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September 16, 2007

"DON'T BUY INTO TORT REFORM'S PROMISES"

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On September 7, 2007, the Free Press published a Local Comment piece, entitled, “Don’t Buy Into Tort Reform’s Promises”, written by Robert Raitt, President of the Michigan Association for Justice, formerly known as the Michigan Trial Lawyers Association.

Though I am an attorney, I am not a member of Mr. Raitt’s organization. Over the years, I have probably voted Republican more than I have voted Democrat. I am all for business, especially as my children reach the age where they are looking to establish their own careers.

Mr. Raitt points to several sources that indicate Michigan has a very “pro-business” tort and liability system, and has had for some time. It is pretty clear that this has not translated into a thriving state economy. But, the Michigan Chamber of Commerce now wants even more “tort reform”, though we already have more than virtually every other state in the Union, many of which are doing better than Michigan economically, by the way.

The truth is that Michigan needs less “tort reform” than it has, not more. Those reading Mr. Raitt’s article might think that while a pro-business legal system hasn’t helped the Michigan economy yet, maybe more tort reform will. Experience has shown that this is not true. The “pro-business”, which really means “anti-citizen” legal system, has been with us for about 15 years, growing ever more restrictive to individual rights, especially since 2000. However, in that time many businesses have left Michigan, down-sized or closed all-together. While this state affords drug companies immunity from responsibility granted virtually nowhere else in this country, Pfizer took 2700 jobs out of the state and moved them elsewhere.

To be fair, tort reform has helped at least on industry increase profits. The insurance industry takes our money in premiums, pays less and less out in claims to injured persons. Promised premium reductions never seem to happen.

The Chamber website states that it seeks additional reform to make the civil justice system fair and balanced. The reforms that have already been put in place have let admittedly drunk drivers escape responsibility to those they injure, and have let admittedly negligent property owners escape responsibility to those injured on their premises. I am not speaking of the kind of cases many people would call “frivolous lawsuits”, but cases where negligence is admitted, but the law allows those responsible to disrupt the lives of those they hurt. The Chamber says we need to make the existing system, that tramples over its citizens like they were so much raw manufacturing material, more “fair and balanced” for business,

Make no mistake; the Chamber is a lobby to increase business profits. If you don’t believe that, try contacting them sometime and asking them to push for reform of the credit card industry. Ask them to explain how, when you are getting less than 2% on your savings accounts and mortgages were going at about 5%, you were being charged upwards of 27% on your credit card balances by the good members of the Chamber. Members that, in fairness to its customers, come up with ever more inventive ways of increasing, costs, hidden charges and penalties to drive even more profit out of this operation. Seems to me that reducing the cost of consumer credit by a couple of dozen points might inject some additional money into the aching Michigan economy. Don’t expect a warm reception at the Chamber.

So, remember, good citizens of Michigan, as you try to understand why your credit card billing cycle is now 20 days instead of 30, and why your payment is now due 8 days after you get your bill (please allow 7 days for processing), that what corporate greed has succeeded in taking today, is just the starting point for wanting more tomorrow. It is the same way with tort reform. Ultimately, individuals suffer as their rights are taken from them. The people have no lobby, like the Chamber to protect them. They used to have the legal system. The Chamber has taken much of that protection away. They want more. They will always want more.

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