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Arkansas Supreme Court sides with farmers, strikes down punitive damages cap










Update on America Invents Act of 2011

In a rare showing of bipartisanship, the Senate passed the America Invents Act last week. Since I last reported on the Act (when it had a different name), I sent a letter to my congressional team containing the analysis I shared here several weeks ago. Before the Senate’s vote last week, I was honored to receive a call from Senator Boozeman’s office requesting my input on several provisions in the Act. His office told me only two patent attorneys in the state wrote to the Senator to comment on the Act, and his staff appreciated the help in understanding the sometimes-esoteric patent laws.

Conservative former Senator opposes tort reform

Fred Thompson, former U.S. Senator from Tennessee, opposes changes to the civil justice system in Tennessee sought by tort reform advocates. His reasoning?

As someone who practiced in the courts of Tennessee for almost 30 years, I believe that a Tennessee jury of average citizens, after hearing all the facts, under the guidance of an impartial judge and limited by the constraints of our appellate courts, is more likely to render justice in a particular case than would one-size-fits-all rules imposed by government, either state or federal.

The civil justice system has checks and balances designed to ensure that each party entering the system receives fair treatment. Each side gets a lawyer to passionately advocate for its position. A judge mediates the case so that the parties have access to evidence they need to present their case. The judge also decides whether a party's claim has enough merit to try before a jury.

After months or years of legal process, the claims of a lawsuit are narrowed down enough to try to a jury. A jury views evidence that is carefully vetted for authenticity, reliability, and relevance. The jury passes judgment on the credibility of evidence and testimony of the witnesses. Only then does the jury decide how wins and how much should be awarded.

The beauty of our civil justice system is that it permits a jury of our peers to decide disputes between citizens based upon the individual facts of each case. Tort reform seeks to change that fundamental right, and even conservatives like Fred Thompson recognize that tort reform is a bad idea for justice.

BP showed us how liability caps work – poorly

This morning, the Arkansas Democrat Gazette reported on the Arkansas Congressional delegation's involvement in hearings about the Deepwater Horizon oil spill. Congress passed a law in 1990 capping oil companies' liability for oil spills at $75 million. Now, current leadership is considering a repeal of that law. Congressman Boozman supports repeal because he doesn't "want the taxpayer to be stuck with the liability."

This discussion illustrates two things. First, liability caps remove an incentive for companies ensure that they place public safety first. The Deepwater Horizon spill will wind up costing far, far more than $75 million. But, with liability for the spill limited to a fraction of the profits generated by the well and by BP generally, BP had no incentive to place the safety and reliability of its well over profits.

Second, when liability caps are in place, the taxpayer winds up footing the bill for harm caused by the wrongdoer. Whether its BP avoiding liability for environmental damage or a careless motorist avoiding liability for hurting another driver, someone else winds up footing the bill. All too often it is the government, whether it's the Environmental Protection Agency cleaning up oil or Medicare paying for medical treatment that should rightfully be charged to a negligent motorist.

It's strange to me that Congressman Boozman recognizes that we don't want to shift private liability onto the taxpayers, yet he still supports tort reform. Tort reform, at its core, is about shifting financial responsibility for harm caused by a private party to someone else, which all too often is the government payroll.