The California Citizens Against Lawsuit Abuse (CALA) has mobilized this week to draw attention to the negative effects of unwarranted and meritless litigation.
As part of its effort to draw attention to Lawsuit Abuse Awareness Week -- which started Monday, Oct. 6 and runs through Friday, Oct. 10 -- Maryann Maloney, executive director of the Orange County Citizens Against Lawsuit Abuse, penned a piece for the Fox & Hounds daily, a business and political web site.
"Lawsuit Abuse Awareness Week is the ideal time to illustrate one tax most people are unaware they even pay -- the lawsuit tax," Maloney wrote. "This 'tax' is excised in numerous ways, such as higher prices for goods and services, higher insurance premiums, and higher medical and pharmaceutical bills."
She noted a recent survey of nearly 1,000 people that found nearly 83 percent believe the number of liability lawsuits in California is increasing. More than 98 percent said that lawsuits filed against businesses have had a negative impact on business growth and prosperity, according to the survey by California Citizens Against Lawsuit Abuse and members of the National Federation of Independent Business (NFIB).
Maloney also mentions the staggering monetary effect of lawsuits. The United States paid $247 billion in tort costs, according to Tillinghast Towers Perrin's 2007 annual report on U.S. tort cost trends. That comes out to $825 for every man, woman and child, or $3,300 for a family of four.