California Supreme Court Decision will Help Contingency Fee Lawyers at the Expense of the State

Statement of ILR President Lisa A. Rickard on Monday’s decision by the Supreme Court of California in County of Santa Clara v. Superior Court (Atlantic Richfield Co) allowing state municipalities to hire outside contingency fee lawyers:

“The California Supreme Court’s decision to allow government entities to partner with private lawyers in contingency fee lawsuits will not only result in more litigation, but will further burden the state’s ability to create jobs and emerge from its worst economic situation since the Great Depression.

“While today’s decision provides more uncertainty for America’s job creators, it gives clarity to the lawsuit industry and plaintiffs’ lawyers looking to expand into a new area of litigation..."

Read More: CA Supreme Court Decision will Help Contingency Fee Lawyers

U.S. Chamber Applauds Congressional Inquiry Into Treasury’s Consideration of $1.6 Billion Trial Lawyer Tax Break

Statement of Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, on the letter sent July 23rd by Senator Chuck Grassley and Congressman Dave Camp to Treasury Secretary Timothy Geithner regarding Treasury’s consideration of a $1.6 billion tax break for plaintiffs’ lawyers:

“Senator Grassley and Congressman Camp are right to question Treasury’s possible enactment of a special interest tax break for plaintiffs’ lawyers without the approval of Congress.

“For the past three years, the trial lawyer lobby has been pushing Congress to enact a $1.6 billion tax cut for plaintiffs’ lawyers that would increase abusive litigation and add to the deficit. With support in Congress woefully lacking, the trial bar is trying to circumvent our elected representatives and get Treasury to enact their special interest tax break by fiat.

“At a time of high unemployment and record deficits, Washington should be working to put Americans back to work, not increase the deficit while subsidizing frivolous lawsuits. I applaud Senator Grassley and Congressman Camp for questioning this brazen end run around our democratic process.”

Read More: U.S. Chamber Applauds Congressional Inquiry

Read More: Letter to Sec. Geithner from Sen. Grassley and Rep. Camp (PDF)

Plaintiffs’ Lawyer Tax Break is a Lawsuit Subsidy Paid for by the American Taxpayer

Statement of Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, on the efforts of plaintiffs’ lawyers to get the Department of Treasury to allow for a $1.6 billion tax break for costs associated with contingency fee lawsuits:

“Plaintiffs’ lawyers have been pushing Congress for the last two years to give them a $1.6 billion tax break for their contingency fee lawsuits. This amounts to a subsidy for more lawsuits at the expense of the American taxpayer. Now they’re trying to circumvent Congress and go right to the Treasury Department to allow them to have this tax break.

“This is simply a taxpayer-funded loan to plaintiffs’ lawyers that will be a further drag on job creation and economic growth, all while increasing the federal deficit. America needs more jobs, not more lawsuits.”

 

Watch Now: Kelly's Court Discusses Plaintiffs' Lawyer Tax Break