Tort Reform Essay

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Tort Reform Tort reform is very controversial issue. From the plaintiff’s perspective, tort reforms seems to take liability away from places such as insurance companies and hospitals which could at times leave the plaintiff without defense. From the defendant’s perspective, tort reform provides a defense from extremely large punitive damage awards. There seems to be no median between the two. Neither side will be satisfied. With the help of affiliations such as the American Tort Reform Association and Citizens Against Lawsuit Abuse, many businesses and corporations are working to change the current tort system to stop these high cash awards. Various organizations working in favor of tort reform include the…show more content…
It consists of people living in communities joining together to try to stop the “high cost and injustice in our legal system” (American Tort Reform Association). Located throughout the United States, the CALA is fighting to eliminate the high payouts for circumstantial cases (American Tort Reform Association). The ATRA and CALA are trying to stop minor cases from receiving enormous sums of money which will dampen the economy. The subject matter of these cases varies to some length including but not limited to medical and car insurance. In a case against Rich Mountain Nursing and Rehabilitation Center of Mena, jurors found the defendant, Mena, guilty of malpractice in the death of Margaretha Sauer, a ninety-three year old woman. The non-economic punitive damages cash award for the suffering and pain of the Sauer family to be paid by Mena was seventy-eight million dollars. Punitive damages is one of the issues that the ATRA is trying to combat. If nursing homes continue to have pay large sums for punitive damages, they will not be able to survive. The premium average liability offered by nursing homes has increased from $820,000 in 1999 to $11.6 million in 2001. With the liability premiums continuing to rise, the prospects of profits continue to dwindle. They will have no chance at retaining a profit and thus will have to close. It will also mean that doctors will charge more for their services, which leads to fewer health insurances carrying

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