Another reason to move to Texas!

The title says it all: Texas requires losing parties of frivolous lawsuits to pay their own costs.  This has been needed for a long time.  It will eliminate waste, reduce stress for innocent people and give even more incentive for people to create businesses and jobs in Texas.  This is the kind of approach that led Texas to add more jobs over 5 years than the other 49 states combined.

From the Wall Street Journal:

This week, Texas Gov. Rick Perry signed a law that will help free Lone Star State businesses from the threat of frivolous lawsuits by enacting “loser-pays” tort reform. Prior to the legislation, litigants faced a no-lose situation, while defendants stood to lose everything—even for the most outrageous, bizarre and wrongful accusations.

Even when defendants won, the legal fees associated with protecting themselves could add up to tens of thousands of dollars. As a result, many pre-emptively settled out of court, as the settlement payment would be less than the legal fees. Under Texas’s new legislation, however, litigants will be forced to pay for the defendant’s attorney fees if the case is determined groundless. This will compel would-be litigants to consider the practicality of their complaint before taking legal action, and it will protect defendants from the dire financial impact of frivolous cases.

The Texas legislation should serve as a national model, especially as we recover from the Great Recession. America has the most expensive civil-justice system in the world, costing $255 billion in 2008, or nearly 2% of gross domestic product, according to a 2009 study by the firm Towers Perrin (now Towers Watson). That’s more than twice as much as any other industrialized nation as a percent of the GDP.

From the commentary by the Wintery Knight:

One of the reasons why we are in an economic mess is because we have not reined in the excesses of the trial lawyers. And the Democrats will never be able to rein them in because they are the core of the Democrat party, along with labor unions, teacher unions, word-smithing academics, criminals, welfare recipients and Hollywood celebrities. The sheltered, non-productive segments of society, who have never had to run a business or make payroll.

He forgot to mention the abortion and LGBTQ lobbies, but otherwise it was very accurate.

4 thoughts on “Another reason to move to Texas!”

  1. Lord willing, we WILL be moving to Texas in the next 6 weeks! Amen and amen.

    I posted on Gov. Rick Perry’s call for prayer as well. Texas gets the thumbs up at 2 different blogs today. 🙂

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  2. People being made to be responsible for their actions – what an idea!! lol! That’s awesome!! Hopefully other states will follow suit! That would definitely change the course of this country in many ways!

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  3. There are two kinds of people, those who want to live in Texas and can and those who want to and can’t. I, I am sorry to say, and the latter. 🙂

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  4. Very sensible law, IMHO.

    Even if people don’t settle, it can still cost $10,000 to get rid of something frivolous – such as being sued by mistake. This gives people a very real incentive to sue carefully.

    The other advantage is that it’s not a pure fee-shifting statute (i.e. loser pays, not matter what). In those situations, you could lose 5-4 at the Supreme Court and get handed a gigantic legal bill for litigating a very debatable case.

    This makes more sense, IMHO.

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