"The risk-takers who create California’s jobs are fully prepared to face the uncertainties of the marketplace, and even the hazards of fire, flood, or earthquake. But they can’t survive the ruinous cost of lawsuit abuse."

Governor Pete Wilson
1996 State of the State Address

"California’s civil litigation system is an anchor weighing down businesses as California attempts to compete in a global economy. In 1992, 850,000 new lawsuits were filed in California courts.

"Increased liability exposure, litigation-encouraging rules for resolving damage disputes and exorbitant punitive damage awards are adding costs to California’s goods and services and making the state less competitive. This imposes a “tort tax” nationwide estimated at $300 billion.

"Surveys by the California Chamber, California Business Roundtable and Citizens Against Lawsuit Abuse have shown that the civil liability system is one of the key concerns for the California business climate."

California Chamber of Commerce

"The [California] Chamber’s top priority for 1998 is limiting lawsuit abuse."

Amy McCombs, Chair, Board of Directors
Allan Zaremberg, President

"Assuming responsibility for one's actions in a world of unlimited opportunities is paramount. Unfortunately, many people will seek a scapegoat for their faulty decisions or accidental occurrences. Imagine a system in which vast sums of money are basically given to such people. This system is the civil lawsuit circuit at its worst, subject to the abuses of irresponsibility and greed."

Darcy Richardson, Rancho Bernardo High School
1st Place, CALA High School Essay / Scholarship Contest (2000)

"Lawsuit abuse is when an individual or group puts aside their ethical and moral reasoning, ignores the larger effect that their actions have on society, and pursues an issue that only results in the advancement of their own goals or financial gain."

Christina Kytasty, Poway High School
2nd Place, CALA High School Essay / Scholarship Contest (2000)

"The civil liability system is hurting us, especially the Californians, socially and economically with citizens living in fear of being sued, companies slowing innovation and production to deter lawsuits, and the criminals walking away rich. A national movement for reform is essential." 

"The very individual responsibility that is undermined by abusive lawsuits must be metamorphosized into a general responsibility to unclog, amend, and revalue the civil liability system. It is time to create a standard for what is worth litigating and let all potential cases face that standard before being deliberated."

Melody Morsaint, Oceanside High School
3rd Place, CALA High School Essay / Scholarship Contest (2000)

"Not only does filing abusive lawsuits waste taxpayer dollars that could be better spent elsewhere, but it also causes the price of consumer goods and services, including health care and insurance to be inflated. Fighting lawsuits is very expensive and often can cost a person his/her life's saving . . . defendants often have to file out of court settlements with plaintiffs in order to not be ruined financially. People need to learn to take personal responsibility for their own actions instead of using lawsuits to shield their blame. If the court system in the United States ever wants to be taken seriously and respected, then lawsuit abuse needs to end."

Jacqueline Silva, Castle Park High School
3rd Place, CALA High School Essay / Scholarship Contest (2000) 

 

WHAT THE LAWSUIT TAX REALLY MEANS FOR CONSUMERS 

According to a study by Tillinghast-Towers Perrin, each U.S. citizen pays $845 annually in his/her share of lawsuit costs.  That adds up to $3,380 for a family of four.  Here’s just a few ways that money might be put to better use… 

^Ø       5 months of daycare for a 4-5 year old child = $3,010¹

Ø      1320 gallons of gas at $2.56/gallon = $3,379.20² 

Ø      805 gallons of Safeway Lucerne 2% Reduced Fat Milk = $3,372.95³ 

Ø      868 dozen of Egglands Best Grade AA Large Eggs = $3,376.52³ 

Ø      294 packages of Huggies Baby Shape Disposable Diapers 40 Count = $3,378.06³ 

Ø      1058 loaves of Safeway SELECT Enriched White Country Bread = $3,375.02³     

Ø      677 bags of Assorted Apples and Oranges. Pre-Packed - 5 Lb=$3,378.23³     

Ø      423 bags of Safeway Medium Grain Calrose Rice - 20 Lb = $3,379.77³ 

Ø      1690 cups of Starbucks coffee=$3,380⁴ 

Ø      60 meals for a family of four at Applebees® restaurant = $3,360⁵    

Ø      67 months of cellular telephone service = $3,346.65⁶ 

Ø      76 trips to the movie theater for a family of four, including popcorn and snacks = $3,344⁷ 

Ø      7-Day stay at Disney Land Resort for a family of four, including meals = $3,138.94⁸ 

Ø      14 car payments = $3,350.76⁹ 

Ø      $3,380 = A really nice Holiday Season for the family 

¹Based on an average cost of $602 per month for fulltime childcare at a licensed childcare facility. 

²Based on the average price listed on www.gaspricewatch.com

³Based on prices found at www.safeway.com

⁴Based on a tall cup of regular coffee from Starbucks®

⁵Based on an average bill of $56 for a family of four at Applebees®

⁶Based on a cellular service plan of $49.95 a month

⁷Based on a family of four, including popcorn and snacks, at Regal Cinemas approximately $44

⁸Based on a family of four staying at Disneyland Hotel, park tickets and 15 pre-paid Disney meals

⁹Based on a Dodge Neon SXT 4D Sedan at Carmax.com priced at $9995 with $0 and 7%APR