The American Tort Reform Association (ATRA) recently applauded the Manhattan Institute’s Center for Legal Policy for exposing how plaintiffs’ lawyers are driving businesses and jobs from California.

In a report released on April 14 by the institute, titled "Trial Lawyers, Inc.: California," it portrayed the state of California's lawsuit industry as a "corporation" that is run by lawyers who are exploiting the civil justice system at the expense of both citizens and businesses in the state. Sherman Joyce, the President of ATRA, said "California citizens should be outraged to learn that they are losing jobs and affordable housing on account of a handful of greedy plaintiffs’ lawyers who have exploited the state’s civil justice system."

The report highlighted how a deluge of "construction defect" litigation has resulted in limited, affordable housing. Additionally, close to 40% of California companies have made plans to relocate jobs out of state, while close to 50% have policies halting employment growth because of the labor lawsuit epidemic.

For three years in a row, courts in California have made the list of "Judicial Hellholes®." The abuses in California courts have contributed to the state's economic hardship that is clearly spelled out in Trial Lawyers, Inc.: California.

Judicial Hellholes® are state trial court jurisdictions where, in ATRA's belief, impartial justice is unavailable. Lawyers specializing in personal injury seek out these jurisdictions and then file cases in them because they know that, should they win, they will receive a large reward, a favorable precedent, or both.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.