Many Americans believe that tort reform will reduce the number of frivolous lawsuits, lower insurance rates, and make more room in the courts for “real” lawsuits. They believe that tort reform is a rational measure which will benefit the public. In reality tort reform is a concept backed by large corporations which limits the awards that victims may receive and reduces the chance that wrongdoing will be publicly exposed.
Setting a cap on damages allows the defendant to offer a settlement amount equal to highest possible award, removing the risk of trial for the plaintiff, but allowing the defendant to set the terms. Settlements often include confidentiality provisions, meaning that while the plaintiff receives payment, the defendant’s wrongdoing cannot be revealed to the public.
It is true that awards and settlements are often covered by the defendant’s insurance, however, insurance companies have stated publicly that they will not lower premiums even if tort reform places a cap on potential pay outs.
For more information about tort reform, please read the following:
- http://www.atla.org/pressroom/facts/frivolous/index.aspx
- http://www.citizen.org/congress/civjus/tort/myths/articles.cfm?ID=5671
- http://www.citizen.org/congress/civjus/medmal/articles.cfm?ID=9008
- http://www.citizen.org/congress/civjus/specinterest/frontgroups/articles.cfm?ID=800
- http://legalrightsblog.blogspot.com/2004_11_01_archive.html
