There is much angst in Austin as the 82nd legislative session ended Monday, only to be followed quickly by a special session thanks to a last-minute filibuster by a Democrat state senator. Hopefully, though, the session’s successes won’t get lost in the noise. One of those successes is the epic defeat of the Texas Trial Lawyers Association, a millionaire trial lawyer group that once had the Texas legislature in a headlock, and is now unable to muster a single vote in the Texas Senate against the legislation it feared the most: loser pays.
The Wall Street Journal editorialized, “This Texas upgrade will build on reforms in 2003 and 2005 that have vastly improved the legal climate in what has not coincidentally become the country’s best state for job creation. Texas rewrote everything from class-action certification to product liability” — and I would add the state’s medical-malpractice reforms to that list.
No wonder the nation’s CEOs list Texas as the best state for business.
The success of ‘loser pays’ is destined to be viewed as a key victory for the Republican legislature over a group that once enjoyed almost limitless influence in the state: the Texas Trial Lawyers Association, which lobbied aggressively against the law. Prior to the reforms instituted in 2003 and 2005, Texas was an ambulance chaser’s paradise. Nowadays, even the $13 million the trial lawyers spent to defeat Perry and other pro-tort-reform Republicans in the 2010 election had little impact. In a stunning rebuke, Lt. Gov. David Dewhurst stared down the trial lawyer lobby and shepherded the measure through to a 31–0 vote in the Senate.
More important than the defeat for the TTLA, is what the reform actually does: It makes it less legally perilous to operate a business in the state of Texas.
‘Loser pays’ reform will result in fewer frivolous lawsuits, lower litigation costs, and more expedient justice for legitimate claims. Just as important, the passage of loser pays is yet another example of how Texas has taken the national lead in job creation and the fostering of a strong business climate. Immediately following Perry’s earlier reforms, the number of physicians applying to practice rose by 60 percent, filling a increasing need across the state, according to the Journal. Likewise, by tossing off the threatening shroud of frivolous lawsuits, Texas is removing yet another barrier to small business expansion and job growth.
As a bonus, trial lawyers will also have less money to spend supporting Democrats next go round.
If it were ordered at the discretion of the jury this would be a good thing.
If the loser always pays regardless of the merits of the lawsuit, then this will just put a thumb on the other side of scales where it shouldn’t have been on the first side in the first place.
Why leave it to the discretion of a jury? At the point where the jury has decided who won the case and who lost, they’ve already exercised their discretion as to the nature of the arguments.
Many frivolous cases are brought up in attempts to drain the other party of financial resources, and this stops that.
If the party bringing the case to court truly believes their side to have merit, then the risk of paying the other side’s legal cost should be of minimal concern.
No. The jury has decided one party won and won party lost. They haven’t decided one party was BS from the get go. Whether the losing party made an honest effort is a different question.
One additional thing, I’ve read this law may not be symmetrical–it may be biased against plaintiffs. To be just it should apply to all parties, including the state when it is a party to a suit.
Good on Texas. Having seen the sorts of Law Suit abuse that can happen, this can only be good in the long run
1992 is the year zero P.C. That is the landmark year a goofy old woman wanted McDonald’s to pay for her trying to hold scalding hot coffee between her legs in a flimsy cup and the year America went officially nuts.
A lot of people still think that lady was right to sue and so we are still officially nuts.
It is now the year 19 P.C. (political correctness) and whatever one thinks of this law, it arose directly from the year zero.
Hey Bryan.
Wasn’t there some uber wealthy trial lawyer and Democrat kingmaker in Texas who was funding many/most of the Democrats in Texas, like Bill White, for instance?
I seem to recall something about that but don’t remember the particulars.
Yup, Steve Mostyn. And he lost on this, big time.
The enormity of this win and its implications for the body politic of Texas cannot be understated.
That is simply terrific. Great job, Texas!!
Duh. Hit the link P. Henry. Sorry.
What people fail to understand is that under the supposed “Loser Pays” rule, a plaintiff could actually win the trial, be awarded a verdict and still have to pay the other side, sometimes more than awarded by the jury. Justice? Fairness? Level playing field? I think not. Just another way to scare Texas citizens away from excercising their constitutional right (both U.S. and Texas) to have a jury of their peers evaluate their claims. Everyone seems to fotget that in virtually every case a summary judgment is filed and ruled upon by the judge, most of whom are conservative Republicans. If a case is at trial, it has already undergone scrutiny by the Court. Additonally, Texas law provides that a Defendant can file its own claim if it believes the lawsuit was frivolous. Very few are ever filed.