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News from Sieben, Grose, Von Holtum & Carey, LTD.

Tort Reform

Introduction

  1. President Bush and others have addressed rising health care and malpractice insurance costs with two words: tort reform.
  2. Tort reformers would like to limit non-economic damages (like pain and suffering) in liability cases to figures around $250,000.

The Myths

  1. Myth: Americans are absurdly litigious.
    1. Fact: In fact, most lawsuits are not individuals suing businesses. Most lawsuits are businesses suing other businesses.
    2. Fact: The number of lawsuits is not exploding – it has been fairly flat for the last decade, even showing a slight decline.
  2. Myth: What kind of system do we have when a woman who spills her coffee can sue for millions from McDonald's? Frivolous lawsuits are out of control.
    1. Fact: Before that suit, McDonald's used to heat their coffee to over 180 degrees, just short of boiling.
    2. Fact: The 79-year-old woman in question got third-degree burns from the coffee, requiring skin grafts. She asked for the relatively modest sum of $20,000 from McDonald's. The corporation refused to settle.
    3. Fact: With no other options, she pursued the lawsuit and won. She was awarded $160,000 in compensatory damages.
    4. Fact: The jury decided to award $2.7 million in punitive damages. McDonald's policy was to heat their coffee to a level that was far too hot to drink and would cause severe burns if it came in contact with human skin. They admitted they had been aware for more than ten years (hundreds of people had been burned by McDonald's coffee, and a number had filed suit before).
  3. Myth: Jury awards have gone through the roof, and million-dollar awards are now the norm.
    1. Fact: The median jury award in 2002 was $30,000. This represented a decline of 30% from the year before.

    Facts about Minnesota Litigation

    • The court is busier than ever due to criminal, juvenile and family cases.
    • The only area of growth in civil litigation is commercial (corporations suing one another).
    •  The public has been hammered for along time with claims of lawsuit abuse that don’t fit our experience in Minnesota.

    Why the Jury Should Decide

    • Tort reform advocates are essentially saying that you can't trust juries made up of ordinary citizens, so instead we should simply trust corporations not to make products that harm people, or doctors not to make mistakes that can ruin people's lives.
    • Juries, when presented with all the facts, are the best way to determine what is fair.
    • Without the ability to assess significant damages, what will be the motivation for large corporations to change their behavior?
    • An attorney who understands the facts of the case and is interested in protecting the rights of their client can help a jury understand what the best solution is.

    Contact the law offices of Sieben, Grose, Von Holtum & Carey for a free consultation. We encourage you to make this first step toward resolving your legal matters so that you can get back to your life.