Climate Change Fuels New Lawsuits

No Relief in Sight on Medical Liability

"People make decisions every day about which states and communities to invest in, and business climate truly matters."
--Jeb Bush, former Florida governor, speaking at ILR's 10th Annual Legal Reform Summit

Businesses should brace themselves for the threat of more lawsuits tied to climate change, according to experts attending the U.S. Chamber Institute for Legal Reform’s (ILR’s) 10th Annual Legal Reform Summit on October 28 at Chamber headquarters.

During a panel discussion, Professor Donald Gifford of the University of Maryland, said that two recent major federal court decisions signal that it may be easier to bring climate change litigation against companies.

In October, the U.S. Court of Appeals for the 5th Circuit in New Orleans said that residents and land owners along the Gulf Coast in Mississippi could seek relief from oil and gas, utility, and other companies for damages stemming from Hurricane Katrina on the grounds that the storm was the result of global warming. In September, the U.S. Circuit Court of Appeals for the 2nd Circuit in New York City allowed a coalition of eight states, New York City, and environmental groups to sue coal-burning utilities over climate change.

While these lawsuits continue to make their way through the appeals process, panelists discussed how the trial bar is counting on at least one precedent-setting victory to set off a new wave of lawsuits against businesses for their greenhouse gas emissions.

Medical liability reform was also discussed at the summit. Sen. Jeff Sessions (R-AL) and others said that none of the current health care reform bills moving through Congress adequately address medical liability reform, even though 63% of voters support meaningful medical liability reform as part of the health care debate, according to a poll commissioned by ILR. “Tort reform is a simple way to lower costs,” he said, pointing to a Congressional Budget Office study estimating that tort reform could save the United States up to $54 billion in health care spending over 10 years. Sessions also said that health insurance premiums in Texas had fallen by 25% as a result of state tort reform.

Summit participants emphasized that legal reform across the board is essential to economic recovery and job growth. “When making any decision that impacts our civil justice system, our elected officials should ask themselves one fundamental question: ‘Will this help put people back to work, or will this seed the ground for more job-killing litigation?’” said ILR President Lisa Rickard.

ILR released new research on litigation funded by third parties, a best practices guide for the appointment and nomination of judges, and 101 Ways to Improve State Legal Systems. The summit keynote address was delivered by former Florida Gov. Jeb Bush, who emphasized the importance of a strong legal climate in spurring economic development.

Learn more at www.instituteforlegalreform.com.

Legal Reform Advocates Are Recognized

The U.S. Chamber Institute for Legal Reform issued the following awards at its annual summit on October 28:

Legislative Achievement—Sen. Jeff Sessions (R-AL) for his ongoing efforts in the U.S. Senate to bring common sense and fairness to the legal system.

Judicial Achievement—Ruth V. McGregor, former chief justice, Supreme Court of Arizona, for her distinguished service on the court and for her continued leadership in promoting public participation and transparency in the merit selection of state judges.

State Leadership—The State Chamber of Oklahoma for its years of legal reform advocacy, which helped lead to passage of the Comprehensive Lawsuit Reform Act of 2009—one of the single most significant legislative tort reform packages signed into law this year.

Outstanding Research—The Searle Civil Justice Institute at Northwestern University School of Law for its in-depth empirical research on consumer arbitration, which became a crucial resource in the debate over pending congressional legislation to ban predispute arbitration agreements in consumer and other contracts.