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Press Release
February 9, 2010

Contact: Hannah Martone
Press Officer
Phone: (646) 839-3313
hmartone@manhattan-institute.org


 

New Report: How Trial Lawyers, Inc. Buys Political Influence, Blocks

Tort Reform, and Costs Americans Billions

Over the last few decades, the plaintiffs’ bar has grown into an organized industry (which the Manhattan Institute calls Trial Lawyers, Inc.), and the trial-lawyer lobby has emerged as a major political force that combines large-scale political giving with K-Street lobbying sophistication.

Although the trial bar’s political clout is well known, a new report released by the Manhattan Institute, Trial Lawyers, Inc.: K Street—A Report on the Litigation Lobby, 2010, the latest edition in its Trial Lawyers, Inc. series, shows that the extent of its influence is greater than even many seasoned political observers realize.

  • What is the extent of the plaintiffs’ bar political giving to the Democratic Congressional leadership?

    - Lawyers have donated $1.05 billion to federal candidates since 1990, including $33 million in contributions from the trial lawyers’ political action committee, the American Association for Justice
    - Two of the top five private contributors to the Democratic Senatorial Campaign Committee in the last campaign were plaintiffs’ law firms
    - Plaintiffs’ law firms are four of the top seven contributors to Senate Majority Leader Harry Reid (D-Nev.) and the top two (and seven of the top twenty) contributors to Senate Majority Whip Dick Durbin (D-Ill.)


  • How has the litigation industry parlayed its Congressional clout into an aggressive legislative agenda?

    - The first bill signed into law by President Obama made it easier to file discrimination suits by limiting statutes of limitations
    - Numerous bills in Congress would eliminate arbitration contracts that encourage resolu­tion of disputes that are too expensive to take to trial—including a defense-contractor amendment that was the first legislative success for Senator Al Franken (D-Minn.)
    - Senator Arlen Specter (D-Penn.), whose son Shanin is a major Philadelphia plaintiffs’ lawyer, has introduced a bill giving the plaintiffs’ bar a $1.6 billion tax cut


  • How is Trial Lawyers, Inc. aggressively pursuing a political agenda at the state level?

    - Lawyers have donated $725 million to state political candidates over the last decade
    - The litigation lobby is pushing state legislation that would authorize new kinds of lawsuits, weaken limitations on collectible damages, and give private lawyers authority to sue on behalf of the state
    - Concentrated political giving in states with elected judiciaries has led to an escalating spending race that harms public confidence in judicial impartiality


  • What is the effect of lawsuit abuse on American competitiveness?

    - The annual direct cost of American tort litigation exceeds $250 billion, almost two percent of GDP
    - Indirect costs, like defensive medicine and reduced research and development, likely exceed direct costs
    - The share of the U.S. economy devoted to tort litigation is two to three times higher than that in other developed nations, like Germany, Britain, and Japan—yet Americans are not safer as a result

Read the full report: http://www.triallawyersinc.com/kstreet/kstr01.html

To schedule an interview with the author, Jim Copland, please contact Hannah Martone at (646) 839-3313 or hmartone@manhattan-institute.org.


The Manhattan Institute, a 501(c)(3), is a think tank whose mission is to develop and disseminate new ideas that foster greater economic choice and individual responsibility.

 

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