| For Immediate Release |
| January 4, 2001 |
How many times have you shook your head in disbelief when you've read a newspaper story about millions of dollars in damages being awarded to a woman for spilling hot coffee on herself at McDonald's or similar stories? Or what about the State of Minnesota being sued because someone claims the red light on the drivers license photo equipment caused them eye damage?
Recently, the Minnesota House of Representatives passed a bill designed to reduce the number of frivolous lawsuits in our state. It doesn't take a Fortune 500 CEO to explain how the excessive amounts of litigation and lawsuits drive up the costs of everything from dishwashers and cars to health insurance and accounting services. Small and large businesses alike find frivolous lawsuits to be a huge cost that hampers growth.
The issue of "joint and several" liability is a complex one, but what it means to consumers and taxpayers is higher costs. "Joint and several" liability provides that each party that bears some responsibility for an injury may be held responsible for all of the injured parties' damages. This is often called the "deep pockets rule" as it allows trial lawyers to sue as many defendants as possible in hope that they are found partially to blame and can thus be held liable for 100 percent of awarded damages.
Certainly, if an individual, business or agency of government is found responsible for damages against someone, they should pay their fair share. That is the right of every citizen. But Minnesota law allows that a defendant who is just 16 percent at fault can be made to pay 100 percent of the damages - a lower threshold than every other state in the Midwest and 38 other states in the country. It seems to lack common sense to expect someone who is less than one fifth at fault to pay 100 percent of the damages awarded.
One thing most people don't know about the "joint and several" liability law is the burden it puts on state and local governments in addition to businesses. The State of Minnesota as well as cities, counties and school districts across the state are often named as defendants in lawsuits for no other reason than their ability to pay. The Attorney General's office has stacks of pending claims from people that could ultimately cost taxpayers a great deal.
The bill passed by the Republican-led House in March puts Minnesota's "joint and several" liability law closer in line with our neighboring states - all which have made changes to their laws in recent years to improve fairness, discourage frivolous lawsuits, and improve their economic competitiveness.
Minnesota's ability to retain and attract jobs in today's competitive world relies on a reasonable cost of doing business and an affordable cost of living for workers. That is why reform of the "joint and several" liability law is so important.
House Republicans are committed to putting fairness and economic competitiveness ahead of frivolous lawsuits that drive up the cost of doing business, buying goods and services and paying taxes. Governor Ventura has also stated his support for this prudent and necessary public policy reform.
Unfortunately, the trial lawyers' stranglehold on the DFL Party and the Minnesota Senate has prevented this reform from going forward in past sessions and very possibly could prevent it again this year. But rest assured, Republicans with the support of the Governor will continue pushing for this reform to protect Minnesota taxpayers, businesspeople and our business climate.
Now is the time to call DFL senators and simply say "give fairness a chance" and urge them to support this reform that will help Minnesota keep and grow jobs.