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Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
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In reading the post around here, I see lots of people advocating for tort reform, i.e. limiting judgments for everything from medical malpractice to product liability. Why? The arguments say it hurts business and drives up the costs for everyone. Some of those making the arguments are also supporters of free markets, which is capitalism. One of the principles of capitalism is that the market will regulate itself. The costs to the company will outweigh the costs of continuing the product and/or people will just stop buying the product.
Focusing on the italicized part, that principle depends on people being able to charge the company for making something dangerous/defective. And how can we, the little guy, charge the company for an injury except to sue? Or, as what often happens, you go to your insurance company for coverage, and your insurance company pays your claim, but then turns around and sends the bill to the company that injured you or destroyed your property. A lot more of that happens behind the scenes than everyone may be aware of. In my line of work, I see it a lot. Say a coffee pot catches fire and destroys a kitchen. The homeowner's policy pays out the claim, but (and the homeowner may or may not know this), the insurance company turns around and submits the costs to the coffee pot maker.
My premise is that you either need strong regulation to prevent defective things from entering the marketplace, businesses from undertaking deceptive practices, and doctors from making mistake (ok, I don't know how you could do that - my theory isn't perfect), -or- you need to allow the little guy to somehow charge the company for every thing they do that hurts people, and lawsuits are the way that happens.
Other thoughts?
Also, please do not bring up the McDonald's coffee case unless you can also state unequivocally that you expect, and it is perfectly ok for, coffee to be served hot enough to cause THIRD degree burns that require skin grafts. I know someone will bring it up, as thats always the poster child for frivolous lawsuits, but if you look at all the facts of the case, its not such a good one. If you want to discuss frivolous cases, lets go for the $54 million pants
The arguments say it hurts business and drives up the costs for everyone.
Nothing drives the cost "for everyone" up or down. Our economy contains a fixed quantity of wealth, and that wealth is set in motion to produce a fixed quantity of goods and services. Everything we consume costs what we earn. Everything we earn is spent on what we produce. Everything we produce, we consume. It's a fluid circle, but it's still a bound circle. When you tie the ends of a string together, you can form the loop into an infinite variety of shapes, but the length of string remains the same. The sum of the wealth and the the aggregate cost of the product remain constant and equal.
There is a big settlement, the lawyer gets a million dollar fee. He buys a new sailboat, the sailboat company hires employees, they buy toasters. The toaster company hires employees, they buy health insurance. The insurance company pays lawyers when they lose lawsuits, etc.
Becasue when you look at the civil courts its easy to see that most cases arwe not judgeents at all. What has happen is that suits are now comonly broguht because they think there is more chance for settlement. Comapnies have responded by buying insurance. that drives price up with so mnay law suist that have little merit. The loser in the end is everyone really.We need to be resonable and that includes the m,assive feess that attorneies get in these suit that poften makes those high CEO salaies look like they are deserved.We do need justice that is more like fight it if you want and risk losing more or settle for less and besides you have insurance. The we gripe because insurance for other things is driven higher.IMO civil suits have gotten out of wack;and those you often file are immune to counter suits because you can't get blood out of a turnip. Them there those who have illgit claims but can't get in court because there a ten million ahead and thier own lawyers tell them settle now for less or wait 7 years or 20 if there are appeals.
One thing that is necessary is LIMITS. The dollar amounts awarded in some of these lawsuits is nothing short of insane.
There also needs to be laws enacted to reign in greedy, money-grubbing, ambulance-chasing attorneys.
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So, the free market doesn't work here and we need the equivalent of price controls than right?
Now, do you agree we need to limit medical fees charged by physicians and hospitals, salaries of top corporate executives, and products that are essential for the public good?
Salaries for corporate executives and physicians easily outpace those for attorneys. Also, the medical sector of the economy consumes a much higher proportion of GNP. So, if you think the one is necessary (limits on lawsuits and lawyers) I'd certainly like you to be able to explain why the other things don't require the same regulation.
So, the free market doesn't work here and we need the equivalent of price controls than right?
Now, do you agree we need to limit medical fees charged by physicians and hospitals, salaries of top corporate executives, and products that are essential for the public good?
Salaries for corporate executives and physicians easily outpace those for attorneys. Also, the medical sector of the economy consumes a much higher proportion of GNP. So, if you think the one is necessary (limits on lawsuits and lawyers) I'd certainly like you to be able to explain why the other things don't require the same regulation.
Setting limits on punitive damage settlements and the free market are completely and totally unrelated. Anybody who thinks they are doesn't understand how things work.
In a free market, I CHOOSE if I want to (for instance) shop at WalMart, Target, Shopko, KMart, etc.
In a free market, I CHOOSE if I want to buy a Ford, Chevy, Toyota, Kia, etc.
In a free market, I CHOOSE which hospital I want to go to.
There is no connection whatever to putting a cap on punitive damages. They simply are unrelated.
Seeing as insurance and letigation and penatly costs of malpractice lawsuits are only 1% of the total cost of healthcare, I don't see what the big deal is about TORT reform is.
I think its more of a straw man for people to hold up, and for others to punch at. I say let it go, its obviously not important.
Seeing as insurance and letigation and penatly costs of malpractice lawsuits are only 1% of the total cost of healthcare, I don't see what the big deal is about TORT reform is.
I think its more of a straw man for people to hold up, and for others to punch at. I say let it go, its obviously not important.
Tort reform is desperately needed, though it doesn't affect the medical profession as badly as it affects other companies.
By the way, do you have a source for that "1% of the total cost of healthcare" figure? Thanks!
Rather than claiming "tort reform is desperately needed" how about showing us some statistical evidence (like I have) that it really is.
I have no doubt there are some lawyers out there earning big incomes. This is true of virtually every occupation though. You have a few people at the very top earning huge sums.
No one likes lawsuits. However, they are a check of sorts on the arbitrary power of interests like big business, governmental entities, and individuals who behave badly. Until someone shows me a better alternative, I'm reluctant to change what we have.
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