Leading the pack against lawsuit abuse

What frivolous lawsuits cost America

By Amaris White
From the March 2006 Print Edition

Don Wolfe is president of the Silicon Valley Citizens Against Lawsuit Abuse (CALA). He has met with and advised President George W. Bush and is often asked to speak at various venues in Northern California. Wolfe shared some of his thoughts on lawsuit abuse with the Patriot.

California Patriot: Do you see lawsuit abuse as a big problem in the United States?

Don Wolfe: Abuse of the civil justice system in California and throughout the United States is a huge problem. Surveys and studies by the American Tort Reform Association, the Manhattan Institute, and others, show that the cost to every American is approximately $832 per year. For a family of four that’s over $3,200 each year as a “lawsuit tax” when the courts are misused. That’s in addition to the distraction, disruption and stress to families and company personnel — be they large or small.

CP: What would you do to help fix lawsuit abuse?

DW: Well, the work of CALA is to educate the public about the human and financial cost of frivolous lawsuits to the consumer and the taxpayer. We stimulate a public debate on the need for civil justice reform. So armed with accurate information, we recommend to the citizenry that they hold their legislators accountable for that reform. Ours is a grassroots effort to bring about balance to the scales of justice. Please keep in mind that our effort is very positive. We are a nation of laws, and we need lawyers. We do not engage in lawyer-bashing, but we do demand justice and not greed in our courts.

CP: What do you think of lawsuit losers paying for costs?

DW: That question could best be addressed to an Englishman, for it is the system in Great Britain, and elsewhere. No less a luminary, than Nobel Prize winner, Milton Friedman, Ph.D., and Senior Fellow at the Hoover Institution, agrees that it should be the norm in the USA as well. Dr. Friedman told me recently that the “if you sue and you lose — you pay” form of civil justice would unclog our courts, allow legitimate cases to be heard, and discourage misuse of the courts. How would that affect the poor? Well, in England they have an arrangement wherein there is an earnings floor: if your income is below a certain level the government will pay your costs if you lose a case. This way, the courthouse doors remain open for all, as guaranteed in our U.S. Constitution, and justice prevails. The merit of the British system is illustrated by the fact that last year there were 70,000 product liability lawsuits in the United States and only 200 in England.

CP: What do you think of specialized courts (i.e. any medical suit would go before a medical court with judges especially capable and knowledgeable of such material)?

DW: When you consider a means to unclog our courts, this would be a big step forward. National legislation is now being proposed to affect such a system. Panels of experts, specially educated judges, and a form of appeals, would focus on medical suits, assure justice, and clear the way for our overburdened general civil courts to address matters without delay. Who is it that said that “justice delayed is justice denied?”

CP: Do you think lawsuits are a way to keep companies accountable for their actions, and are you afraid that reforms would change this?

DW: Any wrongdoer, either a company or a private citizen should be held accountable, have their day in court, and be brought to justice. Using the threat of lawsuit to “extract” a settlement from a company, however, can be considered a form of extortion. CALA attempts to bring awareness to citizens that the price of frivolous lawsuits is embedded in the cost of our products and our produce. When the courts are misused we all pay and we all lose.

CP: Would you want changes at the federal or state level, and why?

DW: Of course, we have a dual — not duplicate — system of federal and state courts. Both can and are misused on too many occasions. Hence, reform in both jurisdictions is appropriate. Although CALA focuses mainly on the local level, we were instrumental recently in helping to bring about federal reform. At the invitation of the President of the United States in January of last year, I consulted with him in the Oval Office concerning CALA’s grass roots ability to educate legislators about needed improvements. The result was passage of the Class Action Fairness Act of 2005. President Bush was kind enough to invite me back to the White House for the signing of the bill in February.

CP: Do you see this problem becoming better or worse?

DW: Thanks to an active public alerted by CALA, citizens are demanding improvement of our civil justice system. State Assembly members, senators, as well as federal legislators are listening. Thanks to a prudent use of our first Amendment liberties, the proverbial pendulum, and the scales of justice are coming back into balance … ever so slowly.

CP: Do you have any final words for our readers?

DW: We ask all students and citizens to continue the fight and to speed up civil justice reform measures. It’s your system and the effort is ongoing. Serve on a jury when asked, contact your legislator on the issues, and join in the CALA cause. In this way, I’m confident that the result will be true justice and not greed in our civil justice system.

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