Midland Reporter-Telegram , May 24, 2006

The juke box favorite of the 1940s, "Accentuate the Positive," might well be considered as a new theme song for the Lone Star State.

Penned by Johnny Mercer and made popular by Bing Crosby, the tune emphasizes the positive and latching on to the affirmative. It seems a fitting song to be sung now because of the recent ranking Texas received - 1st in tort liability reform.

The US Tort Liability Index: 2006 Report, just released by the Pacific Research Institute (PRI) in San Francisco, measured the health of the nation's civil justice system. The study noted that tort reforms undertaken in Texas have significantly strengthened the state's economy and have improved the quality of life for all its citizens. Criteria included in the study involved nearly 40 variables ranging from monetary tort losses to rules and reform. The Report, which analyzed all 50 states, was the first ever produced.

PRI officials indicated that although Texas now ranks best in the nation in tort reform, had the study been conducted before the tort reforms implemented a few years ago, the state would have just been in the middle of the pack (26th).

As is universally recognized, a fair and equitable system of civil justice is essential to the proper functioning of a market economy. Such a system permits legitimate disputes to be resolved, establishes appropriate compensation systems, encourages proper conduct in business matters, and allows businesses and investors to evaluate risk and return in a predictable environment. It also contributes to productivity and economic prosperity by ensuring a framework conducive to the efficient use of economic assets and cost-effective production.

Until the reforms in Texas undertaken in 1995 and especially those implemented in 2003 and 2005, the state's civil justice system was a significant detriment to economic progress.

Between 1980 and 1995, judicial costs increased more than twice the Texas rate of growth in output and over 30% faster than corresponding measures for the nation as a whole.

Within a year of the Texas Legislature's passage of House Bill 4 in 2003, which helped reform the state's civil justice system, and the subsequent approval of the constitutional amendment (Proposition 12) establishing a ceiling on non-economic damages, Texas had made substantial advancements in making health care accessible to more people and creating new jobs.

Gradually, as the frequency of malpractice claims dropped, liability insurers reduced their charges. Ten new carriers even sought entry into the Texas market in order to write physician policies. Liability savings experienced by physicians and hospitals enabled them to expand access and improve services.

In addition to medical malpractice and punitive damage laws, recent legislative decisions have produced reforms in numerous other areas including such matters as asbestos and silica litigation, "forum shopping," and various class-action suits.

In 2005, Texas was awarded the Governor's Cup in recognition of being the state with the largest number of job creation announcements and also selected as the state with the best business climate. The fact that Texas was dropped from the American Medical Association's list of states in medical liability crisis is no coincidence.

Thus, Texas has become a model for other states in their tort reform implementation endeavors. The US Senate is now considering the issues of medical justice reform and access to health care. Many lawmakers are looking at Texas for guidance in these matters.

With due diligence and continued efforts to improve our state's overall civil judicial system, the melody and words of the Johnny Mercer hit could certainly become a Lone Star State favorite.