Texas Takes the Lead in Promoting Prosperity
The state of Texas is planning to introduce a UK-style “loser pays” rule that will require plaintiffs to pay the legal costs of those they target where they lose their cases. This will discourage lawsuits for damages which blight the US legal system (a restraint strongly opposed by the vested interests of the powerful trial lawyers’ lobby, a major source of donations to Democrat politicians).
Americans now spend more on tort litigation than they do on new cars.
Over the past decade Texas has become easily the most successful state in job creation. One reason is the restrictions it has placed on litigation.
Since it overhauled medical malpractice laws, ending the practice of venue shopping for friendly judges and putting a $250,000 cap on non-economic
damages such as pain and suffering, Texas has become a Mecca for medical specialists, who elsewhere face high premiums for insurance against malpractice suits.
Since 2003 the number of doctors applying for permission to practise in the state has increased four times faster than the population.
This is an interesting example of how legal and regulatory reform has be a major stimulus to economic growth.
CopyRight – OnTarget January 2011 by Martin Spring