supplier issues

Tort Reform

Description: Civil justice reform is a necessity for U.S. businesses.  While Congress has not been successful in passing major reform bills, many states have passed legislation.

StatusIn 2006, Congress failed to pass asbestos reform or the Lawsuit Abuse Reduction Act (LARA).  Although substantive legislation was considered in the states, real reform was difficult to move on Capitol Hill.  MEMA voiced the industry’s opposition to legislation in California (S.B. 1489) that would have allowed the award of attorney’s fees and investigation costs to the Attorney General if the Attorney General prevailed in enforcement of a public rights action in the following types of cases: Corporate Securities Act violations, anti-competitive practices, the Unruh Civil Rights Act, water pollution, disability rights, environmental claims, nuisance law, air pollution, and other statutes.  After substantial work in the business community, the governor vetoed the legislation.

Impact on Industry:  According to the American Tort Reform Association, America's $246 billion civil justice system is the most expensive in the industrialized world.  Often, the resulting high insurance costs drain resources from other necessary company investments.

2008 Anticipated Action: Litigation reform proposals are unlikely to move in the 110th Congress.  MEMA will join others in the business community to aggressively oppose legislation that would weaken the position of business in the legal arena.  Additional issues will continue to arise in the states.  Market segment association members should watch the MEMA Action Center and the Washington Insider for news from the states.

MEMA Staff Contact:           Ann Wilson     
                                                Senior Vice President, Government Relations
                                                Phone: 202-312-9246
                                                Email: awilson@mema.org