Editorial: Tort Reform Still Needed in W.Va.

The Intelligencer, April 26, 2006

West Virginia consistently is ranked as having one of the most unfair legal systems in the nation — one badly in need of new tort reform legislation. Opponents of reform claim that the problem is overstated, that our state really doesn’t need to put limits on abuses by trial lawyers. But here’s the problem with claims that West Virginia somehow is being singled out: Studies of whether tort reform is needed, of the basic fairness of court systems, usually do not focus on a single state. More often, they examine all 50 states in an effort to determine how they compare.

That is important because in today’s economy, states compete against each other for new businesses. Corporate executives deciding where to locate new plants and stores or whether to expand — or close — existing ones compare several aspects of doing business in specific states. Whether a state is perceived to have a fair court system is one important factor.

A study by the U.S. Chamber of Commerce’s Institute for Legal Reform recently labeled our state as having the worst legal system in the nation. About 1,400 corporate lawyers were asked to rank states according to the fairness of court systems — and West Virginia came in dead last.

Lawsuit abuse costs Americans an enormous amount of money. Companies charge more for goods and services, in order to cover the cost of lawsuits. Insurance of all types costs more. Health care costs more. In West Virginia alone, it has been estimated that the cost of lawsuit abuse is about $1.6 billion a year. That is in addition to the cost of lost opportunities for economic development — of jobs that never came to the state.

West Virginia needs new tort reform legislation, regardless of what the powerful trial lawyers’ lobby claims. Mountain State residents need to keep reminding their legislators of that, in a demand for action.