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Tort reform lags
Business and Economics Op-Ed
By: Lawrence J. McQuillan, Ph.D
6.8.2006
Miami Herald, June 8, 2006
Letter to the Editor
In his June 5 Business piece," Tort reform must prove itself to the people," Charles Hartz says that tort reformers have achieved ''significant victories'' in Florida. Yes, there have been a few, but the Sunshine State shouldn't rest on its laurels. Florida ranked a dismal 42nd in our just-released study, the _U.S. Tort Liability Index_, which compares the tort systems of the 50 states.
Over-the-top lawsuits pose a huge risk to anyone doing business in Florida. This is highlighted by the fact that Florida ranked dead last in relative monetary tort losses. Why? Florida is not competitive with reforms adopted by other states in class actions, venue, jury service, attorney fees in nonmedical-malpractice cases and noneconomic damage caps in nonmedical-malpractice cases.
Our report identified Florida as a ''sinner,'' one of the states poised to fall even further in future rankings because of its high losses and few comprehensive reforms compared to other states, especially Texas. This is not merely a theoretical problem. The U.S. tort system costs $260 billion a year -- averaging $886 for every American. Because Florida ranks well below average, Floridians shoulder an even heavier burden.
LAWRENCE J. MCQUILLAN Director, Business and Economic Studies Pacific Research Institute Sacramento, Calif.
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