Legal Reforms Will Improve Economic Environment

Improving Wisconsin's legal climate is a top priority for the Republican legislature.  For too long, our state has been a haven for frivolous lawsuits.  In February, we made a huge step forward in reforming our legal system with the passage of a law that caps punitive damages for personal injuries and improves the use of experts in the courtroom, among other provisions.  I've authored some common-sense proposals that will continue to improve Wisconsin's legal climate by providing litigation certainty.  Governor Walker has included the bills in his second Special Session jobs package which will be voted on soon. 

Frivolous lawsuits hurt our economy.  It takes money that could be directed into the economy and instead pumps it into the court system.  In fact, direct tort costs account for almost two percent of GDP in the United States - the highest in the world.  Fewer than 45 cents of every dollar recovered in civil actions winds up in the pockets of the victims - with the rest ending up in the pockets of lawyers and their "overhead costs." 

We need legal reform.  A 2010 Tort Liability Index labeled Wisconsin "a sucker" when it comes to the tort rules we have on the books.  Wisconsin was ranked 45th best in product liability losses.  This means that trial attorneys will use states like Wisconsin to pad their pockets because other states have stronger tort rules.  This also means that employers will avoid our state for the same reason.  There's no doubt about it, our current laws encourage frivolous lawsuits and hurt job growth. 

The legal reforms included in the Special Session jobs package will allow employers to invest in their business or hire new employees instead of protecting themselves from lawsuits.  We’ve made significant progress since the beginning of session, but there's still a lot to accomplish.  These proposals continue our effort to improve Wisconsin’s legal climate. Job creators looking to establish or expand their businesses will find a more attractive environment in Wisconsin with these needed changes.

For more information on the legal-reform bills I've authored, visit my website. 

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