Big Three Step Up Fight Against Frivolous Lawsuits
The Detroit automakers are taking a more aggressive role in the effort to reform the U.S. legal system and limit frivolous lawsuits.
The Detroit automakers are taking a more aggressive role in the effort to reform the U.S. legal system and limit frivolous lawsuits.
The automakers, the U.S. Chamber of Commerce, the National Association of Manufacturers and other business groups have been prompted and encouraged by the recent election to step up in their efforts. A bill expected to be proposed next year would make it harder to bring class-action lawsuits, reported The Detroit News.
"There is a strong momentum coming out of the election in favor of legal reforms," said Lisa Rickard, president of the U.S. Chamber of Commerce Institute for Legal Reform. "It´s extremely expensive. It´s distracting. It draws resources away from more constructive, productive uses."
Lawsuits have cost the automakers millions of dollars each year. They are now becoming more vocal about the need for reform. William Clay Ford Jr., Ford Motor Co. CEO, said last month that legal reform was one of the company´s top legislative priorities.
"America is experiencing a dramatic rise in the number of lawsuits and multimillion dollar settlements," Ford said.
"Only 20 cents from each dollar spent actually goes to the winners of the lawsuits," Ford added. "This is raising the cost of doing business and raising questions about the fairness of our legal system."
Auto dealers and manufacturers won a victory in California in November. Voters passed a ballot initiative, Proposition 64, which doesn´t let a consumer file a lawsuit for unfair business practices unless he or she has suffered injury or lost money or property.
But automakers and dealers can expect strong opposition from consumer groups and trial lawyers. They say that these reforms would give businesses an unfair advantage and make it difficult for consumers to collect damages even when they have suffered injury or loss.
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