Tort Reform

Tort reform is a term used by supporters of a heavily disputed claim that the American court system has too many frivolous civil lawsuits. In a frivolous lawsuit, either there is no link between the conduct of the defendant and the injuries sustained by the plaintiff or the damages awarded to the injured plaintiff are perceived to be too high for the injuries sustained. Most reforms are aimed at placing caps on actual and non-economic damages (including punitive damages), enacting restrictions on the lawsuits filed, and otherwise limiting the consumers' compensation in the courts. Advocates claim that by limiting the amounts plaintiffs can receive, costs of doing business can be significantly decreased, especially in the case of medical malpractice insurance. In this particular argument, medical costs would decrease, making it more affordable for everyone. A January 2004 study by the non-partisan U.S. Congressional Budget Office casts doubt on such claims. The CBO study found that, Malpractice costs account for less than 2 percent of health care spending" Whether that portion might be reduced by proposed tort reforms and, if so, by how much, is a difficult question to answer. Detractors of tort reform efforts claim that the real intent is to shield businesses and insurance companies from having to pay just damages for legitimate claims, while sacrificing consumers' rights. They argue that large punitive judgements are the only way for corporate cost-benefit analyses to discourage actions that may endanger customers or the general public. Tort reform is controversial and has become a major rift between the Republicans and Democrats. Most notably, in the 2004 presidential election, Democratic vice presidential nominee John Edwards, a successful plaintiff's lawyer, was heavily criticized by tort reform advocates. Republicans generally voice support for states' rights and say they oppose an excessive role for the federal government. Many of them, however, support federal "tort reform" legislation that would override state decisions in an area of law that has traditionally been left to each state. The proposals advanced as "tort reform" generally do not address the issues of frivolous suits brought by businesses against competitors or against government regulation, nor do they include frivolous defenses raised in consumer actions.

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