Tort Reform, Texas Style

There is an incredibly interesting article in this month's ABA Journal. Sadly, it's not up on the web yet, but if it is posted, I will definitely drop a link.



In 2003, Texas passed a massive tort reform bill, capping non-economic damages in medical malpractice cases to $250,000. Trial lawyers, the bogeyman of lawyer-haters, were the main target of the bill, which hoped to prevent runaway juries from making doctors pull up roots and head out.

However, it has not only hurt the trial lawyers. Some interesting points from the article:

• The crusade against trial lawyers has been effective. Many of the largest plaintiff's firms have either split up, and those remaining make far less money (on the order of 10% of before).
  
• However, not only are the plaintiff's firms hurting, the defendant's firms are, as well. With so many fewer suits coming against their hospital and insurance clients, there just isn't enough work to support the largest firms. Many of these have also disbanded.
  
• Whereas before, one attorney mentioned in the article would formerly spend $80k-100k in preparation of a case, now they can't even settle for that much, even when there are clear damages, and attorneys are turning down cases they used to chomp at the bit to get.
  

"Hooray!" come the cheers from those outside the legal profession. And, even though I am going to be a lawyer (hopefully!), there are a lot of lawsuits that probably shouldn't get past summary judgment.

Not so fast... What else might happen when there is no reason to take a case?

It is especially bad for the poor and the elderly. Now, plaintiffs' attorneys won't take cases unless the person is already well-off., and can recover lost wages and earning potential.

So, what does this all mean? In Texas, unless you're rich, don't get hurt!

NOTE: One more reason Texans wanted to cap noneconomic damages? Trial lawyers are historically Democrat donors... Cut their income, and you're cutting the donations to the Democrats.