Engineering Inc. - March/April 2005 - (Page 11)

It's definitely a better legislative climate than in the past, not so much in Republican vs. Democrat, but and not on merit. ACEC Chairman, Bill How- ney and member of the ACEC in tort reform Combine that with the judi- ard, said legal reform is needed to Risk Management Committee. cial goal of quick case resolution balance an out-of-balance legal In addition to the high cost of supporters vs. non- and the creation of jurisdictions system. Legal reform is impor- defending himself, the Nevada supporters. Achieving that are openly slanted toward tant in protecting our businesses engineer also found that his lia- plaintiff cases and excessive jury from frivolous lawsuits or the bility insurance carrier refused to significant reform awards, and the industry experi- g a m i n g of the system to keep renew his coverage. He only was that actually changes ences a perfect storm of abu- cases in lenient state courts. More a b l e to secure coverage from the abusive legal sive legal practices. and more engineers are becoming a n o t h e r insurance carrier by the answer to, `who else can we agreeing to an astronomically environment still, Jackpot Jurisdictions sue?' in a legal system that is out high deductible. however, remains a Something developed during of balance. T h e burden of cost in difficult process. Black's Law Dictionary defines the last few decades, says Sean defending yourself against a friv- McBride, communications vice o l o u s lawsuit can be tremen- tor t as an injury to someone's SHERMAN JOYCE p re s i d e n t for the Institute for d o u s , said Charles Kopplin, person, reputation or feelings, AMERICAN TORT REFORM Legal Reform, an affiliate of the A C E C 's Risk Management or damage to real property. U.S. ASSOCIATION ATRA U . S . Chamber of Commerce. C o m m i t t e e chairman. To tort costs have steadily increased, The incidence of plaintiff attor- spend $50,000 is common. It reaching a record $246 billion n e y s developing relationships amounts to nothing more than a in 2003 approximately $845 with judges, who in return have shakedown. f o r every American. This shown favoritism, has increased. represents a 5.4 percent increase Legal reform is This in turn has led to the cre- i n tort costs from 2002, important in according to U.S. Tort Cost: a t i o n of legal environment 2 0 0 4 Update, published by abuses or `jackpot jurisdictions.' protecting our A number of states represent Tillinghast Towers Perrin. businesses from p r o b l e m areas, McBride says, Much of the fight to enact tort pointing to West Virginia, Illi- reform legislation at the federal frivolous lawsuits or Chairman F. James Sensenbren- nois and California, as primary l e v e l has focused on medical the gaming of the ner R-Wis. , believe significant culprits, with Madison County, providers, which long have strug- system to keep cases tort reform can be achieved with Ill., as the poster child for law- gled with the high costs of mal- the new 109th Congress. Frist suit abuse in America. practice insurance and malprac- in lenient state recently announced his inten- The Tillinghast annual report tice awards. While this problem courts. More and tion to make class-action reform on the U.S. tort system lists Mis- has affected the industry from more engineers are an immediate priority for Con- sissippi, West Virginia, Alabama, the standpoint of higher health g re s s . In February, the Senate Louisiana and California as the insurance premiums, engineers becoming the answer Judiciar y Committee approved five most abusive states of tort are increasingly becoming the to, `who else can the Class Action Fairness Act, to a n d contract litigation, com- direct targets of lawsuit abuse allow multistate class-action liti- p a r e d to Delaware, Iowa, and having to face the reality if we sue?' in a legal gants to move their cases from Ne b r a s k a , North Dakota and y o u are sued, you must pay, system that is out state to federal court, thus avoid- S o u t h Dakota, which were whether you're at fault or not. of balance. ing judicial hellholes. judged the five best states. You can point the finger at And in late January, Rep. Significant tort reform now is a the trial lawyers for the shape of BILL HOWARD, ACEC CHAIRMAN Lamar Smith R-Texas , intro- major legislative goal of President things, says Wieczorek. About d u c e d The Lawsuit Abuse George W. Bush's second term. 2 0 years ago many of them R e d u c t i o n Act, which would In addition to personally visiting determined that a lot of money establish mandatory sanctions Madison County, Ill., to promote a l s o could be made by suing for filing frivolous lawsuits in t o r t reform, he addressed the developers and contractors. The violation of Rule 11 of the Fed- national need during his State of problem the design community eral Rules of Civil Procedure. the Union address. is facing is that they get brought The Act would abolish Rule Ma n y high-ranking govern- in on lawsuits based on the levels 1 1 's current free pass that m e n t officials, such as Senate of insurance and the dollars a allows lawyers to avoid sanctions Majority Leader Bill Frist R- defendant has to defend to pro- by simply withdrawing frivolous Te n n . and House Judiciary t e c t their name and integrity, M a r c h l April 2005 ENGINEERING INC. 1 1

Table of Contents for the Digital Edition of Engineering Inc. - March/April 2005

Table of Contents
From ACEC To You
Ask Members
News & Notes
Market Watch
Legislative Action
COVER STORY: A Perfect Legal Storm
Interview With F. James Sensenbrenner, Jr.
Is There an Engineer in the House
The ABCs Of ESOPS
ACEC/PAC Donations Break All-Time Record
ACEC Roundtable
Members In the News
One on One

Engineering Inc. - March/April 2005