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E-mail Print Plum torts: A rich indulgence
Business and Economics Op-Ed
By: Lawrence J. McQuillan, Ph.D
9.27.2006

The Seattle Times, Sept. 27, 2006


Letter to the Editor

Although it was fun to read about Kelly Coakley's lawsuit against Starbucks ["Starbucks sued over pulled offer," Business & Technology, Sept. 14], the case highlights a major problem with our nation's tort system: Too often, people who are just looking for some money join class actions and collectively seek damages far in excess of any actual injuries. The lawyer suing on behalf of Starbucks customers expects up to a million New Yorkers to join the suit.

States can put an end to this practice by adopting tougher class-action certification rules and placing limits on the amount a jury can award for hard-to-quantify damages like "pain and suffering" or "mental distress."

Abuse of tort law doesn't just hurt businesses like Starbucks. It affects every one of us. In fact, the President's Council of Economic Advisers estimated that, in 2000, the excessive costs of the tort system nationwide were $136 billion — equivalent to a 3-percent tax on our wages.

— Lawrence J. McQuillan
co-author, U.S. Tort Liability Index
Pacific Research Institute
San Francisco, Calif.

 

 

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