The first week of October marks Lawsuit Abuse Awareness Week (LAAW), a time to call attention to the abusive lawsuits that are alive and thriving in California. For those who question whether lawsuit abuse is still a problem in California, Citizens Against Lawsuit Abuse (CALA) suggests reflecting on the seven signs that we have a lawsuit abuse problem.

California has a well-deserved reputation for lawsuit abuse. A recent study by the Institute for Legal Reform ranked California 45th out of the 50 states based on its litigation climate. Los Angeles topped the list of counties nationwide with the least fair and reasonable litigation environment while San Francisco ranked seventh.

Fair and thoughtful juries protect reason and sensibility in our courtrooms, yet millions of Californians do not serve. A study conducted by Dr. Daniel Klerman of the University of Southern California Law School found that more than one-third of Californians summoned for jury service either fail to respond or request to be excused from service. 

Due to the huge payment verdicts that juries hand out, both in the public and private sector, lawsuits are now considered a cost of doing business. We all pay a “lawsuit tax,” because when businesses are unfairly sued, they are forced to pay legal fees and often settle regardless of the merit of the case.  This results in higher prices for goods and services, lost jobs and a decreased tax base. This past year, Tillinghast-Towers Perrin estimated that cost at $880 for every man, woman and child in America. Other studies have placed the number much higher, closer to $10,000 for a family of four.

Similarly, lawsuits against our state and local governments cost us all, as we – our tax dollars – pay for verdicts, settlements and outside counsel. In just two fiscal years, the cities and counties of San Diego, Los Angeles and Sacramento, together with Orange County spent more than $276 million on settlements, verdicts and outside counsel. Surely California taxpayers would prefer to see their tax dollars put to better use, such as paying for parks, libraries, police officers and firefighters.

Record-breaking verdicts in California encourage people to seek damages when something goes wrong in their lives, even when they share responsibility. Current law does nothing to discourage the abandonment of personal responsibility.

Many of these verdicts are the result of convincing, yet often suspect “expert witness” testimony. Personal injury lawyers seek out so-called “experts” to testify regardless of their background and experience in the relevant field. A recent survey of California’s specialty physicians found that 47 percent of those surveyed rate the overall quality of medical witness testimony as “poor” or “only fair” and more than three in five report that they have personally seen or heard statements by a medical expert witness in a courtroom they believe to be inaccurate or based on questionable science.

Yet the likelihood of reforming current law is low, as trial lawyers yield significant influence over our legislature. Many of California’s elected officials receive substantial campaign dollars from trial lawyers. These same officials frequently side with trial lawyers, blocking attempts at meaningful civil justice reform.

This year, AB 1505, which would have given judges clarity in handling class action lawsuits, also received a rare letter of support from Governor Schwarzenegger. The bill actually failed to get a second motion in the Assembly Judiciary Committee. Because of our do-nothing Legislature, tort reformers are often forced to utilize the initiative or referendum process to resolve loopholes encouraging lawsuit abuse. And when they do, California voters have repeatedly voiced their concern over the matter, most recently by passing Proposition 64 and defeating Proposition 79.

In fact, due to our current legal and political climate, personal injury lawyers are the only winners, often taking over one-third of plaintiffs’ awards. In class action lawsuits, plaintiffs often end up with a coupon or a small check while the lawyers representing the plaintiffs (but had no say in hiring) walk off with millions. It is no wonder the Consumer Attorneys of California announced that their members have raised millions of dollars to protect the status quo and fighting reforms.

During LAAW, and throughout the rest of the year as well, we can all stand up against lawsuit abuse. Let your voice be heard. Accept responsibility for your actions. Serve on a jury when called. Write or call your elected official and encourage them to pass meaningful reforms. Vote for candidates who are not backed by trial lawyers. In doing so, you can help ensure that justice – not greed – rules in our courts.