Unemployment is growing, economic worries abound and millions of Americans wonder if they will have their jobs tomorrow morning. But amid all this distressing news, a new study shows that business is booming for predatory tort lawyers – class-action plaintiff attorneys who make millions by suing, with or without just cause. Towers Perrin has been tracking the cost of such litigation since 1950 and recently updated its data through the end of 2007. Here’s how the firm described the results: “The U.S. tort system cost $252 billion in 2007, which translates to $835 per person or $9 per person more than in 2006.” Since 1950 when Towers Perrin began its study, the growth in tort costs has out-paced growth in the nation’s Gross Domestic Product by two percent. In other words, suing companies and corporations thought to have deep pockets has for too long been a reliable way for ambitious, aggressive lawyers to get rich, almost always at the expense of shareholders, consumers and taxpayers.
But public patience with endless, costly class-action litigation is clearly growing short. The Institute for Legal Reform, which is associated with the U.S. Chamber of Commerce, surveyed a representative national sample of 800 adults (with a 3.46 percent +/- margin of error) on election day, asking them a series questions about how favorably or unfavorably they view predatory lawyers and lawsuits. While the vast majority of respondents said they voted as they did because they desire “change,” they didn’t define change as including more lawsuits. Fully three-fourths of such voters said they would view Congress less favorably if it approves new laws making it easier for class-action trial lawyers to file more lawsuits. Among independents, 73 percent said they would view Congress unfavorably if such laws are approved.
The rest of the results from the ILR survey provide insights into why most Americans appear to oppose predatory lawyers and their expensive litigation. Expanding lawsuits would have a negative effect on the economy, according to 79 percent of the respondents, with nearly half (47 percent) saying it would be a “very negative” effect. Asked if frivolous lawsuits are a serious problem, 83 percent said yes. Of those, 77 percent were Democrats, 80 were Independents and 92 percent were Republicans. Most worrisome for the predatory lawyers is this number: 73 percent of ILR’s respondents said lawyers benefit the most from class-action litigation and only four percent thought victims benefit the most. Bottom line: Our new president and Congress should think very carefully before helping predatory lawyers fatten their already bulging bank accounts.
