"Loser Pays" a Winner in the Texas Legislature?
Loser pays; everyone wins.
It is the perfect sound bite in what could be the next tort reform battle in Texas: a push to require the losing parties in litigation to pay their opponents’ legal fees.
Also known as the English Rule, because of its prevalence in Britain, the loser-pays approach, advocates say, is the cure for courts choked with the costs of “junk” lawsuits. But opponents say it obstructs all litigation — without regard to merit — and keeps those with plausible legal claims from seeking justice.
In his February State of the State address, Gov. Rick Perry praised a loser-pays ...
Comments (12)
annie03
The integrity of the legal system is absolutely vital for a functioning society. In Texas there is no integrity in the legal system. For Texans involved in legal matters the only winners are lawyers. In the recent past, I was compelled to hire attorneys to help me with a family law matter. Each attorney had no problem taking my money and assuring me that they can and would represent me and my son against false charges by an aggressive ex-husband and his unscrupulous attorney and help us reclaim court ordered compensation that my ex refused to pay. What I received was two Austin attorneys who neglected and ignored my case. One lawyer made a sexual pass, swiping my palm with his finger when I met him with my son. After one hearing where my ex's attorney threw a stink bomb by hysterically slandering me and my son, I was in a state of shock and speechless. The sex seeking attorney made another pass while verbally abusing me to indicate he was dropping me and my son's legal case. The other attorney very strategically had his bombastic legal assistant insert herself between us and deflected every question I had and basically treated me like I was wasting his time. My ex's reported income of $3,400 a month (and affluent life style) was never questioned or even addressed by my 2nd lawyer. In the end, my son and I did not get the child support, and insurance reimbursement we were legally due. Two contempt of court charges for allegedly violating the terms of the divorce decree went completely unchallenged by my attorney. I submitted a grievance with the state bar (as 10,000 Texans do annually) but it was rejected by them. (But the state bar are lawyers regulating themselves.) I was truly traumatized by the betrayal and behavior of those attorneys. I sought counseling, and the general consensus of those I sought help from was "This is how law works in Texas. You got screwed. It happens all time get. Get over it and move on." Well now I have completely lost my trust in the legal system, in lawyers. So to those who might care and have the ability, fix the legal system by allowing for a way to make attorney's accountable for their work.
Michael B Openshaw
It is the frivolous declaration that is key here; this will NOT prevent legitimate suits. However, when I was called to jury duty recently, it turned out to be a case where someone was suing because the commercial property they bought had lost value over the last few years. There wasn't a prospective juror there who wasn't thinking the same thing- "Why on earth are we here; we've ALL lost property value in the last few years."
Literally, the plaintive lawyer should not get a NICKEL from ANYONE for letting that case ever get to court. But he knows he'll get paid anyway. 'Loser Pays' will make many cases like this disappear, with the savings by everyone (except for the lawyers who live by wasting people's and the courts time with such silliness).
Tony Owens
A No-Evidence Motion for Summary Judgment gets filed by either party to force the other party to prove that enough evidence exists for a lawsuit to continue. It's a simple process that is used both by Plaintiffs and Defendants to get rid of frivolous claims or defenses. There is no frivolous lawsuit problem in Texas.
This loser pay bill is crafted by the big $$ donors to Perry and is designed to get rid of "successful" litigation as there is not a frivolous claim that will withstand a No-Evidence Motion for Summary Judgment. Wonder why some home builders want to limit lawsuits in Texas? Is it because they build crappy houses or build neighborhoods on old waste dumps or burial grounds?
Remember, when the state "reformed" medical malpractice lawsuits, they promised that rural areas were going to get lots of new doctors. Where are they? Remember, the cost of medicine was going to drop if we cap damage verdicts against hospitals and doctors. Where is the savings? This was another ruse by the insurance lobby who own the Governor's Mansion...but didn't insure it for fire.
It's time we reform the Supreme Court of Texas, an entity who takes their campaign contributions from the very same law firms who bring cases before them. The statistics do not lie, the Supreme Court of Texas has ruled in favor of insurance companies over 80% of the time while taking $$ from the same businesses who they claim to have impartiality over. Really???
Michael B Openshaw
Ahh, the plaintiff lawyers speak! Mr. No, reference the case I witnessed. Evidence of property values having dropped- like gravity causing things to fall to earth- is evidence, but does not make the lawsuit any less frivolous. Every sin you list is- amazingly- against various entities referred to as 'deep pockets'. Problem is, those 'deep pockets' get filled up by the far shallower pockets of something called 'customers', who end up paying all the costs of lawsuits, including the frivolous ones meant to roll the dice to line the pockets (some of them quite deep) of LAWYERS. And between lining the deep pockets of companies, who produce products, and lawyers, who redistribute wealth through court edict, I prefer to support the productive component.
Matthew Wright via Texas Tribune on Facebook
Despite the financial crisis demanding the attention of our part-time legislature, they keep coming up with these ideas . Not just ideas that do no good - - - but ideas that actually HURT people. Why?
Lou Ann Anderson via Texas Tribune on Facebook
Experience being the target of a frivolous lawsuit and this becomes an appealing idea.
Mike C. Miller via Texas Tribune on Facebook
Ridiculous!! If the Plaintiff looses, he pays the Defendants costs. But if the Defendant looses, he DOESN'T pay the Plaintiff's costs??!! What happened to the common sense of "What's good for the goose is good for the gander"?
I've been a Plaintiff's lawyer for 26 years and have lost four cases in that time. I've won close to one hundred. Why not have Defendants who loose pay my costs??
brian reynolds
Let me get this straight: A plaintiff has to pay the defendant's attorney's fees if a court or jury determines the plaintiff's claims are frivolous. But, what happens if a defendant drags out a case for years and years pursuing one frivolous defense after another to grind down the plaintiff, who eventually will run out of money and give up? Nothing. We're concerned about frivolous claims, but groundless defenses are just fine and, unfortunately, are strategically effective against those who cannot afford the fight. Also, check out the part of the bill that assesses the defendant's fees against the plaintiff's attorney if he or she has a financial stake in the case, which he or she probably will as a percent of recovery because the plaintiff is injured and cannot pay hourly fees. Is the defendant's CEO or CFO going to be personally assessed the plaintiff's attorney's fees under this bill? Not a chance, even though they likely have a personal financial stake in the defendant and the outcome in the case. This is mean-spirited, one-sided legislation, that makes access to justice out of reach for those who need it most.
James Wilkins
The problem is this latest tort reform package comes after two decades of previous tort reform legislation. When you lose your job because of wrongful termination, your life savings due to the next Worldcom or Enron or your family to a drunk driver, you unfortunately will realize how slanted Texas law has become as a result of all this "tort reform." So, this latest idea is to hit the plaintiff and even the plaintiff's lawyer with attorney's fess for a "frivolous" case, but not the defendant or the defense lawyer? Here is the effect of all this: (1) Finding representation will be harder for the little guy; (2) Defendants will be able to threaten those who dare to assert legal rights against them with financial ruin as the defense lawyers run up enormous fees at $500/hour, (3) cases that should settle will not or will for a fraction of their true value as a result of the distortion created by this one-sided legislation and (4) unlawful companies will not be held accountable.
David Wilton
As long as it applies in criminal cases, all in.
James Wilkins
This bill is ridiculous and continues the erosion of individual rights. It is funny how the Republicans continue to preach their support of individual freedom -- but, then offer bills like this which limit each person's liberty. We are slowly becoming a country of corporate rights trumping all. Wake up Texas. The big bad wolf is not in lawyers clothing -- it is dressed up in corporate interests.
Adolfo Pesquera
Texas has a very well documented history of tort reform. Texas is ranked 1st in the nation in tort reform and Republicans have made a lot of grand statements about how this has translated into providing the state the best business climate in the USA. The idea that Texas has a problem with frivolous lawsuits is, at this point, preposterous. We do not need 'loser pays.' This is a British system that belongs on the other side of the ocean. It has already made its way to Florida and we have learned it is very unfair. There are valid reasons why the party with the meritorious claim may still lose a case - such as impediments in the discovery phase, inability to get a witness, judges barring vital evidence, attorney error or incompetence. Gov. Perry, who found it so easy to discredit the honorable Sen. Hutchison for being too much of a 'Washington' insider is now trying to sell us an English model. Hypocrite? For more info: http://is.gd/cCLMLf