The Big Lie on Frivolous Lawsuits

There is no explosion of litigation in America or Pennsylvania. The facts show that the civil justice system really is the last resort for people who have been seriously injured by the negligence or gross misconduct of the most powerful forces in America: large corporations, big drug companies, medical special interests and, most of all, insurance companies. Many of the statistics which counter the myth of the litigation explosion come from the Bush Administration, which has helped to perpetuate the myth that there is a flood of frivolous lawsuits that is hurting the economy.

Although big business and insurance companies continue to "cry foul" about crippling verdicts and attorneys who represent victims of negligence, the fact is that the number of cases filed by attorneys are down and the average amount of verdicts are down.

For example: In Pennsylvania, there was a 38 percent decline in medical malpractice filings from the years 2000-2002 according to the Administrative Office of the Pennsylvania Courts in a summary dated April 25, 2007.

In Philadelphia, the largest judicial district in the state, the decline has been over 50 percent. 2006 saw the fewest number of jury verdicts resulting in plaintiff awards, according to the same study.

Across the country, the number of personal injury trials in federal court is down nearly 80% since 1985 according to the Bush Administration's own Bureau of Justice Statistics. In 1985, 3,600 personal injury cases were decided by a judge or jury in the United States District Courts across the country. By 2003, that number had dropped to less than 800.

Likewise, the number of personal injury trials in state courts is down by 31.8% between 1992 and 2001. These statistics were compiled by the U.S. Justice Department in a study of the nation's 75 largest counties.

Medical malpractice cases initiated in Philadelphia are down by 60%. Automobile personal injury filings, which make up a majority of all injury cases, have fallen by 5% since 1993 and by 14% since their high in 1996 as found by the Examining the Work by State Court study of 2003 performed by the National Center for State Courts.

Payouts in Personal Injury Cases are way down too. The median payout for all personal injury cases dropped 56% between 1992 and 2001. The median inflation adjusted payout in all personal injury cases dropped by 56.3% in those same years to $28,000, according to the Bush Administration's own study.

Plus the public must be made aware of what the Judges already know. A 2006 survey by the Federal Judicial Center - the research and education agency of the federal tort system - shows most federal judges do not view "frivolous lawsuits" as a problem. 70% of those who responded said that groundless litigation is either a 'small problem' or a 'very small problem', and 15% said it was no problem at all.

Even business leaders, despite their outcries to the contrary, put "fear of litigation" at the bottom of their lists of concerns. Health care costs ranked #1, taxes ranked #6 and litigation fell far behind at #10, according to an industry study by the National Association of Manufacturers in 2006.

Insurance companies like doing business in Pennsylvania so much that State Farm, the largest carrier in Pennsylvania, recently applied for a rate decrease. The Pittsburgh Tribune Review reported on April 16, 2007 that one reason cited for the positive industry climate is Pennsylvania's "calm" in terms of legislation.

Before you believe any of the urban myths about frivolous lawsuits - you know the ones, like the story where a woman allegedly threw a soft drink at her boyfried who then slipped on the wet floor and won a claim against the restaurant. Well it turns out that the story was attributed to the Stella Awards, an annual listing of loony lawsuits. But the Stella Web site points out that the story is a complete fabrication. So if you hear about a case that is almost too good to be true, it probably isn't.

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The Monahan Law Practice
300 North Pottstown Pike
Suite 210
Exton, PA 19341-2233

Phone: (610) 363-3888
Fax: (610) 363-2429