Letter to the Editor:

Trial lawyer Ralph Cook, in his June 12 letter titled "Misleading claim," criticized the findings of our tort study "Jackpot Justice" by attacking another study we relied on for portions of the data.

Cook stated that a Tillinghast-Towers Perrin report contains "a long list of costs not at all associated with the civil justice system." We disagree.

The report includes costs such as fender-benders and insurance CEO salaries, as Cook mentioned, because it is a comprehensive accounting of direct tort costs. Fender-benders are torts, and the tort-related portion of CEO salaries is an overhead cost of making tort-damage payments.

The Tillinghast study is the industry standard for measuring direct U.S. tort costs and is the most frequently cited source for this information. The data come primarily from A.M. Best, which compiles composite financial data for the U.S. insurance industry and are the gold standard because they are subject to audit and reviewed by state insurance regulatory agencies.

Cook misstated the truth by saying that Insurance Journal said the Tillinghast study has "nothing to do with the costs of litigation, courts or the legal system" and is "wrong," "misleading" and "highly unreliable."

These statements actually came from opponents of the Tillinghast study quoted by Insurance Journal. These were not the opinions of the publication itself.

Cook was right to say that tort case filings have decreased in the 1990s, but ignored the increase of costs which negatively impact businesses and consumers alike.

Lawrence J. McQuillan,

Sacramento, Calif.

Dr. Lawrence J. McQuillan is director of Business and Economic Studies of the Pacific Research Institute for Public Policy.