John Boehner, September 17, 2004

Would an extra few hundred dollars be a welcomed addition to your bank account each year? Of course it would be. Considering that often-frivolous tort litigation -- or trials -- costs each U.S. citizen just over $800 per year, substantial reform of an out-of-control legal system is in order. And taxpayers would reap the benefits -- possibly regaining a portion of that $800 per year.

The U.S. House of Representatives recently approved the Lawsuit Abuse Reduction Act to take a step in that direction, and President Bush has made legal reform a cornerstone of his domestic agenda.

Did you know that since 1930, growth in lawsuit costs has been four times that of the overall economy? That in the last ten years, the number of lawsuits filed in state courts jumped 1,000 percent, and the number filed in federal courts have increased 300 percent? Or, how about this eye-opener? The total of the top 100 verdicts for 2002 was more than three times the total for 2001. The largest punitive award in 2002 was a whopping $28 billion, as a matter of fact.

During a time when we are just getting the nation’s economy moving again, this rapid increase in lawsuits has become a real obstacle to continued growth. Not only do frivolous lawsuits bankrupt individuals and ruin reputations, they also drive up insurance premiums and increase health care costs. This effect cascades throughout the economy, and we all pay the price. In 2002, for example, litigation cost the U.S. economy $233 billion. Over the next ten years, lawsuits are projected to cost our economy nearly $4 trillion.

It is not our intent to halt all lawsuits or deny the right of deserving individuals to have their day in court -- and receive justice. That’s why the legislation passed by the House takes aim at the most frivolous of all lawsuits by proposing some simple, common sense changes.

Reading through a list of the most outrageous lawsuits is rather humorous -- until you remember that these cases are true. There’s a rather infamous class action lawsuit against Cheerios in which the trial lawyers were paid almost $2 million in fees while the participants in the lawsuit received coupons for a free box of cereal. Or another suit brought against computer monitor manufacturers in which the trial lawyers received $6 million, while participants garnered their choice of either $6 in cash or a $13 dollar rebate on new merchandise.

Do you consider either of these examples to be fair? Of course not. That’s why these types of junk lawsuits are precisely those we’ve targeted. Specifically, the bill passed by the House would make sanctions against attorneys or parties who file frivolous lawsuits mandatory rather than discretionary. It would remove a "safe harbor" provision that allows plaintiffs and their attorneys to avoid sanctions for frivolous suits by withdrawing them within 21 days. And it would permit judges to order plaintiffs to reimburse reasonable litigation costs, including attorney’s fees if their case was found to be especially frivolous.

The bill also would require plaintiffs in civil actions to sue only where they live or were injured, or where the defendant’s principal place of business is located. Often, we find trial lawyers jumping from one jurisdiction to another, looking to maximize their pay-out in a "lawsuit lottery" of sorts. That’s unacceptable and a burden on our system. Finally, the legislation would mandate a 1-year suspension of a law license after a lawyer has filed 3 or more frivolous lawsuits in the same federal court.

Whether it is this year or after the presidential politics subsides in 2005, Congress and the White House have no choice but to make sensible changes to our legal system. If American workers are to continue succeeding in an increasingly competitive global economy, we simply cannot allow outrageous lawsuits to drive up the cost of doing business inside our borders. Lawsuit abuse is holding back our economy.

Congressman John Boehner, a Republican, represents Ohio's Eighth Congressional District, which includes Miami, Butler, Preble, Darke, and Mercer Counties.