a Las Vegas man recently brought a lawsuit against a law firm for $38 quadrillion dollars. For those keeping score, only $24 trillion is in current circulation … not just in the U.S. but in the entire world. So, regardless of the merits of the case, one plaintiff in this month’s Most Ridiculous Lawsuit Poll is literally suing for more than all the money in the world.
But let’s quickly take a look at the lawsuit itself.
Tort Costs Exceed $100 Billion
Although small businesses are touted as the economic engines driving job creation, they disproportionately bear the brunt of the nation’s tort costs, impairing their ability to thrive and grow, according to research released by the U.S. Chamber Institute for Legal Reform (ILR).
Businesses with $10 million or less in annual revenue paid $105.4 billion in tort liability costs in 2008, a study by ILR and NERA Economic Consulting points out. Some $35 billion of those costs were paid for out of pocket, not covered by insurance.
Most Ridiculous Lawsuit of the Month -- August Poll
It's that time again. Unfortunately, last month again saw some pretty crazy lawsuits. Which one do you think was the most ridiculous? Vote here. And see previous polls.
California Supreme Court Decision will Help Contingency Fee Lawyers at the Expense of the State
Yesterday’s decision by the Supreme Court of California in County of Santa Clara v. Superior Court (Atlantic Richfield Co) to allow government entities to partner with private lawyers in contingency fee lawsuits will not only result in more litigation, but will further burden the state’s ability to create jobs and emerge from its worst economic situation since the Great Depression.
Call It the ‘Incumbent Protection Act’
A bill to limit the business community’s First Amendment rights is being hailed by Democratic leadership as legislation that “will make [corporations] think twice” before attempting to influence election outcomes. Sen. Charles Schumer (D-NY) admitted that the bill is designed to “impact” this fall’s elections “as much as possible.”
Sources: The Wall Street Journal, February 12, 2010
Politics Daily website, April 29, 2010
McConnell is Unqualified to Sit on the Federal Bench in Rhode Island
Lisa Rickard, president of the Institute for Legal Reform, has this op/ed in the Providence Journal today:
Rhode Island Personal Injury Lawyer Is Unqualified to Serve on the Federal Bench
The United States Senate Judiciary Committee should reject the nomination of John J. ‘Jack’ McConnell for a judgeship on the U.S. District Court in Rhode Island.
Most Ridiculous Lawsuit of the Month Poll - May 2010 Edition
Last month saw some pretty crazy lawsuits. Which one do you think was the most ridiculous?
Frivolous Litigation and the EEOC
On Monday the U.S. Chamber filed comments in response to the Equal Employment Opportunity Commission’s (EEOC) proposed rulemaking to define an important employer defense under the Age Discrimination in Employment Act (ADEA).
America Needs More Jobs, Not More Lawsuits
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By Tom Donohue, President and CEO, U.S. Chamber of Commerce |
As policymakers consider ways to put Americans back to work, they should keep this simple formula in mind: more lawsuits equals less job growth.
Florida - Let the Sunshine In
Today with the signing of the Transparency in Private Attorney Contracting Act (TPAC) the Sunshine State becomes a model to the nation. This law will shine a much-needed light on the process that Florida attorneys general must follow when they hire private plaintiffs’ law firms under a contingency fee arrangement to sue on behalf of the state. Florida’s Attorney General Bill McCollum in particular deserves credit for his aggressive pursuit of this law.
State Legal Climates Ranked
Two-thirds of more than 1,400 top corporate lawyers and executives surveyed by the U.S. Chamber Institute for Legal Reform (ILR) say that a state’s lawsuit environment is likely to impact business decisions, including where to locate or expand operations. That is up 10 percentage points from just four years ago.
“With a national unemployment rate of 9.7% and record-high jobless rates in states like California, states can no longer afford to discourage new businesses and new jobs as a result of a dysfunctional legal climate,” says ILR President Lisa A. Rickard.
Sue, Britannia
Wanted to share a piece I have in the Wall Street Journal today on a new law which could open the floodgates to class actions in the U.K.
The Health Care Reform Platter with a Tort for Dessert
In the clip below CNBC's Jane Wells talks to Madelyn Alfano, owner of a nine-restaurant chain and board member of the California Restaurant Association, about the health care reform bill's calorie count requirement and other concerns:
ILR Survey Finds State Legal Climates Hinder Job Growth
Two-thirds of more than 1,400 top corporate lawyers and executives surveyed by the U.S. Chamber Institute for Legal Reform (ILR) say a state's lawsuit environment is likely to impact business decisions, such as where to locate or expand operations. That is up ten percentage points from just four years ago.
The Supreme Court and Federal Jurisdiction Law
Today’s unanimous Supreme Court decision in Hertz Corp. v. Friend overturned a controversial Ninth Circuit test for determining a multistate corporation’s citizenship. The Court ruled that for diversity jurisdiction purposes, a corporation is a citizen of the place where its headquarters is located.
Lawsuit Abuse Obstructs Job Creation
Leave it to the plaintiffs' trial lawyers to add insult to injury. While American businesses and families spent 2009 coping with the effects of a severe recession, the plaintiffs' bar was hard at work bringing a whole new round of outrageous lawsuits on behalf of clients hoping to get rich quick by winning the litigation lottery. To chronicle some of the most egregious lawsuits, the U.S.
Lawsuit Abuse Obstructs Job Creation
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By Tom Donohue, President and CEO, U.S. Chamber of Commerce |
On the Docket: Legal Reform
U.S. Chamber Fights Litigation Abuse
The final piece in our yearlong series on the U.S. Chamber’s policy agenda examines efforts to fight for business in the courts, rein in lawsuit abuse, and create a legal system that is simpler, faster, and fairer for everyone.
The Challenge—Business at Risk
Meet the Carbon Tort
Woman Claims Repair Notices Caused Emotional Damage
Vytas Juskys and his small business manage apartment buildings and are committed to constantly upgrading and making repairs to the homes of the tenants. He thought that improving their apartments and the common areas would help his residents love where they lived; he never expected that one of them would thank him with a lawsuit. Juskys was in the process of improving an apartment complex he had just acquired when he learned he was being sued.
Poll: Most Ridiculous Lawsuit of 2009
2009 saw some pretty crazy lawsuits and it is hard to pick just one, below are the monthly winners of our Most Ridiculous Lawsuit of the Month polls. Jump over to FacesOfLawsuitAbuse.org to read the stories and get your vote on.
Michigan Man's 24th Lawsuit Threatens Family Business
Climate Change Fuels New Lawsuits
No Relief in Sight on Medical Liability

"People make decisions every day about which states and communities to invest in, and business climate truly matters."
--Jeb Bush, former Florida governor, speaking at ILR's 10th Annual Legal Reform Summit
The Health Care Tort Bomb
The Wall Street Journal takes over from Cato and the National Review:
Doctors on the Defensive
Kneecapping Medical Liability Reform
The Wall Street Journal opines on the Pelosi health reform bill:
Jeb Bush on Being a Competitive Country
On Wednesday former Florida Governor Jeb Bush addressed ILR 10th Annual Legal Reform Summit. Here is what he had to say:
Jobs, Not Lawsuits
When making any decision that impacts our civil justice system, our leaders should ask themselves one fundamental question: ‘Will this help put people back to work, or will this seed the ground for more job-killing litigation?’ As elected officials, they are entrusted with pursuing policies that help revitalize the economy and bring back the jobs that have been shed across the country. The American people expect them to live up to this obligation.
CBO Score Proves Medical Liability Reform Savings are Real
From the Washington Post yesterday:
Lawmakers could save as much as $54 billion over the next decade by imposing an array of new limits on medical malpractice lawsuits, congressional budget analysts said today -- a substantial sum that could help cover the cost of President Obama's overhaul of the nation's health system.
Listen to Voters - Include Medical Liability Reforms
As Congressional members witnessed first-hand during their August town hall meetings, the American people overwhelmingly support medical liability reform as a way to reduce costs and improve the quality of care. Unfortunately, as this debate approaches the finish line, it seems that the trial lawyer lobby is cashing in all its political chips to retain the status quo.
Court Docket to Impact Business
The National Chamber Litigation Center (NCLC), the legal arm of the U.S. Chamber, is looking to influence the U.S. Supreme Court's decisions on a number of business-related cases. The court term began October 1.
"This is going to be a significant term for the business community," says Robin Conrad, NCLC's executive vice president. "We were involved in 10 business cases before this term even started, compared to 14 cases for the entire 2008 term." Conrad notes that, on average, nearly half of all Supreme Court cases have implications for business, including smaller firms.
State Attorneys General and the CFPA
While the Chamber has a number of serious concerns about the proposed Consumer Financial Protection Act, not least among them is the probability of increased litigation from some state attorneys general, who, with new federal authority to enforce the CFPA, will be hiring private plaintiffs' lawyers on contingency fee contracts. Congress should adopt legislation that would mirror the current private attorney retention rules applicable to federal agencies by barring state or local government use of contingency fee arrangements to enforce the CFPA.
How Missouri Cut Junk Lawsuits
Former Missouri Governor Matt Blunt shows Congress how to do malpractice reform in the Wall Street Journal:
A Comprehensive Solution on Medical Malpractice Still Necessary
President Obama plans to authorize demonstration projects in states to test potential medical malpractice reforms which is an encouraging acknowledgement of the problem of medical liability lawsuits. While his demonstration program might be a step in the right direction, the devil is in the details.
Encouraging Meaningful Medical Liability Reform
Earlier today White House Press Secretary Robert Gibbs reported that President Obama will address medical liability reform in tonight’s speech to Congress. We are encouraged that President Obama understands the tremendous burden that medical malpractice lawsuits place on the nation’s health care system, and are hopeful he will propose meaningful reforms tonight to limit the impact of these lawsuits on patients, taxpayers, and medical providers.
Trial Lawyer TV Ads for MedMal Lawsuits Grew 1400%
In August, former Vermont Governor and Democratic National Committee Chairman Dr. Howard Dean made a telling statement when he answered a question at a Congressional town hall meeting about the lack of medical liability reform in the current healthcare reform proposals. Dean responded, "The reason that tort reform is not in the bill is because the people that wrote it did not want to take on the trial lawyers in addition to everybody else they were taking on, and that is the plain and simple truth."
Who Really Speaks for Consumers in the Arbitration Debate?
New developments in consumer arbitration shed light on true motives of ‘consumer advocates' and their pact with the plaintiffs' bar.
Bank of America, the nation's largest bank, this month made a watershed change in how its millions of customers resolve their disputes when it eliminated arbitration clauses from their credit card contracts.
Health Reform - Time for Trial Lawyers to Step Up
Bob Beckel takes on health reform's taboo topic, partly for the wrong reasons, but hey, we'll take it:
Reading List - 13 August 2009
Overturning Stoneridge is Not Stimulus
Facing a surprising primary challenge from Joe Sestak, Senator Arlen Specter is seeking to gain some Dem street cred by introducing pro-litigation legislation to overturn the U.S. Supreme Court's decision in Stoneridge Investment Partners v. Scientific-Atlanta, Inc., which halted the expansion of securities liability cases through the theory of "scheme liability." To the dispatches:
S. 540 - The So Called "Medical Device Safety Act"
Seven quotes from two letters:
Health Reform - We Are All In This Together, Right?
Senator Mitch McConnell thinks something's missing:
Reading List - 29 July 2009
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Captive To Corn – This post reminded me of a pundit who quipped during the Waxman-Markey debacle that "Congress would vote for a bill appointing Satan as dictator if it included more farm subsidies."
"Pay to Play": The Plaintiffs' Lawyer Scandal that Shouldn't be Ignored
This week, the trial lawyer "pay to play" scandal continues to unfold, ratcheting up the public attention and the impetus for Congress and the S.E.C. to act.
Reading List - 28 July 2009
July Most Ridiculous Lawsuit Poll: The "How Dare You Have the Same Name as I" Edition
My name is Bryan Quigley. Growing up in Springfield, Missouri, I was the only "Bryan Quigley" I knew. But now, thanks to instant information available on the Web and the explosion of social networking Web sites, I realize my name is not as unusual as I once assumed.
June Most Ridiculous Lawsuit Poll – The "It’s Good to Have a Hobby" Edition
To kill time in jail, some prisoners take up a hobby. In "The Shawshank Redemption," Andy Dufresne carved rocks into chess pieces. Paul Newman’s character in "Cool Hand Luke" plotted and attempted numerous escapes from prison. And in "The Longest Yard," Burt Reynolds put together a team of inmates to take on the guards in a game of football.
A New Prescription for Health Care
President Obama was warmly received by members of the AMA yesterday in a speech focused squarely on health care reform. The president blamed some of the spiraling costs of health care on a reimbursement system that he said pays for the number of tests and services provided, regardless of what is needed.
Sunday Video: Highlighting the Faces of Lawsuit Abuse
For months, the Chamber's Institute for Legal Reform has been highlighting the impact of frivolous lawsuits on individuals and small businesses through their Faces of Lawsuit Abuse Web site. Recently, to further help get the message out, some of the lawsuit story videos have been running in movie theaters around the nation before the features. Lisa Rickard, the president of the Institute, appeared on MSNBC's Your Business to discuss the program.
They Sue - Everyone Pays
Sunlight continues to pour on many state attorneys general and their collusion with the trial bar on pay-to-sue schemes. What is pay-to-sue? The Wall Street Journal explains:
A Trial Lawyer Ticket to More Lawsuits
The White House has issued a memo curtailing federal preemption of state laws in federal agency regulations, and requiring a review of preemption in all federal regulations over the past ten years (see Robin's post). There is little debate that the consequence of this is more lawsuits.
Not So Fast: Trial Lawyers Lobby For Their Own Federal Bailout, But the Constitution Stands in the Way
Yesterday, at the urging of lobbyists for the plaintiffs bar, President Obama ordered federal agencies to review a decade’s worth of regulations, to strip out "preemption" language that set a single, national regulatory standard for myriad consumer products.
'Sterile' Men Fathering Children? Bribes? Corrupt Lawyers? Another Plaintiffs' Lawyer Fraud; Another Judicial Hero
Yesterday's Wall Street Journal editorial, 'A Blatant Extortion,' highlights the latest judicial hero, Los Angeles Superior Court Judge Victoria Chaney. Her ruling to dismiss a lawsuit against Dole Food Company had it all—corrupt Nicaraguan judges and lawyers working in cahoots with U.S.
SB Summit - Faces of Lawsuit Abuse
Heading in to the evening reception Bryan Quigley briefed the crowd on the Institute for Legal Reform's "Faces of Lawsuit Abuse" program. ILR is ten years into their mission to achieve a fairer, faster, and simpler legal system -- Faces is the latest project in that campaign.
Mother's Day and Legal Reform
Happy Mother's Day to all the Moms out there. If you want to take in a movie today I hear the new Star Trek is quite good. In D.C. the inaugural, bipartisan, "Politics on Film" festival is going on; you can see "The Reckoning" and get caught up on the actions of the International Criminal Court, exciting stuff.
Pandemic Planning in a Litigious Society - A Primer
It is truly sad that I must post this, but, as noted below, the legal landscape is not going away just because there is a possible pandemic. Here is a helpful primer from McKenna Long & Aldridge, a member of the Chamber's National Security Task Force. I suppose that I also must note that this is for educational purposes only. Here is the guide:
H1N1 FLU AND PANDEMIC PLANNING: ACTIVE PARTICIPATION IS CRITICAL
It's 4th and Goal for Florida's Landmark Contingency Fee Reform Legislation
Man Sues Over Bathroom Hit and Run
A Florida man is suing Lowe's Home Center for injuries he sustained because of a faulty bathroom stall lock. According to the lawsuit, Tommy Rassier was about to sit down when a person unknown to him pushed open the stall door knocking Rassier "in the head and neck," and pushing him "back into and against the toilet." Rassier faults Lowe's for not fixing the broken lock.
Source: The Tampa Tribune, Feb. 9, 2009
A Call To Investigate and Prosecute Widespread Fraud in Asbestos Litigation
Earlier this week I sent a letter to Attorney General Eric Holder highlighting widespread evidence of asbestos litigation fraud and the necessity of immediate and serious intervention. To protect the integrity of the U.S.
Legal Reform - Mass Action in Louisiana
by Lisa Rickard
Legal Reform - Profiles in Resignation
To pick one antonym of courage, you can read the below and pick your own, from the Washington Examiner (h/t pointoflaw):
Plaintiffs' Bar's Quest for Cash Could Leave Employees High and Dry
On Wednesday the National Chamber Litigation Center filed an amicus brief in a controversial class action lawsuit against perhaps the largest 401(k) plan in the country. Wal-Mart's 401(k) plan hold about $10 billion in savings for its nearly 1 million employee participants.
A Significant Step Toward Fairness, Rationality in Asbestos Litigation
Today, the Illinois Supreme Court took a significant step toward bringing some common sense to the asbestos litigation quagmire that's bogging down our court system.
Corporate Criminal Law
If you are (in/near/able to travel to) D.C. next Tuesday, April 21st, and are interested in Achieving the Right Balance: The Role of Corporate Criminal Law in Ensuring Corporate Compliance you certainly will want to register for the Corporate Criminal Law Conference at Georgetown University Law Center; to hear an impressive list of speakers including:
The Takings Clause
Yesterday, the Washington Post carried an op/ed by George Will condemning a radical legal decision by the Illinois Supreme Court that allows the government to transfer income from a business to other projects, in violation of the Constitution's "Takings Clause." Will rightly observed that the Illinois Supreme Court's decision invites all sorts of political mischief, including ‘predatory taxation' – schemes that take money from disfavored businesses and transfer that money to p
Most Ridiculous Lawsuit Winner: A Dubious Distinction
Over the past six months, visitors to ILR’s website FacesOfLawsuitAbuse.org have been invited to vote on the "Most Ridiculous Lawsuit of the Month." Past "winners" have included: a man who sought $2 billion in damages from companies over their alleged use of brain-wave control, satanic rituals and witchcraft; an eBay seller who sued his customer ove
Contingency-Fee Justice
A case study from the Wall Street Journal:
Justice Served in Fen-Phen Finagle
Last Friday William Gallion and Shirley Cunningham Jr. were found guilty of stealing millions of dollars from their own clients in a Fen-Phen case in Kentucky.
The Phony Litigation Machine Grinds On
The Wall Street Journal asks a good question "Where's the enforcement follow-up?"
Reducing the Randomness of Medical Liability
In an April 2nd op-ed in the New York Times, Philip Howard, who is the chairman of Common Good (a legal reform group), talked about creating health courts. The Chamber has for some time been intrigued by the idea of reducing the randomness of medical liability cases by removing them to special courts, the same way we do with banking and admiralty cases.
Lawsuit Abuse - Getting Fried in California
In the restroom of a family-owned restaurant in Southern California, employees replaced a mirror that had been destroyed by vandals. Since the new mirror was two inches shorter than the old one, it was hanging two inches too high to satisfy disabilities regulations and standards. Once he was notified of the mistake, restaurant owner Ron Piazza immediately lowered the mirror. But it was already too late. Piazza's restaurant was sued. The plaintiffs are alleging that the height of Piazza's mirror inflicted damages each time they visited – for a total of 27 incidents in a three month period.
Our Lawsuit-Happy Culture
When a man turned suddenly while skiing in front of seven-year-old Scott Swimm, Scott slid over the man's skis to avoid a bodily collision, and the two skiers tipped over. Several months later, Scott was personally served with lawsuit papers, triggering a legal battle that forced the boy to be deposed by a team of plaintiffs' lawyers. The Swimms were eventually forced to settle due to the cost and emotional toll of continuing to fight the lawsuit.
ILR ‘Faces of Lawsuit Abuse’ Campaign Hits the Silver Screen
Now playing at a theater near you–videos featuring everyday Americans who have been victimized by abusive or frivolous lawsuits. The trailers will run before feature movies in theaters throughout the month of May.
The series of two-minute videos were produced by the U.S. Chamber's Institute for Legal Reform (ILR) as part of "Faces of Lawsuit Abuse" — a multimillion-dollar national TV, Internet, and radio ad campaign.
Doctors & Scientists Versus Juries & Lawyers
The message from industry to Congress on setting standards for the safety of medical devices:
As we collectively seek to restore our economy to strong fiscal health, we are especially concerned about efforts to devolve regulatory authority to state tort systems.
Vote for the Most Ridiculous Lawsuit of the Month
By now, everyone has heard the one about the D.C. judge who sued his dry cleaners for $54 million for allegedly misplacing his pants. Unfortunately, ridiculous lawsuits targeting small businesses and average families are all too common – and a sign of a lawsuit system run amok.
Read Before Burning Consumer Arbitration
Over the past few sessions of Congress, those that favor more lawsuits, with the help of the American Association for Justice (formerly known as the Association of Trial Lawyers of America) have pushed bills that would effectively wipe out arbitration.
More on Consumer Arbitration
As Congress once again attempts to pass legislation that would potentially nullify hundreds of millions of arbitration agreements in consumer contracts, they should carefully review the mounting evidence that verifies the benefits of arbitration.
This week, the Searle Civil Justice Institute, a unit of the Northwestern University School of Law, released an independent study confirming that the 84-year old arbitration system remains a fair, inexpensive and unbiased option for millions of American consumers.
Consumer Arbitration - Fair and Cost-Effective
The Searle Civil Justice Institute at Northwestern University School of Law has released a study today on "Consumer Arbitration Before the American Arbitration Association." Their findings help prove that arbitration continues to provide consumers with fair, inexpensive, and unbiased access to justice across the broadest spectrum of consumer disputes.
Throwing the Economy Under the Omnibus
Inclusion of the provision in the federal Omnibus Appropriations Act of 2009 authorizing state attorneys general to enforce the federal Truth-In-Lending Act with private civil lawsuits will create a patchwork quilt of conflicting authorities and interpretations of federal laws dealing with home loans and other types of consumer finance transactions.
Trial Bar Flexes Political Muscle
Business Must Keep Eye on the Ball
Donald J. Shepard
Chairman of the Board
U.S. Chamber of Commerce
Reading List - 17 Feb 2009
- Attack of the trial lawyers - h/t and more the Maryland Chamber Action Network
Trial Lawyers Get Early Victory
Chamber, Business Prevent Worst Case Scenario

Trial lawyers wasted no time launching an opening salvo in the new Congress by pushing through legislation to expand frivolous litigation against employers.
Death Tax Seeks Resurrection
Scheduled Repeal in 2010 Would Be Overturned
The U.S. Chamber is working to derail a proposal by the Obama administration and congressional leaders to permanently lock in the estate tax, also known as the death tax, instead of allowing it to expire as scheduled in 2010.
E-Verify Faces Court Challenge
U.S. Chamber Leads Business Groups in Lawsuit
The U.S. Chamber filed a lawsuit to stop the federal government's voluntary employee verification program from becoming mandatory for government contractors.
"This massive expansion of E-Verify is not only bad policy, it's unlawful," says Robin Conrad, executive vice president of the National Chamber Litigation Center (NCLC), the Chamber's public policy law firm. "Federal law explicitly prohibits the secretary of Homeland Security from making E-Verify mandatory or from using it to reauthorize the existing workforce."
Lawsuit Hungry Hungry HIPAA
In a letter to the Senate today I urged for the elimination from the stimulus package a provision in both the House and Senate proposals that give state attorneys’ general, working with private plaintiffs’ lawyers, broad authority to bring civil lawsuits.
Stimulus Bill Signed into Law
No, not the one for America's businesses and workers, the one for trial lawyers. We have written about the problems with the Ledbetter case and the Ledbetter bill many times (first one, last one), so we will let Karen Lee Torre, a plaintiff-side employment litigator explain:
Business and the Roberts Court
The Volokh Conspiracy has a series of posts about a conference at Santa Clara Law called "The Roberts Court and Big Business." Robin Conrad from the National Chamber Litigation Center participated in the conference and many of the panelists relied on the Chamber's record before the Court to examine the question of why the Court seems to be receptive to business interests.
All Hail the Engineers
Henry Petroski today in the Washington Post:
Fairness Yes - These Bills No
by Tita Freeman
As I’m sure you have heard often in both the soft concerned tones normally associated with NPR and in bombastic admonishments normally reserved for war crimes tribunals women make 77 cents for every dollar a man makes. Outrageous right!
That two people born on the same day, with the exact same education and skill set, working side by side doing exactly the same tasks, working exactly the same hours, with equal levels of competence and performance would get paid differently just because one is a woman.
Ledbetter Act a Lead Balloon
The theory and application of statues of limitations, from Hawaii:
Trial Lawyer Stimulus
Only a few days into the new Congressional session, the plaintiffs’ lawyers wasted no time in issuing their wish list for 2009. While the U.S. Chamber of Commerce supports President-elect Obama’s efforts to revitalize the economy and put people back to work, America’s plaintiffs’ lawyers instead want the new Administration to help them bring more lawsuits and create a new White House ‘Lawsuit Czar.’ As we deal with the financial crisis, now is not the time to place a greater drag on the economy by expanding our nation's lawsuit system.
You Pick – Doctors or Lawyers
Litigation-Producing Bonanzas
Trust and the Legal System
USA TODAY examines the Massachusetts Medical Society's examination of the high cost of "defensive medicine" (h/t PointofLaw):
Economic Stimulus for Trial Lawyers
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Faces of Lawsuit Abuse
U.S. Chamber Tells Small Business Stories
The stories of frivolous lawsuits impacting mom-and-pop businesses have largely gone untold-until recently. A Web site of the U.S. Chamber Institute for Legal Reform features stories of lawsuit abuse that have damaged the bottom line and reputations of small businesses and forced layoffs. Read more stories or tell yours at www.facesoflawsuitabuse.org.
Same Tired Song from a Trial Lawyer
"Legal analyst" for CBS News Andrew Cohen posted a rather unremarkable article over the weekend. He feels that the entire financial markets mess could have been avoided if only we had more lawsuits. Wow! A stunning conclusion from a former trial lawyer -- sue, sue, sue!
Denial of New Trial in the $54 Million Pants Lawsuit a Breath of Fresh Air
A Pop Fly and a Legal Strikeout
Here is one story, you can find more, unfortunately, at FacesOfLawsuitAbuse.org:
Jackpot Jurisdictions a Judicial Hell
The American Tort Reform Association (ATRA) has released the 2008/2009 edition of Judicial Hellholes which reveals that lawsuit abuse remains alive and well in many jackpot jurisdictions.
Kath and Kim and Lawsuit Abuse
If you found the real life examples from Lisa's post on FacesOfLawsuitAbuse.org too depressing, you can check out the secondary story arc from last night's "Kath and Kim"
Best lines:
When the Faces of Lawsuit Abuse Look a Lot Like You
"The way you run your business—you start to second guess how you do business, because you're worried about the next lawsuit. And that's not the way to run a company." – Howard Weiss
You Can Still Smell The Stupid
Over on FacesOfLawsuitAbuse.org you can vote for November's most ridiculous lawsuit, and the choice is, apparently, tougher than I thought:
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A city employee who sued over a co-worker’s perfume.
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The Canadian court ruling giving obese people two seats for the price of one.
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The man who sued corporations accusing them of brain control.
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The admitted hacker who sued the school that suspended him.
How Dare You Get Hit By Me
I feel compelled to note that this is not a parody, from FacesofLawsuitAbuse.org
Goosing the System
One of the new stories up this week at FacesofLawsuitAbuse.com.
Trial Lawyers Take Aim
Arbitration Is at Risk

Left to right: Former members of Congress John Kasich (R-OH) and John Breaux (D-LA) and ILR President Lisa Rickard discuss legal reform.
A small but powerful and motivated group of plaintiffs' lawyers has businesses in their crosshairs, plotting new ways of targeting them with frivolous lawsuits, according to tort reform advocates attending the U.S. Chamber Institute for Legal Reform's (ILR's) 9th Annual Legal Reform Summit.
Report: Lawsuit Abuse Still Widespread
West Virginia tops the list of "judicial hellholes" in 2008, according to a report by the American Tort Reform Association (ATRA). The Chamber's Institute for Legal Reform (ILR) commended the report, which corroborates its own findings on lawsuit abuse.
New Stories Show Impact of Lawsuit Abuse
Pool store owners "goosed" then sued
The Economy May be Down, but the Lawsuit Industry is Up
Towers Perrin has released their annual study on the cost of America's tort system, which shows an increase of 2.1% in 2007 to $252 billion. While Americans are feeling a financial pinch from the current economic downturn, this study reminds us that one part of our economy has been growing – the lawsuit industry.
Lost Pants Lawsuit Resurfaces
Roy Pearson Jr., who sued a dry cleaners for $54 million over a missing pair of pants, is getting a chance to revive the case. More than a year after his lawsuit was rejected by the D.C. Superior Court, Pearson has persuaded an appellate panel to review the case. In a separate case, he is suing the District government for not reappointing him to a 10-year term as an administrative law judge.
Source: The Washington Post, 9/12/08
We Cannot Sue Our Way Out of an Economic Crisis
U.S. Chamber of Commerce President and CEO Tom Donohue delivered a rousing address to the attendees of ILR’s 9th Annual Legal Reform Summit, saying that, during this time of global economic turmoil, the last thing America needs is more lawsuits.
Secretary Gutierrez Addresses 9th Annual Legal Reform Summit
The U.S. Chamber Institute for Legal Reform (ILR) kicked off its annual Summit with a visit from U.S. Commerce Department Secretary Carlos Gutierrez. During his morning keynote address to the nation’s leading legal reform experts, Secretary Gutierrez released a Commerce Department report on The U.S.
To Do - Legal Reform, Employee Benefits
If you are looking for things to do this morning here are two good ones:
Since 1949, the U.S. Chamber has conducted an annual study on employee benefits. This powerful tool can help you evaluate and benchmark your company's benefits package and assess the costs of providing benefits. Take the survey before the October 31 deadline.
Massacre at Winged Foot
Incredible-Yet-True Fact No. 1: A New York man who owns a house along famed Winged Foot Golf Club is suing the club because too many golf balls are being hit onto his property.
Eliminating Federal Preemption: Good for Plaintiffs’ Lawyers, Bad for Everyone Else
In the Fresno Bee, George Washington University Law School lecturer Jeffrey Axelrad warns that plaintiffs’ bar-supported legislation designed to expose the manufacturers of devices approved by the Food and Drug Administration to state lawsuits would endanger the lives of Americans who rely on pacemakers, balloon stents and other life-saving medical equipment. The result of the legislation, he argues, would be a hefty payday for the trial lawyers bringing the suits.
The Supreme Court is Back - Preemption is Front and Center
The Supreme Court is back in session with a very important case right out of the gate. The media, of course, is spinning Altria Group v. Good as a "tobacco" case; but they would be wise to head the words of Justice Hugo Black, who once explained that Supreme Court cases "affect far more than the immediate parties." This federal preemption case will affect any American business that complies with federal laws and regulations, only to find that it has been unwittingly dragged into a state court for violating conflicting state laws.
Wheel O' Possible Defendants
With the House rescue bill vote yesterday, I didn't see this Pearls Before Swine until last night, but it is a gem. Learn more about how trial lawyers "revere" our justice system over at ILR. Click the strip for a larger version.
Lawsuits Just a Mouse Click Away
It's like a matchmaking Web site for lawyers and sue-happy clients. A Florida lawyer has created WhoCanISue.com to help consumers determine whether they have a case and to find an attorney from a list of lawyers who advertise their expertise on the site. Potential litigants can use the Web site for free, but attorneys pay an annual fee of $1,000.
Source: Time, August 5, 2008
The Litigation Machine
Why we fight, courtesy of the Wall Street Journal:
Will Plaintiffs’ Lawyers Find New Ways to Sue? They Bet Their Boat They Will
In 1999, flush with more than a three billion dollar windfall from tobacco lawsuits, plaintiffs’ lawyer Ron Motley reset his crosshairs onto another "deep-pocketed" industry: companies that had ceased the manufacture and sale of lead-based paint 30 years ago or more. So certain he could bring the entire industry "to its knees," Motley vowed to give away his prized 120-foot yacht if he and his firm, Motley Rice, did not prevail.
The $54 Million Pants Lawsuit That Never Goes Away
Like a bad cold you just can’t shake off, the infamous lost pants lawsuit is back. ABC News 7, here in Washington D.C., has reported that former D.C. Administrative Law Judge Roy Pearson has been granted a chance to revive his $54 million lawsuit against a local drycleaner for misplacing his pair of slacks.
Pulling the Rug Out From Under Logic
An employee is suing the hospital where she works, claiming her employer never trained her how to walk across a rug without falling. Diane Kelly tripped on a rug in the scrub room and injured herself. She is suing for punitive damages, past and future pain, mental anguish, impairment, disfigurement, lost earnings, and medical expenses, plus attorneys' fees.
Southeast Texas Record, June 4, 2008
Trial Lawyer Earmarks Exposed
Chamber Launches Web Site and Media Campaign

A new Web site likens the trial lawyer agenda to a tangle of vines overtaking Congress.
The Chamber has shed light on a new trial bar scheme to bilk consumers and businesses through more lawsuits by quietly inserting into various legislation provisions to increase lawsuit opportunities and provide special tax breaks for trial lawyers.
Three Simple Ways to Avoid Lawsuits
Clarify and Manage Expectations
Hanna Hasl-Kelchner
ADA Reform Bill Clears Senate

The U.S. Chamber's Randy Johnson, appearing with several congressional leaders, touts the ADA Amendments Act following Senate passage.
An Experienced Public Servant to Florida’s Supreme Court
I would like to commend Governor Charlie Crist for selecting Judge Charles Canady to serve the people of Florida on the state’s highest court. With more than two and a half decades of public service experience, Justice Canady brings to the Supreme Court a unique and thorough understanding of the government, having served in the judicial, executive and legislative branches.
Lawsuit Abuse and Nevada
The Henderson Chamber of Commerce sure knows how to mobilize an active small business community! About 100 Henderson Chamber members attended a breakfast this morning to hear a presentation on protecting yourself against and curbing lawsuit abuse.
America, the Burdened
Congress may be in the middle of a month-long recess, many Washingtonians may have fled the sweltering weather for friendlier climes, and the town may have slowed to a crawl, but nothing can stop the inexorable march of the nation’s massive regulatory system
Judging Merit
As noted in today’s Wall Street Journal, there is an on-going debate raging in the legal community about how judges are chosen. Namely, elections verses so-called "merit" selection. There is a mixed history with both systems at state levels across the United States. Basically this semi-religious debate comes down to something like this:
Uncertainty, Complexity, Liability, and Cost - Yep, Trial Lawyers
As promised, on August 8th the Chamber voiced strong opposition to proposed accounting rule changes that would open the door to lawsuit abuse by trial lawyers and would not provide clear or useful new information to investors.
Lawsuit Abuse, not Much Fun
I have downloaded and uploaded so now I am going to front-load a post for the day. We are heading over to Stone Mountain Park to talk to people and spread the good word on business. Parks, playgrounds and other recreational areas have been among the hardest hit by abusive lawsuits. And it isn’t just our fun being impacted; it’s our children’s education as well.
Lawyer Bonanza
The Wall Street Journal has an editorial today calling a proposed change by Financial Accounting Standards Board (FASB) a potential boon to trial lawyers. The rule change would substantially enhance the disclosure requirements of SFAS 5 – Accounting for Contingencies. Essentially, companies would have to disclose information about almost all litigation and potential litigation and also disclose their assessment of the litigation.
Trial Lawyers Looking for a Handout
You have to hand it to the trial bar—it’s nothing if not innovative. Its latest scheme to bilk consumers and businesses through more lawsuits involves one of the oldest games in town—passing legislation to advance a special interest.
Most Americans are familiar with earmarks, congressional provisions tucked into bills that direct funds to be spent on specific projects or provide special exemptions and breaks to favored groups. Taxpayers are rightly outraged when they learn of money being spent on “bridges to nowhere” or farm subsidies for wealthy “gentlemen ranchers.”
Morning News - Bickering Edition
The Senate adjourned last night much the same way it started – with a lot of bickering. For the first time since the 1950s, members will skip town for the August recess without either chamber having passed a single appropriations bill.
Another Threat to Average Investors: Securities Lawsuits
by Lisa Rickard
During these tough economic times, the roughly 50% of all Americans who have their retirement and other investments tied up in the stock markets have a lot to worry about. Inflation. The mortgage meltdown. Rising fuel costs.
However, obscured by these recent crises is a proven threat that has destroyed billions of dollars of average shareholders’ wealth, year after year. The menace: securities class action lawsuits.
Morning News - Offense for Organized Labor Edition
The Washington Times has an article today about the presidential candidates’ position on card check legislation, noting Obama is for it and McCain against. The article quotes Obama:
Chamber Wins Supreme Court Case
Employer Speech Is Protected

California employers receiving state funds will have less to worry about when it comes to communicating with their employees about the pros and cons of union organizing due to a recent ruling by the U.S. Supreme Court in a case brought by the U.S. Chamber.
Trial Lawyers Looking for a Handout
| By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
You have to hand it to the trial bar—it's nothing if not innovative. Its latest scheme to bilk consumers and businesses through more lawsuits involves one of the oldest games in town—passing legislation to advance a special interest.
Morning News - Shaken not Stirred Edition
A moderate 5.4-magnitude earthquake shook Los Angeles yesterday, giving people a fright but not resulting in any significant damage. The epicenter was about 30 miles east of downtown Los Angeles.
Trial Lawyer Earmarks Growing in Congress
Every summer, I suspect that those who work at garden supply stores are inundated by people looking for advice on how to fight back against invasive vines and weeds that creep into their yards. Suggestions might include hacking back the trespassers, ripping them out by the roots, or even dousing them with powerful herbicides. But the truth is, no matter how much sweat, time and money they invest into this effort, there’s a good chance they’ll just grow back.
Understanding E-Discovery
More than 99% of the world’s information is currently created electronically, and nearly every piece of electronically stored information (ESI) is potentially discoverable in a civil lawsuit. In an average case today, the process of exchanging ESI with an opposing party (known generally as electronic discovery or "e-discovery") can mean processing, reviewing and producing potentially millions of pages of electronic documents. According to one estimate, a "midsize" lawsuit is now expected to generate between $2.5 and $3.5 million in e-discovery costs alone. E-discovery, according to one
Good for Plaintiffs' Lawyers, Bad for Everyone Else
Today the False Claims Act Corrections Act was favorably reported out of the U.S. House Judiciary Committee. The False Claims Act (FCA) has been an important and effective tool to protect the government against false claims on federally funded contracts and programs. Through a combination of government- and whistleblower-initiated lawsuits, the U.S. government has successfully recovered more than $20 billion in cases brought under the Act.
Morning News - FISA, Medicare, McNulty Memorandum Edition
Yesterday the Senate passed legislation updating the Foreign Intelligence Surveillance Act. The vote was 69-28. The bill would renew the legal backing for the federal government's warrantless surveillance program and protect from civil lawsuits telecom companies that helped the government wiretap Americans without court authorization after the 9-11 attacks. About 40 such lawsuits have been filed.
Morning News - A Victory for Common Sense
The Rhode Island Supreme Court overturned a landmark verdict against three former lead paint producers yesterday. In a 4-0 decision, the court said the state's lawsuit, based on a centuries-old public nuisance theory, should have been dismissed at the outset.
Chamber’s ILR Highlights ‘Tangled Web’ of Lawyer Earmarks
Trial lawyers are using legislation in Congress to create a tangled web of earmarks that would allow them to file more lawsuits, according to the U.S. Chamber's Institute for Legal Reform (ILR). ILR has launched a Web site and media campaign to draw attention to the numerous liability-expanding provisions that have been slipped into legislation in the 110th Congress.
"The plaintiffs' trial bar has found a pastime almost as enjoyable as filing lawsuits: convincing Congress to pass legislation allowing them to file more lawsuits," says ILR President Lisa Rickard.
Study Requested by Chamber Confirms Value of Arbitration
Arbitration is a much better alternative for consumers than the court system, with consumers four times more likely to lose when credit card cases go to court, according to a new analysis conducted at the request of the Chamber's Institute for Legal Reform (ILR).
ILR Celebrates 10 Years
Record of Success Against Trial Bar Showcased

ILR President Lisa Rickard highlights the group's successes and outlines its agenda for the next 10 years.
The U.S. Chamber's Institute for Legal Reform celebrated 10 years of landmark legal reform successes during a gala anniversary dinner on June 11 at Chamber headquarters.
Our Broken Legal System and its Impact on Competitiveness
by Lisa Rickard
Scruggs Sentence Exposes Trial Bar Abuses
by Lisa Rickard
Dickie Scruggs famously coined the phrase "magic jurisdictions" – notorious local hot spots of trial lawyer influence where judges are "elected with verdict money" and defendants find it "almost impossible to get a fair trial." While Mr. Scruggs made a living by tilting the legal odds in his favor, his sentence of five years in prison for conspiring to bribe a judge proves there are some lines that cannot be crossed.
Morning News - Spare Change Edition
Yesterday the U.S. Supreme Court slashed the damages Exxon Mobil must pay as a result of the 1989 Exxon Valdez oil spill in what experts are calling a far reaching decision. The court reduced punitive damages from $2.5 billion to $500 million, or the same amount as compensatory damages.
Toward Predictability and Common Sense
Reading List: Tort Wars
Just one item today. The New York Times yesterday had a great piece on the "tort wars"--the ongoing battle over legal reform. The Chamber's Institute for Legal Reform has been a leader in this fight and is featured prominently.
Settlement in Milberg Scandal Leaves More Questions Than Answers
Earlier this week, the Milberg law firm agreed to pay $75 million in return for dismissal of federal charges that they disbursed millions in illegal kickbacks to teams of "professional plaintiffs." The firm - whose former partners, Bill Lerach and Mel Weiss, were recently convicted for their roles in the scandal - was accused of pocketing $250 million over the past two decades by being the first to file class action lawsuits against major companies on behalf of their roster of ready-made plaintiffs.
Trial Lawyer Scandals and the Deafening Silence from the Plaintiffs’ Bar
When a major scandal breaks, the media spotlight becomes intense and those seen as representing the interests of the industry or profession exposed by the wrongdoing usually feel the heat.
But this tried-and-true formula doesn’t seem to hold when it comes to the recent scandals of some of the country’s biggest plaintiffs’ lawyers.
Spitzer Seeks Big Labor Pension Money For Vulture Fund
Here is a fascinating news item about a "vulture fund" that Eliot Spitzer is proposing to start.
Reining In the Kings of Tort
In today’s Washington Post, David Ignatius writes that the "folkloric image" of the small-town attorney, nobly fighting back against the giant corporations on behalf of the common man, has been tarnished by the convictions of infamous high-priced plaintiffs’ trial lawyers Dickie Scruggs and Mel Weiss.
Fair and Accurate Credit Transaction Act (FACTA)
Yesterday, President Bush signed into law H.R. 4008 that amends the Fair and Accurate Credit Transaction Act (FACTA) to make clear that, up until now, a company is not in willful violation of the Act if it shortens a consumer’s credit card number printed on a receipt to four digits but does not remove the expiration date.
Morning News - The End is Nigh? Edition
A small, but vocal, group of protestors have not prevented SEIU’s Andy Stern from getting his way at the union’s convention. His slate of candidates for the executive board is virtually unchallenged, and he rammed through provisions shifting further power from the local unions to the national, including one that requires local unions to send a small percentage of their budgets to the national union for organizi
Weiss Not a 'Robin Hood' in Kickback Scheme
U.S. District Judge John Walter sentenced Mel Weiss earlier today to 30 months in federal prison and fined him nearly 10 million dollars for defrauding the legal system for more than two decades.
Mr. Weiss and his former partner, Bill Lerach, also convicted in the same scheme, like to portray themselves as champions of the people. But no one should believe that either is a 'Robin Hood'.
Chamber Ranks Legal Climates
The U.S. Chamber's Institute for Legal Reform (ILR) is turning up the heat on lawsuit abuse at the state level with the release of its annual Harris Interactive survey rankings of the country's best and worst legal environments in which to do business.
"The survey results send a clear message to states whose legal climate drives away businesses, jobs, and economic development: If you want a healthy state economy, clean up your act," says ILR President Lisa Rickard.
Defensive Medicine and Systematic Legal Reform
On May 14th, Chamber President and CEO, Tom Donohue spoke before the Emergency Department Practice Management Association's Solutions Summit; the theme of the event was "Strategies to Manage Health Care Change". His posts on the subject are available here, here, here and here.
Below is a bit from the Q&A on defensive medicine and systematic legal reform.
Lerach Behind Bars, but does "Industry Practice" Continue?
Interviewed after his trial, famous – now infamous – class action attorney Bill Lerach admitted it is "industry practice" to give kickbacks to certain plaintiffs, which effectively bilked other clients out of their settlements. On Monday, Lerach reported to the minimum-security federal facility at Lompoc, California, to begin serving a two-year sentence for committing crimes he considers merely in line with the standard operating procedure of the trial bar. The "industry practice" that landed
Sen. Cornyn’s Call to Reform America’s Lawsuit Industry
Interviewed after his trial, plaintiffs’ attorney Bill Lerach admitted it is "industry practice" to give kickbacks to plaintiffs and effectively bilk clients out of their settlements. It is appropriate that as Lerach today begins serving a two-year sentence for his crimes, Congress is being challenged to investigate and act upon the apparently widespread abuses that led this attorney-turned-inmate to federal prison.
Morning News - Texas Tort Tango Edition
The government said Friday that it would halt deliveries to the Strategic Petroleum Reserve beginning in July and ending in December. Many lawmakers had been calling for such a move, but most experts say it will make very little difference in gas prices.
A New Excuse in Defense of Plaintiffs’ Lawyer Misconduct Charges
This seems to be the year of big-time plaintiffs’ trial lawyers facing bad behavior charges. The latest case is the Kentucky Three – wealthy trial lawyers who are now themselves on trial, accused of stealing $65 million from their clients in a diet drug settlement.
During the ongoing – and increasingly bizarre – saga, a new excuse has been articulated by the defense attorney for Melbourne Mills, Jr.: the accused suffered from alcoholism, wasn’t involved in the case and therefore could not be held accountable.
Morning News - Alien Tort Edition
The Supreme Court yesterday refused to hear an appeal by 33 major companies trying to stop $400 billion worth of lawsuits in an Alien Tort Statute case involving the apartheid era in South Africa. The Court said the case presented too many conflicts of interest to too many justices who hold stock in the involved companies.
The Mortgage Rescue Bill... with a Trial Lawyer Earmark Thrown in
Pop quiz question: Who are the victims of the recent housing crisis?
A. Borrowers who signed mortgages they couldn't afford
B. Owners who have seen the values of their homes plummet
C. Local governments who are dealing with neighborhoods of vacant, foreclosed housing and a shrinking tax base
If you chose any of the above, you are wrong. According to the latest legislation getting ready to pass the House, the answer is: D. Plaintiffs' trial lawyers.
Morning News - Myanmar, Energy, Wall Street Edition
The cyclone that struck Myanmar last Saturday could reach "disaster of biblical proportions" stage - a U.S. diplomat there said the death toll could rise to more than 100,000. Relief efforts continue to be frustrated by the military junta, who many are accusing of crimes against humanity for their staggering indifference to the crisis.
Is Your State Attracting Jobs and Workers?
Americans are so focused on global economic competitors that they often forget that each of the 50 U.S. states is competing with one another for jobs, workers, and resources. Many of the jobs believed to be going overseas are actually going to other states that have created more positive business environments than their neighbors.
Congress Should Investigate Trial Lawyer Crimes
Nathan Koppel, on the Wall Street Journal Law Blog asks "Kickbacks to Plaintiffs: Industry Problem?"
Does the Milberg criminal case point to a broader ill in the securities class-action industry? That’s a question being raised by U.S. Rep. John Boehner, the Republican leader in the House.
Morning News - Its a Gas, Gas, Gas Edition
Sen. Harry Reid is set to unveil a proposal today to reduce gas prices, but the details are sketchy. He says to expect something new, but many think it will be a rehash of old Democratic proposals: making price gouging a federal crime; allowing the United States to sue OPEC for manipulating crude oil prices; and repealing billions in tax incentives for oil and gas companies. Meanwhile, Senate Republicans are unveiling their own plan today.
Chamber, Business Groups Oppose Anti-Arbitration Proposals
A coalition of major industry groups including the U.S. Chamber of Commerce are opposing recent legislative efforts to chip away at the arbitration system by injecting anti-arbitration provisions in more than 11 industry-specific bills.
The May 1 letter sent to members of Congress points to a recent study by the Chamber's Institute for Legal Reform, which found that 82% of those polled prefer arbitration to litigation as a means to settle disputes, and 71% of likely voters oppose efforts by Congress to remove arbitration agreements from consumer contracts.
Congress Passes Chamber-Backed FACTA Clarification Bill
On Tuesday, May 20, the Senate passed legislation (H.R. 4008) supported by the U.S. Chamber that will amend the Fair and Accurate Credit Transaction Act (FACTA) to make clear that a company is not in willful violation of the act if it shortens a consumer's credit card number printed on a receipt to four digits but does not remove the expiration date. The House passed the bill a week earlier.
Memo to Plaintiffs' Trial Lawyers: "Perceptions" of Bad State Lawsuit Climates Really do Matter
The U.S. Chamber Institute for Legal Reform released its seventh annual ranking of the 50 state legal systems this week. To the surprise of no one here, the trial lawyers are up in arms. The American Association for Justice – a.k.a.
Legal Reform is a Constant Process, Not a One-Time Event
The Institute for Legal Reform’s seventh annual ranking of the 50 state lawsuit systems came out yesterday. Each year, the immediate curiosity is always, "Who’s on top? Who’s at the bottom?" For the record, Delaware is again number one, although by the slimmest of margins.
Lawsuit Climate 2008: Ranking the States
Senior attorneys at America's largest employers say state court liability systems have steadily improved over the last several years, but less than half of them rate the state courts as "excellent" or "pretty good." These lawyers say Delaware still has the best legal climate in the country, and West Virginia remains the worst.
Morning News - Economy, Immigration, Tort Reform
There were no major surprises or fireworks during Gen. Petraeus and Ambassador Crocker’s testimony yesterday. As expected, Petraeus cited "fragile and reversible" gains in security in Iraq, while Crocker said there has also been political progress, but not as much as he would like. Petraeus said that once troop levels reach pre-surge levels this summer, there should be a 45-day review period before any further troop reductions.
Morning News - Rock Chalk Jayhawk Edition
Testimony by Gen. Petraeus and continued fighting in Basra are thrusting Iraq back onto the national political stage. Petraeus is expected to recommend a pause in the withdrawal of troops from Iraq after July, when the troop levels will be lowered to roughly the number deployed before the “surge.” He’ll also likely focus on the unhelpful role Iran is playing, especially in southern Iraq, where their influence is strong.
Morning News - Class Action Edition
Speaker Pelosi is warning the White House not to send the U.S.-Colombia FTA to Congress next week as planned, saying it’s too early and it doesn’t have enough support to pass.
The Truth About Honesty
I see that Steve Pearlstein of the Washington Post did a drive-by smack at the US Chamber in his on-line discussion post yesterday. He claims that we long ago gave up on being "intellectually honest", in part because we refuse to equate plaintiffs' lawyers, who "forum shop" in search of compliant judges, with businesses who look for communities with low taxes and good business climates. Isn’t shopping for justice the same as shopping for a good neighborhood? Talk about i
Arbitration Works
Sharon Kruse is a 63-year-old widow from Dundee, Michigan. She is a former part-time teacher, mother of seven children and grandmother of seven.
Arbitration Ain't Broke, But Trial Lawyers Want To "Fix" It
A short article appeared in The New York Times on June 13, 1925 headlined "Federal Court Cases Double in Ten Years." From 1915, the number of cases had risen annually from nearly 63,000 to about 126,000. Despite their best efforts, the federal courts were drowning in cases, but change was coming. Four months earlier, Congress had passed the Federal Arbitration Act.
Morning News - Housing Stimulus Edition
The Dow fell 49 points yesterday in subdued trading. A pessimistic assessment of the economy from Ben Bernanke blunted an early morning rally. In testimony before Congress, Bernanke acknowledged a recession is possible and that he didn’t think the economy would grow at all – and might even contract – in the first half of the year before strengthening in the second. Bernanke also defended the Fed’s involvement in the takeover of Bear Stearns, saying he fully expected to get his agency’s money back.
Is Your State’s Legal System a Friend or Foe of Business?
On April 23, the Chamber's Institute for Legal Reform (ILR) released its seventh annual ranking of state court liability systems to highlight the country's best and worst legal environments in which to do business.
For the seventh year in a row, Delaware held the top spot, with Nebraska, Maine, Indiana and Utah rounding out the top five. West Virginia ranked in last place for the third year in a row, while Louisiana, Mississippi, Alabama and Illinois also garnered low marks.
ILR Fights Plantiffs' Bar Efforts to Remove Arbitration Option
The Chamber's Institute for Legal Reform (ILR) released two reports this week illustrating the widespread public support for the use of arbitration over litigation in consumer and employee disputes.
Is Your State Attracting Jobs and Workers?
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By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
Reading List - 28 March
Reading List - 27 March
Morning News - Capital Markets Recap Edition
Secretary Paulson’s speech to the U.S. Chamber yesterday made all sorts of news. The media focused on two items from his speech: his call for the Federal Reserve to oversee investment banks as well as commercial banks and the administration’s soon-to-be released blueprint for reforming regulations governing the financial markets.
Reading List - 24 March
- What is Wrong With Tort Law - let me count the ways
- Ocean cargo: U.S. exports on the rise…but where’s the space?
- Niceonomics - or the karma study
Morning News - Regulation a Go-Go Edition
The New York Times had a major story yesterday examining the split between the Bush administration and congressional Democrats over how to strengthen oversight of financial institutions. Both seem to agree that the current system is a tangled web of federal and state regulators, which failed to deal with new financial players and innovations.
Unethical and Illegal Conduct in Plaintiffs' Trial Bar
The Mel Weiss plea agreement in the kickback scandal related to his decades-long securities law practice is just the latest example of unethical and illegal conduct in plaintiffs' trial bar.
Mel Weiss and the other lawyers who dominated securities class action litigation for decades are going to prison for conspiracy and racketeering. Over twenty five years, these officers of the court disregarded their responsibility to their clients and corrupted the legal system for their own personal gain.
Morning News - Felony Bar Edition
Up 420 points on Tuesday, down 293 points on Wednesday, up to 261 points yesterday – the rollercoaster ride on Wall Street continues. For the week, though, the Dow was up 3.4%. [Markets are closed today for Good Friday.] Oil prices continued their gradual fall and gold prices continued their plunge.
Morning News - Markets, Coal, and War Edition
Nothing small seems to happen on Wall Street these days. After rallying 420 points Tuesday, the market gave back most of its gains yesterday, shedding 293 points. Plunging oil and gold prices did little to relieve inflationary worries and instead sparked a big selloff in oil services and metal and mining stocks. Crude oil fell almost $5 a barrel to $104.50, while gold shed another $59 an ounce. Gold has lost $85 an ounce in the last two days.
Reading List - 17 March
- Arizona and Colorado Consider Guest-Worker Programs - GO AWAY! no wait. COME BACK!
- The Erosion of Individual Responsibility - No, no, it was the predatory creditors, it wasn't me
- It’s My Way or No Highway - or the erosion of congressional responsibility
Reason Wins
The National Chamber Litigation Center (NCLC) is a key player in the Chamber's efforts to ensure litigation fairness. Even its detractors have to concede that by "investing heavily in legal strategy and working patiently in case after case the chamber has won victories that have gradually shifted the ground rules in its favor."
10 Most Wanted
My little "on this date" calendar tells me that on March 14, 1950 the FBI began releasing their "10 Most Want Fugitives" list; which is online now.
To commemorate this little bit of public relations, here is Chamber's "10 Most Wanted" as of today, in no particular order.
Morning News - Money, Sex, Politics, War
Let’s start with money … There was a huge rally on Wall Street yesterday, with the Dow soaring 416 points, it’s best one day gain in 5 1/2 years. Investors welcomed news that the Fed will lend up to $200 billion to banks and lenders.
Reading List - 11 March
Reading List - 7 March
- State Economic Competitiveness Index - or maybe you need to drop the isolationist rants and look at your policies
- Trial lawyers at the public trough - actual headline, don't sue us
- Immigration: New bills, old borders - a policy review
Patience is a Virtue
In Slate's article "Big Business's Big Term" we will ignore the fact that Mr. Kendall's bias is buried in the bio box at the bottom. We will also ignore the fact that his portrayal of me as "gushing" is sexist if not insulting. Instead, let's focus on the last paragraph of the article in which Kendall concedes that "The game is not rigged.
The flaws of S. 2663, the "CPSC Reform Act"
The Chamber has sent a letter to the Senate strongly opposing the current version of S. 2663, the “CPSC Reform Act”.
From the letter:
Today's Blogging Lesson
// Updated 4 March
It's nice to learn something everyday; today I learned that if you are trying to make a point in a blog post, you probably shouldn’t link to someone who makes a better counterpoint. I suppose I knew this already, but reminders and examples are nice.
Reading List - 29 February
- 20 Surprising Ways Wal-Mart Clinics Will Affect US Healthcare
- Opting out of NAFTA - "Knowledgeable observers would have to take note of the fact that we are the largest supplier of energy to the U.S." - Oh yeah, well take your energy and, um, sell it to us.
Morning News - Leap Day Edition
In their latest “anything she can I do we can better” salvo, no sooner had Hillary Clinton proudly announced she had raised a record $35 million in February, than the Obama camp crowed that they had raised $50 million. Meanwhile, most major polls now show Obama with a slight, but statistically significant, lead in Texas. He also continues to creep up on Hillary in Ohio.
Morning News - Despair is Inappropriate Edition
Obama and McCain appear to be skipping the rest of the primary season and moving right to the general election as they tangled over Iraq yesterday. McCain seized on remarks made by Obama in his debate with Hillary Clinton Tuesday night in which he said he would consider sending troops back into Iraq after they had been withdrawn if Al Qaeda in Iraq established a base there. McCain said: "Is Sen.
Reading List - 27 February
- Texas shattering early voting records - I have to say, I'm still torn on early voting, but this is impressive
- Kansas joining the patchwork of local immigration laws and Long-Term Immigration Trends
Morning News - Debating Medication Edition
Tim Russert debated Hillary Clinton and Barack Obama in Cleveland last night, or moderated the debate, depending on your perspective. Health Care and trade were the big topics, with small differences between the two. Not quite the "kitchen sink" but Clinton did question Obama's campaign et
Reading List - 25 February
- State Attorney Generals Abuse Their Power - I need to set this phrase up as an auto-complete
- Fake Chinese Anti-Malarial Drug Makers Apprehended - IP theft isn't just music downloads kids
Lawsuit Inc.
The Wall Street Journal has an editorial today about the growing nexus between state attorneys general and private lawyers. It discusses a bill recently passed by the Mississippi Senate requiring Mississippi AG James Hood to pursue competitive bidding before signing contracts of more than $500,000 with private lawyers. The legislation also requires a review board to examine contracts, and limits contingency fees to $1 million.
Morning News - The Good, The Bad and The Satellite Edition
McCain, Clinton, and the economy all got some bad news yesterday …
Reading List - 20 February
The Gift Which Keeps on Taking
In 1886, Europe gave a gift to the United States. La liberté éclairant le monde, or what is more commonly known as the Statue of Liberty, has come to serve as a symbol of freedom and democracy around the world.
America has now decided to return the favor with a gift of its own – class action lawsuits. U.S.-style class action litigation is rearing its ugly head in Europe and some American trial lawyers are salivating at the thought.
About Those Trial Lawyers
Some of you thought I gave trial lawyers a bad rap in my piece two weeks ago about how the business community was challenging attempts by the plaintiffs' bar to stack state supreme courts with plaintiff-friendly judges. Some of you thought I was painting all trial lawyers with the same broad brush. Some argued that even when pursuing huge awards for large class actions, lawyers are only doing so to benefit their clients.
Ensuring Litigation Fairness
A relatively small group of class and mass action trial lawyers are abusing our legal system. Their tactics often amount to nothing less than legalized extortion.
America's lawsuit system costs a quarter of a trillion dollars each year. Small businesses take a big hit, paying $98 billion in tort costs.
Morning News - A Lot to Consider Edition
The race for the Democratic presidential nomination is starting to resemble that old song “Something’s Gotta Give” – the irresistible force (Obama) meeting the immovable object (Clinton). Clinton appears to have decided to contest the Wisconsin primary next week, making a decent sized ad buy and spending a few days campaigning there. Her campaign staff are said be to be nervous going into the March 4 primaries in Texas and Oklahoma after having lost what would be 10 straight contests.
The People versus the Powerful Class Action Lawyers
Why Lerach and friends' rhetoric doesn’t match reality
by Lisa Rickard
Bill Lerach, the famed class action trial lawyer who made a personal fortune representing plaintiffs in securities lawsuits, was sentenced this week to federal prison for conspiracy to obstruct justice in connection with a two-decade scheme of paying individuals to participate as lead plaintiffs in massive class action lawsuits.
Enough Trial Lawyer Hiding Too...
Lawsuit Abuse Affects Everyone
Frivolous lawsuits have a devastating impact on small businesses:
Learn more about the real impact lawsuit abuse is having on our society.
U.S. Health Care—Strengths and Weaknesses
by Tom Donohue
Reforming health care has been a major issue in the presidential campaign. What the debate has lacked is an honest appraisal of the strengths and weaknesses of our health care system.
Reading List - 8 February
No Wonder Eli Picked the Hybrid
Fool Me Once, Shame on You - Fool Me Twice...
Newt Gingrich, Civil Libertarian? - I'd need to see his ACLU card.
Reading List - 6 February
- Welcome urged for immigrants
- Anti-immigration efforts hitting wall of suits
- "Since unions cannot win many secret-ballot elections they have come up with the Employee Free Choice Act (EFCA)...what should be called the labor union welfare act..."
Enough Trial Lawyer Whining
There has been increasing whining from trial lawyers about the impact of “interest group politics” on state supreme court elections. In particular, there is a lot of moaning about “conflicts of interest” coming from judges having to raise money to run for office. The real problem is that trial lawyers are the biggest special interest group of all—and they are annoyed that they don’t have this branch of state government all to themselves anymore.
Morning News - Economy and Politics Edition III
There was a marked change in tone last night at the Democratic debate between Clinton and Obama in California.
NCLC Raises the Legal Stakes
Immigration, Unionization Cases Head to Court
State immigration laws that impose severe penalties on businesses, a state law that prohibits businesses from talking to their employees about unionizing, and employment litigation are among the issues that the National Chamber Litigation Center (NCLC), the Chamber's public policy law firm, is challenging in court.
Chamber Fights Wave of Lawsuits
Printed Receipts Land Businesses in Court
Information printed on customer receipts is landing retailers in court for allegedly violating federal privacy laws, and the U.S. Chamber is fighting for legislation to close the loophole that has invited the lawsuits.
Enough Trial Lawyer Whining
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By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
A Gaping Hole in Americans' Education
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By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
About Those Trial Lawyers ...
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By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
Reading List - 30 January
Are Trial Lawyers Afraid to Compete?
There has been increasing whining from trial lawyers about the impact of “interest group politics” on state supreme court elections. In particular, there is a lot of moaning about “conflicts of interests” arising from judges having to raise money to run for office. The real problem is that trial lawyers are the biggest special interest group of all – and they are annoyed that they don’t have this branch of state government all to themselves anymore.
Morning News - State of the News Edition
There weren’t too many surprises in President Bush’s State of the Union address last night. As expected, he focused on the economic stimulus package, clamping down on earmarks, the war on terrorism, and other unfinished business. One of the more significant new proposals was a $300 million initiative to help provide choices for kids trapped in struggling inner-city public schools. Bush expressed concern about the declining number of faith-based and parochial schools in inner cities and in low-income neighborhoods.
Reading List - 28 January
- Tom Donohue's Friday Interview on Bloomberg TV
- Employee Free Choice Act Would Disenfranchise 105 Million Workers
- "I think comprehensive immigration reform in 2008 is going to be very hard to come by" - Pelosi and Reid on Immigration
Out-of-State Lawsuits in Delaware
Asbestos lawsuits from non-Delaware residents, for claims occurring in other states, are being brought into Delaware at an increasing rate. In 2004 "there were 62 cases -- nearly all alleging exposure in Delaware -- on the court's docket. But between May 2005 and Sept. 30 of this year, 577 more cases were filed -- 445 by nonresidents who largely allege they were exposed to asbestos in another state." (from PointofLaw)
Supporting Business
The Chamber is the nation’s largest federation of businesses and associations, with an underlying membership of more than 3,000,000 businesses and professional organizations of every size and in every relevant economic sector and geographic region.
Morning News - Bipartisan Edition
- The White House and Congress have reportedly reached a deal on a stimulus package that includes tax rebates, tax breaks for businesses, and help for homeowners facing foreclosure. Those who earn up to $75,000 individually or up to $150,000 as a couple will be eligible for the payments -- $600 to individuals and $1,200 to couples who paid income tax and who filed jointly, plus an additional $300 per child.
Stoneridge Redux
There has been a lot of venom thrown at the business community as a result of the Stoneridge decision last week. The general argument appears to be that the SEC’s authority to investigate and get funds directly back to defrauded investors is not enough, somehow a cut needs to be found for trial attorneys.
Pre-emption Post
From the Financial Times, 'Court intervenes over US lawsuits ', courtesy of MSNBC:
The US Supreme Court decided to intervene in several important business disputes, on Friday...Robin Conrad of the National Chamber Litigation Center, the US Chamber of Commerce's legal arm, welcomed the decision to hear the Wyeth case and other business cases on Friday.
Morning News - Infrastructure Edition
- The National Surface Transportation Policy and Revenue Board is urging the government to raise federal gasoline taxes by as much as 40 cents per gallon over five years to ease traffic congestion and repair infrastructure. Under the recommendation, the current tax would be increased annually for five years -- by anywhere from 5 cents to 8 cents each year -- and then indexed to inflation afterward. The commission was formed by Congress in 2005.
Reading List - 14 January
- Some notes on "predatory borrowing"
- The next front in immigration, targeting babies (h/t adamsmith.org)
Morning News - Auto-Economic Stimulation Edition
- The Wall Street Journal reports this morning that the White House is considering an economic stimulus package that would give tax rebates for individuals to encourage spending and tax breaks for businesses to encourage investment. Specifically, the administration is considering a $500 rebate for individuals and accelerated depreciation for businesses.
Our Plan for Continued Growth
Next Tuesday, January 8th, I will be delivering my annual State of American Business address, laying out the Chamber's agenda for the year ahead.
Justice or Extortion?
"You used to be able to give better service; you used to be able to be better than everybody else. Now you have to watch your step because you're doing something that's going to expose you to some legal action." That's a quote from a business owner who tells his story on our new website iamlawsuitabuse.org go there to hear the true impact of lawsuit abuse on our competitiveness.
Being Competitive
In recent months I’ve been traveling around the country delivering a series of speeches on challenges America must meet and master in order to succeed in a tough global economy. Together, these challenges comprise the Chamber’s competitiveness agenda. Over the next five years – and beyond – we plan to focus extraordinary resources to advance these issues because they hold the key to our nation’s future economic success.
How Did We Get to This Point?
U.S. Legal System Has Run Amok
By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
Sadly, America has adopted a culture where everyone is a victim, where suing is the first—not the last—resort, and where any misfortune in life must always be someone's fault.
We see some courts, juries, prosecutors, attorneys general, and regulators using the legal system not to enforce the law but to make the law. We see troubling attacks on the due process rights guaranteed to every American by ambitious prosecutors.
A Drive to Curb Legal Abuses
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The U.S. Chamber is stepping up its efforts in a sweeping coast-to-coast legal reform campaign. |
New Challenges, New Opportunities
U.S. Chamber Advances Business Agenda

U.S. Chamber Chairman Paul S. Speranza Jr. (left) briefs Sen. Mike Enzi (R-WY) on health care priorities while a staff member looks on.
The Chamber in 2007 moved the ball forward on a number of policy issues essential for continued economic prosperity, job creation, and competitiveness. Below are some highlights.
Small Business Member Warns Against Onerous Retirement Fee Disclosure Rules
U.S. Chamber member Harold Jackson of Buffalo Supply Inc. provided a small business perspective on retirement benefits during a House Ways and Means Committee hearing last week.
Transportation Bill Moves
Congress' Wrong-Headed Approach to Energy
| By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
A Legal System Run Amok
| By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
How did we get to this point? We have allowed a deeply flawed legal system to infect and alter our democratic form of government, our civic life, and our character as a people.
ILR Releases AG Code of Conduct, Study at Summit
The U.S. Chamber of Commerce's Institute for Legal Reform (ILR) is encouraging state attorneys general to voluntary adopt an ethical code of conduct in response to improper practices by some officials. The proposed code of conduct–unveiled at ILR's 8th Annual Legal Reform Summit on October 24—provides recommended "best practices" for initiating and conducting investigations and litigation, including guidelines for employing outside attorneys, communicating to the public about an ongoing lawsuit, and handling any settlement or award.
Chamber Examines California Legal Environment
California's legal environment is under the microscope today, October 16, as the U.S. Chamber hosts Litigation in California—It's Everybody's Business, in San Francisco.
California Attorney General Edmund G. Brown Jr., sitting judges from the Ninth Circuit Court of Appeals, and general counsels from leading U.S. companies will discuss California's legal climate, its impact on businesses and economic growth, the effectiveness of recent legal reforms, and new priorities for change.
It Is Time to Get It Right on Immigration
| By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
Pants Lawsuit Fundraiser Held
U.S. Chamber Rallies Behind Small Business
The U.S. Chamber's Institute for Legal Reform (ILR) and the American Tort Reform Association (ATRA) hosted a fundraiser for a mom-and-pop dry cleaner engulfed in a two-year fight against a $54 million lawsuit over a missing pair of pants. The event raised more than $70,000 to cover the legal costs of the targeted business owners and helped underscore the need for commonsense legal reform.
Chamber Outlines Long-Term Agenda
Donohue's Anniversary Inspires Vision
The U.S. Chamber of Commerce, on the occasion of President and CEO Tom Donohue's 10th anniversary as head of the organization, is charting a multiyear agenda to enhance America's competitiveness. The major components of this agenda are listed below.
Expand the Workforce. The Chamber will lead efforts to expand and improve the pool of available and qualified workers through comprehensive immigration and visa reform and better education, especially in math and science.
'Best Supreme Court Term in 30 Years'
Business Benefits From Legal Victories

The Chamber's Robin Conrad touts NCLC's successful involvement in key business-related Supreme Court cases.
In its session ending in June, the U.S. Supreme Court considered more business-related cases and ruled in favor of businesses more often than in previous sessions, owing in part to the advocacy efforts of the Chamber's public policy law firm, the National Chamber Litigation Center (NCLC).
Chamber Event Pays Legal Bills In Frivolous Pants Lawsuit
The U.S. Chamber's Institute for Legal Reform (ILR) joined with other supporters this week to help Jin and Soo Chung, the owners of a Washington, D.C.-based dry cleaner, to raise funds to defray the legal costs resulting from the $54 million lawsuit brought against the Chungs over an allegedly "missing" pair of pants.
The Case of the $54 Million Pants
| By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
Lawsuits Target Small Business
U.S. Chamber Shares New Data With Congress
Small business owners bear the brunt of the nation's tort costs, and the mere threat of lawsuits is a factor in their decisions to lay off workers and raise prices, according to research released by the U.S. Chamber's Institute for Legal Reform (ILR).
U.S. Chamber Calls on Members to Oppose More Lawsuits
The U.S. Chamber is urging all its members to oppose the positions espoused in a letter from the nation's attorneys general to House and Senate leaders that could result in more lawsuits against businesses.
Chamber Ranks Legal Climates
Targeted Ad Campaign Urges Reform Delaware Ranks First, West Virginia Last
The results of the U.S. Chamber Institute for Legal Reform's (ILR's) sixth annual survey evaluating the lawsuit climates in all 50 states show that the legal environment is a factor in business decision making.
U.S. Chamber Releases State Legal Climate Rankings
On April 25, the U.S. Chamber of Commerce's Institute for Legal Reform (ILR) released its annual State Liability Systems Ranking Study to highlight the country's best and worst legal environments in which to do business.
ILR President Testifies on High Cost of Lawsuits
The president of the Chamber's Institute for Legal Reform (ILR) testified before Congress last week on the devastating impact lawsuits have on small businesses and provided new data from two studies commissioned by ILR that show how the high cost of lawsuits is affecting business decisions.
"America's small businesses are paying a high price for our broken lawsuit system in the form of lost opportunities to expand their businesses," ILR President Lisa Rickard said during testimony before the House Small Business Committee on May 17.
What's the Legal Climate in Your State?
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By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce |
U.S. Chamber Opposes West Virginia Bill Limiting Out-of-State Lawsuits
The U.S. Chamber of Commerce and its Institute for Legal Reform (ILR) is urging Gov. Joe Manchin (D) to veto a bill that would limit lawsuits filed by out-of-state residents.
House Bill 2956 would allow defendants sued in civil cases to seek to have the suit moved to another more appropriate venue. The judge would decide if such a move was warranted. The bill was unanimously passed by both chambers of the Legislature during the just-ended regular session.
ILR Launches Online News Service
Focus Is on Legal Climate
The U.S. Chamber's Institute for Legal Reform (ILR) has launched an online news service reporting on activities affecting the legal climate at the state and local levels.
Chamber Members Set Agenda
Tax and Legal Reform Top List of Priorities
Tax, regulatory, and legal reform top the list of priorities for U.S. Chamber members, followed by labor and employment issues, according to the results of the Chamber's 2007-2008 National Business Agenda survey. The survey, which is conducted every two years, will help shape the Chamber's policy agenda for the administration and the new Congress.
Chamber Takes Aim at 2007 Priorities
In the coming year, the Chamber will proactively advance a number of pro-growth proposals, launch a vigorous defense against anti-business proposals, and pursue far-reaching competitive reforms that extend well beyond the halls of Congress. Below is a brief overview of the Chamber's policy priorities:
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