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Lawsuit abuse has long been a concern of PA Chamber members, and a lingering problem in the Commonwealth. New evidence from a recent poll, the U.S. Tort Liability Index: 2008 Report, conducted by the Pacific Research Institute, supports the business community's call for lawsuit abuse reform as necessary to create a prosperous economic climate in Pennsylvania.

The institute's poll labeled states as "sinners" or "saints" based on the status of their legal costs and laws. Pennsylvania ranked a dismal 45th in the nation, and landed on the list of "sinners" due to its high monetary tort losses and/or litigation risks and its weak tort rules.

The harmful affects of lawsuit abuse (PDF) are far-reaching. The survey revealed that low-ranking states are less likely to lead in areas like business start-ups, expansion, product development and job opportunities.

Lawsuit abuse negatively impacts the health-care system as well. At a time when Pennsylvania needs to focus on lowering health-care costs, lawmakers are not doing enough to address the underlying cost-drivers of health care, one of which is an unbalanced legal system. Fear of lawsuits leads physicians to practice defensive medicine, which ultimately places a higher price tag on the delivery of health care. Also, businesses that spend more each year on liability insurance have less money for things such as health benefits for employees.

The PA Chamber is urging lawmakers to enact commonsense legal reforms:

Repeal of joint and several liability. Pennsylvania's allowance of recovery under the doctrine of joint and several liability holds defendants found even 1 percent liable in a lawsuit responsible for the entire verdict. This unfair doctrine actually encourages more litigation as plaintiffs go in search of deep pockets (ability to pay) when filing their lawsuits. Often, these deep pockets end up paying the entire award even if they were only marginally responsible. Reforming this doctrine would ensure that Pennsylvania adheres to the basic premise that liability equals fault, and a defendant should only pay their fair share.

Protection for innocent sellers. Sellers, who are not manufacturers, are frequently sued even though all they did was sell a product later claimed to have been defective. This is unfair, and the costs of litigation are passed on to all of us in the form of higher prices. The measure would ensure that retailers who do not alter a product would not be liable if a product is defective.

Statute of repose in product liability actions. Too many product liability suits are brought many years after a product was manufactured and worked without incident. This leads to difficulties in defense and higher insurance costs for all. This reform measure would establish a 15-year time limit (statute of repose) for most products. Specifically exempted would be actions alleging a physical illness, the evidence of which did not appear in less than 15 years after the first exposure to the product (i.e. tobacco or asbestos).

By taking steps to create a balanced, commonsense legal system, elected officials have an opportunity to send a clear message across the Commonwealth and the nation that Pennsylvania is committed to attracting and retaining quality businesses and family-sustaining jobs.