Congress Considers Impact of Lawsuit Abuse
The Senate Judiciary Committee held a hearing on the impact of lawsuit abuse on American small businesses and job creators. A few of the attendees had this to say about the multiple forms of lawsuit abuse plaguing small businesses:
“Small businesses are easy targets for frivolous lawsuits … small businesses are more likely to be sued by lawyers who threaten cookie-cutter lawsuits that demand immediate settlement,” said Elizabeth Milito, Senior Executive Counsel, National Federation of Independent Business.
“These types of lawsuits are little more than a shakedown,” said Senator Jeff Flake, Arizona.
“Given the costs of litigation, the mere threat of a lawsuit – even one unsupported by the facts – can force a small business owner to open his or her pocket book to quickly settle a claim. Often this does little to solve any alleged injuries, but conveniently, it puts money in the lawyers’ pockets,” said Senator Chuck Grassley, Iowa.
We’re glad that the committee took time to shine a light on the abuses of the civil justice system. Last year the House of Representatives passed several legal reform bills and this committee hearing could be the start of the Senate of doing the same.