News Currents
Tort reform remains an issue in South Central states
Despite having passed tort reforms in 2003, Texas has one of the worst legal climates in the country according to a study released by the U.S. Chamber Institute for Legal Reform (ILR). The state ranked number 43 in the 2006 Harris State Liability Systems Ranking Study, and various Texas jurisdictions were named among the least fair and reasonable jurisdictions in the country.
Meanwhile, in Oklahoma, which is said to have a “moderate” legal climate, Republican lawmakers are struggling to pass a “comprehensive” tort reform measure they say is being held up by their Democratic peers in the state legislature. Oklahoma ranked 33 on the 2006 ILR/Harris poll, 32 in 2005 and 31 in 2004.
Arkansas ranked 41 in the 2006 study, somewhat higher than ’05’s 44 ranking and the number 45 listing it received in 2004. Louisiana wins the prize for the lowest ranking of the four South Central states covered by Insurance Journal-South Central, with a ranking of 49 for 2006, down somewhat from the rank of 47 it held in 2004 and 2005. Texas, which has touted the success of its recent legal reforms, has moved up only one spot from 2005’s 44 ranking and two from its 45th place in 2004.
“Despite the meaningful reforms passed in 2003, Texas remains one of the worst legal climates in the country,” Tom Donohue, president and CEO of the U.S. Chamber of Commerce, said in a news release. “The Rio Grande Valley and the Gulf Coast are widely known as jackpot jurisdictions due to the high number of lawsuits, large awards and unfair day-to-day practices in terms of class certification, discovery,
evidentiary rulings and jury instructions.”
Houston, Fort Worth-Dallas, and Hidalgo County, Jefferson County and Harris County in the Lone Star State were specifically named by the report as troublesome. According to the Associated Press, the 2006 survey ranked Oklahoma as one of 18 states having a ‘moderate” civil justice system and no Oklahoma cities ranked among the worst offenders when it comes to out of control legal climates.
Days after the defeat of their lawsuit reform bill in a state Senate committee, Oklahoma House and Senate Republican legislative leaders, joined by business and health care leaders, announced a renewed drive for lawsuit reform in Oklahoma in 2006.
Their comprehensive lawsuit reform measure, House Bill 3120, was voted down along party lines in the Senate Judiciary Commit-tee, but Speaker Todd Hiett (R-Kellyville) and Senator Glenn Coffee (R-Oklahoma City) resolved to amend other measures to include lawsuit reform-giving the Senate another chance to consider the legislation.
The speaker also urged the governor to step forward with leadership on the issue.
Called the “Common Sense in the Courtroom Act,” HB 3120 aimed to, among other things, limit class action lawsuits and eliminate hunting for deep pockets in lawsuits. According to the AP, opponents felt “the bill would close courthouses to citizens who had been harmed by the negligence of others. Proponents said it is needed to protect businesses, doctors and others burdened by lawsuits and high insurance rates.”
The ILR/Harris Interactive survey of more than 1,400 senior attorneys, now in its fifth year, is reported to be the standard by which companies, policymakers and the media measure the legal fairness of states.
In the 2006 study, West Virginia ranked last among the fifty states and, for the fifth year in a row, Delaware is ranked number one.
The ILR ranking survey is available online at www.instituteforlegalreform.org