Frivolous Lawsuits in Texas
From the Office of Texas Governor Rick Perry:
Gov. Rick Perry ceremonially signed House Bill 274, which brings important lawsuit reforms to Texas courts, including implementing a loser pays system for frivolous lawsuits in the state. The governor designated this issue as an emergency item for this legislative session. Gov. Perry was joined by Rep. Brandon Creighton and Sen. Joan Huffman for the signing ceremony.
"HB 274 provides defendants and judges with a variety of tools that will cut down on frivolous claims in Texas," Gov. Perry said. "This important legislation will help make Texas that much more attractive to employers seeking to expand or relocate from countries all over the world by allowing them to spend less time in court and more time creating jobs."
It is very possible to “create jobs” without gutting the legal protection of the average citizen, but apparently our friends in Texas don’t see it that way. “Loser pays” is not about “frivolous lawsuits.” It’s about lawsuits in general.
For instance, let’s say you are a public school teacher and get severely injured due to the actions of an enormous corporation. Would you like to run the risk of paying the law firm that this corporation hires to defend itself in the event that you end up losing your case? Aside from the fact that there is no such thing as a “slam dunk” lawsuit, corporations often drag cases out in order to make lowball settlement offers more appealing. Do you have any idea how much that would cost? Probably a lot more than it would cost to make you whole after your injury.
It is already difficult enough for people in Texas to access the courts in the first place. Tort reform laws for medical malpractice have essentially made it impossible for low income individuals to enter the courtroom. With strict damage limits on non-economic damages, malpractice lawyers (most of whom operate on a contingency fee basis) can’t afford to bring these cases to court. After court costs, hiring expert witnesses, and the general labor of bringing a case to trial, most attorneys would end up losing money on the case. And a cap on non-economic damages might not bother you if you happen to play first base for the Washington Nationals, but if you are like the vast majority of the rest of us, non-economic damages are a crucial part of an injury case. Plus, if you happen to get injured due to the actions of emergency room personnel, the only way they can be found guilty in Texas is if they admit that they meant to hurt you. And who in their right minds would do that?
So now that doctors (and their insurance companies) are squared away and protected in ways that don’t extend to their patients, Governor Perry has decided to make sure that the rest of the folks who need the least protection get the most of it. The code word is “small businesses,” which is actually just short hand for “large businesses.” Basically, it doesn’t matter how much damage they do. There are now a series of safety nets in Texas that allows businesses to do whatever they want, regardless of the consequences. I mean, what are you going to do if you get hurt? Sue them? Are you sure you want to do that? What if you lose? And if you win? You might be able to maybe keep your house with the winnings. But it will be back to business as usual for them.
It’s worth mentioning that in the press release, there is plenty of talk of judges and defendants, and how this new legislation will make everything easier for them. But there is not one mention of the rights of plaintiffs, injury victims or victims of medical malpractice. Mentioning injury victims wouldn’t be very popular with this bill.
Greenberg and Bederman is a personal injury law firm located in Silver Spring, Maryland. We are currently offering legal assistance to victims of medical malpractice in Maryland, Virginia and Washington, D.C. If you or a loved one has been a victim of a surgical error, wrong diagnosis, prescription error or any other form of medical malpractice, contact Greenberg & Bederman for a free consultation.