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"The Pennsylvania Chamber of Business and Industry is a constructive organization that has developed many sound proposals that seek to make the Commonwealth's economic future brighter." -- State Rep. Sandra Major, House Minority Caucus Chairman
PA Chamber urges enactment of commonsense legal reform

Monday, October 22, 2007

HARRISBURG, PA - The Pennsylvania Chamber of Business and Industry today joined with former Pennsylvania Governor and U.S. Attorney General Richard Thornburgh, state lawmakers and other business groups at a Capitol news conference to urge the enactment of commonsense legal reforms that will restore balance and fairness to the system.

"Government policies in Pennsylvania have, for decades, encouraged the growth of a runaway legal system," said Kirk Liddell, president and CEO of Lancaster-based Irex Corporation and chairman of the PA Chamber Board of Directors. "The high legal costs paid by Pennsylvania employers stunt the Commonwealth’s economic growth and job creation."

Liddell said the state’s litigation environment directly impacts important business decisions, such as where to locate or expand, who to hire, and what products to introduce or improve.

"Companies decide not to hire people or not to introduce new products because of fear of litigation," he said. "Companies spend an inordinate amount of time and money on lawyers and defensive measures, which limits investments; increases the prices of products and services; and restricts, delays or prevents other, more productive activities."

Liddell said enacting the legal reform package will send a clear message across the Commonwealth and the nation that Pennsylvania is serious about attracting and retaining high-quality businesses and the family-sustaining jobs that they provide.

The call for legal reform includes the re-enactment of the Fair Share Act, which would ensure that the liability of a defendant in a civil case is more in line with actual degree of fault. Under the current legal doctrine of joint and several liability, trial lawyers in civil litigation cases often target companies with perceived deep pockets (ability to pay). As a result - a defendant that may only be 1 percent at fault could be held liable for 100 percent of the damages.

Enacted with bipartisan support in 2002, the Fair Share Act was thrown out by the courts due to a procedural error in its passage. Last session, the legislature was able to get legislation to Gov. Ed Rendell that would have reinstated the Fair Share Act. However, the governor vetoed the bill, despite a pledge made as a candidate to sign the measure.

Liddell said joint and several liability reform is a priority for the business community.

Other legal reforms include protection for innocent sellers and a statute of repose for product liability actions.

"The Pennsylvania Chamber is grateful for the leadership of former governor Richard Thornburgh at the national level, and state Representative Mike Turzai and his colleagues for putting legal reform on the General Assembly’s front burner," Liddell said. "These initiatives represent critical steps toward improving Pennsylvania’s job climate and will ensure that all Pennsylvanians have a balanced, commonsense legal system working for them."

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with its membership representing nearly 50 percent of the private workforce.

Copyright © 2006 Pennsylvania Chamber of Business and Industry