Ever since his days as governor of Texas, President Bush has been an advocate of limiting laws relating to civil lawsuits brought by individuals against large corporate interest and insurance companies who cause harm. Despite the unfounded legitimacy the president’s support brings to cause, the numbers show that the only real winner in the “tort reform” game is the insurance companies and large corporations.
The Texas Legislature took up the so called “tort reform” issue in 1995 and then again in 2003. The laws in the state of Texas were wrenched from the hands of the people by high paid lobbyists representing wealthy corporate interests. Individuals like Ken Lay, former CEO of Enron, Richard Weekly, a homebuilder frequently sued for dangerous home construction funneled massive amounts of money into the coffers of politicians who they knew would be sympathetic to their cause.
When the dust settled, civil laws were left in a sorry state for individuals seeking recovery for wrongs committed against them. The laundry lists of changes include:
- Capping Medical Malpractice Damages at $250,000.00
- Reducing the effectiveness of Product liability causes of action
- Limits information jurors hear regarding personal injury medical expenses
- Changes information Texas personal injury attorneys can present to jurors
The real winners and losers in this story are not the same people the “tort reform” proponents would have us think. While the courtroom door has been slammed shut in the face of many victims of medical malpractice, the insurance companies in Texas re reaping near record profits.
Reports released in early 2008 by the Texas Department of Insurance indicated that insurance companies had yet another year of stellar earnings as they passed their fifth straight year of beating or equaling a standard benchmark for reasonable profits.
Overall, the Texas insurance industry maintained an average loss ratio of 36.5 percent in 2007, according to the reports. Simply put, insurers paid out 36.5 percent of premiums to cover losses - far below the 58 percent figure often cited by industry experts as a reasonable measure of profitability. This gigantic industry is only gaining more power as they amass more profits and resources to influence other state legislatures across the country.
The question remains for the other states our country, what can be done to prevent this from happening in your home?
The answer lies in preparation for each upcoming legislative session, and constant education of the public on the true winners and losers of “tort reform”. The front lines to any attempt by insurance companies and large corporations to reduce the rights of injured individuals are consumer groups and local Trial Lawyer associations. Each of these types of organizations generally maintains the infrastructure to mobilize the necessary resources to combat political action, and hopefully cultivate the necessary legislative contacts who will keep the best interests of the population at hand.
Law firms that generally represent individuals in personal injury actions can also serve a useful role in educating their client bases on the ill effects of “tort reform” though newsletters, communication to legislators, and generally serving people who have been forced to use the state’s tort system to hold a wrongdoer accountable.
Each individual voter in each state is ultimately the voice that any legislator hears when casting a vote for or against “tort reform”. Proper mobilization and preparation for the inevitable attempts to increase insurance company profits at the state legislative by peddling “tort reform” can level the playing field when it comes to the attempt to pass these types of laws.
Justin Demerath, a personal injury lawyer in Austin, Texas, has dedicated his law practice to helping people who have suffered damages at the hands of others, in the state of Texas, recover monetary compensation. For more information, please visit the Texas personal injury law firm Texas personal injury law firm O’Hanlon, McCollom & Demerath.
