Ch. 15 Law in America
Is Legal Reform Needed? Lawsuit abuse “Litigious society” Tort reform Lawyer jokes
Areas of Alleged Legal Abuse Medical Malpractice lawsuits Product liability lawsuits Class action lawsuits
What Causes or Allows Lawsuit Abuse? Contingency fees –Typically 30-40% of award “Ambulance chasers” –Personal injury attorneys “Deep pockets” –Due to “joint and several liability”
Types of Damages Economic damages Pain and Suffering Punitive damages –Could go to a public interest fund rather than the plaintiff
Who Pays the Windfall Awards? We all do Insurance companies –Raises our insurance rates –Drives people from their professions Businesses –Bankruptcies result –People lost jobs –Costs are passed along to consumers
What are Other Effects of Lawsuit Abuse? Removal of playground equipment Prohibitions against “dangerous” pastimes Lax classroom discipline
In Great Britain Contingency fees are considered unethical and are illegal Judges rather than juries hear liability cases
What would Ralph Nader say? Product liability lawsuits keep companies from abusing consumers