Weekly Legislative Update
February 27, 2009

First legislative cut-offbrings some good news,still leaves several bad bills

Wednesday brought the first major cut-off date where legislation must be out of its policy committee.  After starting with a list of 22 bills that significantly increase liability, the LRC and its allies have successfully whittled the list down to nearly half, leaving 12 bad liability bills.  Included in the pile of “dead” bills are the False Claims Act (SB 5144 and SB 5224), the inflated medical records bills (SB 5573 and HB 1737) and the House version of the asbestos liability bill (HB 2054). 

Unfortunately, we’re still left with several bills of great concern to supporters of a balanced and fair liability system.  For starters, the Senate version of the asbestos liability bill (SB 5964) is still working its way through the process. This measure holds product manufacturers liable retroactively for asbestos-containing products they did not make or specify should be used with their product.  It’s interesting to note that very day the Senate Labor and Commerce & Consumer Protection Committee passed this bill, a California—yes, California—Court of Appeals REJECTED this liability argument in Taylor v. City and County of San Francisco and, instead, ruled the same as Washington’s Supreme Court.

The legislature is still considering expanding the state’s Consumer Protection Act (CPA).  HB 1683 and SB 5531 increase the damages limit under the CPA and include provisions to make it easier for any individual to bring a CPA lawsuit despite the fact the public has not been impacted.  And as if that isn’t enough, of the 40 bills introduced in the legislature which create a new, private right of action under the CPA over half (22, to be exact) are still alive.  This mirrors a nationwide trend on the part of trial lawyers to expand state Consumer Protection Acts in order to bring more cases, more easily, with more damages allowed. 

The next major cut-off for these bills and the other liability bills is March 12, when all legislation must be out of its house of origin.  For a complete review of the status of liability bills, see the LRC’s bill tracker. 

Speaking of asbestos … Lawsuit accuses lawyers, doctors of creating phony asbestos cases

The Forbes (2/26, Fisher) reports, "Asbestos defendants have complained for years that they are the victims of a multibillion-dollar shakedown" and "now a Mississippi lawsuit makes that claim explicit: A Georgia company that paid out some $95 million in asbestos settlements has accused doctors, testing companies and as-yet unnamed plaintiff lawyers of participating in a racketeering scheme to gin up phony cases."