Tort Reform Myths
So-called “Tort Reformers” have made many false and exaggerated claims condemning plaintiff law. In a 2000 report entitled “Tort Trials and Verdicts in Large Counties, 1996,” the Department of Justice’s Bureau of Justice Statistics disproved many of the unsavory claims made by opponents of our current justice system. The report included disproving the following claims:
- Punitive damages are often awarded, and the amounts are too high.
- Courts continue to increase awards to plaintiffs, and these awards have grown out of control.
- Tort reform must involve caps.
- Juries tend to ignore the law because they sympathize with plaintiffs. They are more likely than a judge to award punitive damages.
- The justice system greatly favors the plaintiff and has become a lottery system.
- Tort plaintiffs are devastating American businesses.
- Federal legislation is needed to curb medical malpractice and products liability claims.
Punitive damages are often awarded, and the amounts are too high.
False. This myth surfaced because of highly publicized cases wherein the plaintiff received millions of dollars in punitive damages. However, the Department of Justice’s Bureau of Justice Statistics’ study showed that punitive damages are awarded in only a small number of cases, and that the amounts are usually reasonable. Statistically, in only 3.3% of tort trials won by plaintiffs were punitive damages awarded. Of these damages, the average amount awarded was $38,000.
Courts continue to increase awards to plaintiffs, and these awards have grown out of control.
False. The study showed that awards for plaintiffs including economic and punitive damages are decreasing – not increasing! Recently, juries have been awarding smaller damages to plaintiffs, especially in smaller cases such as automobile accidents. In the late 1990s, Jury awards declined by 47%, from $57,000 to $30,000. Despite efforts by plaintiff attorneys to educate the public (and potential jurors), “tort reformers” have promoted the belief that plaintiffs are using the justice system as a lottery. It is important, therefore, to make a commitment to educating citizens regarding the justice system and tort law.
Tort reform must involve caps.
False. There are many potential reform systems that states can employ that do not require caps. These include venue shopping, joint-and-several liability, and class-action issues that will reduce the number of plaintiffs and payout's. There are also ways to reduce frivolous lawsuits and punish the actions of unethical attorneys.
Juries tend to ignore the law because they sympathize with plaintiffs. They are more likely than a judge to award punitive damages.
False. Studies show that judges are actually more likely to decide in favor of a plaintiff than juries are. Of the 48% of tort trials that plaintiffs win, a judge has decided 57%. The truth is that the likelihood of a plaintiff being successful depends on the type of case he or she presents. In most premises liability, products liability, and medical malpractice cases, judges look more favorably upon a client than juries do. For example, in premises liability trials, judges decide in favor of the client 52% of the time versus the 38% by a jury. Automobile accident plaintiffs won 63% of cases tried before a judge, and only 57% tried before a jury. Finally, in medical malpractice, only 23% of cases tried before a jury ended in favorable decisions for the plaintiff. 38% of medical malpractice cases tried before a judge were successful for the plaintiff. Also, plaintiffs seeking punitive damages are much more likely to be successful in a bench trial than a jury trial. In tort trials tried in 1996, judges awarded punitive damages to 8% of victims. Juries awarded punitive damages to only 3% of victims.
The justice system greatly favors the plaintiff and has become a lottery system.
False. Compensatory and punitive damages are actually much smaller than “tort reformers” would like the public to believe. Whether handed out by judges or juries, the median award to plaintiffs winning their tort trials is $31,000.
Tort plaintiffs are devastating American businesses.
False. Most tort claims (42%) involve individuals suing one another – not individuals suing businesses. For this reason, the claim that American businesses would greatly benefit from “tort reform” is false. The truth is that most lawsuits do not involve an individual suing a business. In fact, only 39% of tort claims involved an individual suing a business.
Federal legislation is needed to curb medical malpractice and products liability claims.
False. Products liability and medical malpractice cases are not overloading or overextending our courts. Medical malpractice comprises only 11% of tort cases and defective products only 2.3% (not including asbestos cases, which were another 1.8%.) The truth is that 49% of tort cases involve automobile accidents – cases wherein individuals are suing one another.
