Lawsuit Reform Watch

Diegnan/Gill legislation revising shareholder class action lawsuits, A-3123, is signed into law

Legislation which revises the law concerning derivative proceedings and shareholder class action lawsuits was signed into law by Governor Christie.  It was part of a package of bills sponsored by Assemblyman Patrick Diegnan (D-Middlesex) and Senator Nia Gill (D-Essex)to advance economic-growth initiatives as recommended by the Corporate and Business Law Study Commission. 

A derivative action is a suit brought by a small or minority shareholder against the corporation’s management or directors.  A-3123 establishes a minimum value of shares one needs in order to file such a suit.  It would also amend the parameters under which such a suit may be filed, allowing corporations to avoid unnecessary litigation and costs. 

Assemblyman Diegnan said this legislation would make New Jersey “even more attractive for businesses looking to set up shop or expand their presence in the state,” calling it a “common-sense update to our corporate business law to show that New Jersey is truly ‘open for business’” [read statement].

This sentiment was echoed by Assemblyman John Burzichelli (D-Gloucester) a cosponsor:

"With fierce competition on all sides from our neighboring states, we must seize any advantage that will help make New Jersey an even more attractive place in which to do business,”  he said.   

NJLRA thanks Governor Christie for signing A-3123, as well as the sponsors and cosponsors for addressing this issue. 

Christie announces Supreme Court pics - 1 Republican, 1 Independent

Governor Christie formally nominated Board of Public Utilities director Robert Hanna and Monmouth County Superior Court Judge David Bauman to the state’s highest court.  While calling it a compromise, the announcement is “not part of a deal with Senate President Steve Sweeney,” according to a Star-Ledger report. 

Hanna was appointed to the BPU by Governor Christie last year and is an unaffiliated voter.  Bauman, a registered Republican, is a Monmouth County Superior Court judge but was appointed to that role by then-Governor Jon Corzine, a Democrat. 

The announcement follows a Rutgers-Eagleton survey in which 91 percent of the state’s small business owners indicated they want the impasse between the Governor and Senate President Stephen Sweeney resolved.  There are currently two vacancies on the Supreme Court, which creates a degree of economic uncertainty for small businesses which operate in New Jersey. 

Bruce Harris nomination tomorrow, 10 a.m.

Some say it's a done deal: Bruce Harris, Mayor of Chatham and Governor Christie's Supreme Court nominee, won't be approved by the Senate Judiciary Committee tomorrow. 

The Star-Ledger reported this last week (Spoto, 5/22), and others have weighed in since.  Here is a sampling:

"Before a second of testimony has been heard or a single question has been asked, once again Democrats are disrespecting the nomination process and rushing to judgment to kill another qualified man’s nomination before he even sits in the committee room."- Kevin Roberts, spokesman for Governor Christie

"The nomination of Mr. Harris sends the wrong message, that we can only achieve diversity on the Supreme Court through lowering the bar for qualifications.  In a state with many distinguished African-American lawyers and judges, nothing could be further from the truth." – Senator Ronald Rice, leader of the NJ Black Legislative Caucus

"I don’t think it’s going to be an extremely long hearing because there’s just not a lot of experience to question him on," Senator Nick Scutari, Senate Judiciary Chair

(and of course)

"It's interesting that someone like Nick Scutari, with his educational background [found Harris unqualified]" - Governor Christie

Protecting those who help others is gaining traction in New Jersey

In recent years, concerns regarding civil liability have prompted some entities and individuals to think twice before getting involved during an emergency. 

A trio of bills, including one which is scheduled for consideration by the Assembly Health and Senior Services Committee on Thursday, seeks to change that.

 

A-2178/S-1165                          Status: on AHE agenda, 5/10/12

Many New Jerseyans rely on healthcare services offered by federally qualified health centers, nonprofit clinics, and retired-but-certified volunteer physicians who provide treatment.  The threat of liability for these individuals and entities, however, is a powerful disincentive.   Legislation sponsored by Assemblyman Herb Conaway and Senate Majority Leader Loretta Weinberg would provide civil immunity to the aforementioned acting in good faith. 

 

A-2099/S-1416                        Status: 2^nd reading the Assembly

When a West Virginia woman was unable to speak after calling 9-1-1, first responders arrived at her home but did not have consent to forcibly enter.  She was later found dead by family members.  An assembly committee approved legislation which would grant civil immunity to first responders who must forcibly enter a property in order to provide emergency assistance.  It awaits consideration by the Senate Judiciary Committee (contact Senator Scutari).    

 

 A-832/S-852                        Status: Signed into law

Automatic external defibrillators can save lives if they are used within the first few minutes of a cardiac arrest.  That is why the John Taylor Babbitt (JTB) Foundation made it its mission to fundraise and donate AEDs to places of public assembly, according to the Chatham Patch and Mendham-Chester Patch.  The problem the Foundation encountered is that for each device donated, 8 – 10 were being rejected.  The reason, according to JoAnne Babbitt, is that some organizations, including churches, youth recreation leagues, and schools, will not accept a donated AED because of the increased liability they assume.  AEDs were not covered under New Jersey’s Good Samaritan law. 

Fortunately, that changed with the stroke of a pen last week, as the Governor signed A-832/S-852 into law with overwhelming legislative support from both parties.  Senator Nicholas Scutari was the lone legislator to vote against it.  New Jersey has joined the ranks of 43 other states which grant civil immunity to those who own or utilize an automatic external defibrillator (AED) during a cardiac arrest. 

 

Let’s hope the positive momentum help A2178 and S1416 materialize as well. 

The Co$t of bullying

Many of New Jersey’s school districts have maintained that New Jersey’s bipartisan anti-bullying law, while well-intentioned, is a costly unfunded mandate.  A state panel agreed, which prompted the law’s sponsors and Governor Christie to allocate $1 million to the state’s local school districts in order to help them pay for staffing and training. 

As the Gloucester County Times pointed out in an editorial earlier this month, $1 million spread over 612 school districts isn’t likely to quell the districts’ concerns regarding the law’s cost. 

And as NJLRA points out in a letter-to-the-editor, with so many bureaucratic nuisances, litigation is all but assured. 

“It ought to be possible to have an effective anti-bullying strategy in each of our schools without breaking anyone’s bank,” the GC Times wrote.

New Jersey needs a strong anti-bullying law. But with respect to this particular law, the bleeding has only begun.

Read NJLRA’s letter here. 

Governor’s budget address

Governor Christie’s budget address will take place at 2 p.m. today.  While lawsuit reform measures are typically devoid of budgetary line-items, changes that NJLRA seeks would add much-needed business investment to the state’s economy. 

You can listen the Governor’s budget address live on the Legislature’s homepage, linked here. 

**Legislative Updates**

Assemblyman Upendra Chivukula’s “Trade Secrets Act” was passed unanimously by the General Assembly during Monday’s voting session.  Under A-921/S-2456, a company or organization would be able to sue for damages or losses that result from someone taking proprietary information (a recipe, chemical formula, invention, intellectual property, etc.) and trying to profit from it by selling it or manufacturing it.  If I take a secret recipe for a food item, sell it and make money from it, for instance, I would have to pay royalties to the company or person from whom I stole it.   A-921/S-2456 has now passed both houses and has the support of NJLRA. 

On the agenda for Thursday’s Assembly Regulated Professions Committee hearing is A-3929, which would require civil actions against certain licensed professionals (including most doctors) to be brought within two years instead of six.  This is especially important as witnesses become unavailable and records are destroyed over the extended period.  NJLRA supports this bill and looks forward to the committee’s favorable passage.  It is sponsored by Assemblyman Vincent Prieto (D-Hudson).

We’re officially encouraged by Governor Christie’s remarks at the Jersey Shore last week:

Christie on Perry: a laudable record on tort reform (Max Pizarro / Politicker NJ)

Tort reform was a key element in Texas’s economic recovery at a pace unheard of in most other states.

Patterson nomination confirmed by the Senate

Anne Patterson’s nomination to the New Jersey Supreme Court was approved late last night by the Senate, by a vote of 36-0. 

Senators Madden and Lesniak abstained, while Senator Stack was not present at the time the vote was recorded.  Senator Ciesla was absent. 

Patterson will assume the seat being vacated by Justice Roberto Rivera-Soto this fall.   

NJ Supreme Court Update

In case you missed it, Edwin Stern, who was temporarily appointed to the New Jersey Supreme Court by Chief Justice Stuart Rabner following the Justice Wallace controversy, retired last week after reaching the mandatory retirement age of 70. 

Justice Rabner has temporarily appointed Judge Dorothea O’C Wefing from the Appellate Division to serve on state’s the high court. 

Patterson nomination approved by Senate Judiciary Committee

 Nominee received bipartisan support from Senate Panel

Citing her temperament and diversity of experience, the Senate Judiciary Committee approved the nomination of Anne Patterson to the New Jersey Supreme Court.

Patterson declined to speak in-depth about ongoing matters before the Court, but said she fully appreciated the distinct roles of an activist and a judge. 

"Clearly you have the requisite skills to serve in this position," said Senator Nicholas Scutari (D-Union), who chairs the committee.

Senator Raymond Lesniak (D-Union), who previously cited concerns about the Court's lack of racial diversity, voted against Patterson’s nomination.

Patterson, 52, was originally nominated in May 2010 by Governor Chris Christie to fill the vacancy left by Justice John Wallace, whom he did not renominate for tenure. She was ultimately nominated to fill the anticipated vacancy left by Justice Roberto Rivera-Soto, who announced that he will not seek tenure.

Patterson hearing scheduled to begin today at 1 p.m.

The Senate Judiciary Committee will begin reviewing Anne Patterson’s nomination to the State Supreme Court today at 1 p.m., according to reports, in Committee Room 4. 

Senator Nicholas Scutari (D-Union), who chairs the Judiciary Committee, told the Star-Ledger that the panel would be “looking for her [Patterson’s] philosophical views and thoughts on certain “facts and circumstances.”  He plans to ask how she would feel if she were not reappointed to the bench after seven years “for the same reasons Wallace was not reappointed.”   

Anne Patterson hearing scheduled for Tuesday, May 31st at 1:00 p.m.

You can listen to the hearing live on the Legislature’s homepage.   

Supreme Court Update: Patterson will be scheduled for May 24th

Full consideration by the State Senate is expected to take place in June, according to sources.

New Jersey Supreme Court 101

The path Anne Patterson is taking to the State’s highest Court can be confusing to most non-judicial scholars.  Let’s recap:

The basics

The New Jersey Supreme Court is made up of 7 justices, compared to 9 on the U.S. Supreme Court.  Justices are initially nominated by the Governor and are referred to the Senate Judiciary Committee for consideration.  Once the State Senate bestows its blessing on the nominee, the Justice serves for an initial term of seven years. 

Following the seven year term, the Governor decides whether to nominate the Justice for tenure.  All justices must retire by age 70, if not sooner. 

Tradition calls for three justices of each party to occupy the bench, with the seventh justice to be of the Governor’s party. 

The road less traveled

Approximately one year ago this week, Governor Christie bucked tradition by choosing not to appoint Justice John Wallace for lifetime tenure – a tenure that would last two years, until he reached the mandatory retirement age.   Governors have traditionally nominated Justices for lifetime appointment despite the Justice’s party affiliation, which some argue is necessary so Justices aren’t pressured to take political conditions into their decisions on the Court. Others argue that it is the Governor’s right to base lifetime tenure on ideology as well as moral integrity.  Governor Christie then announced his intention to appoint Anne Patterson, a Republican, to the Supreme Court. 

 This is where Patterson’s path to the high court becomes unique.  In response to the bucking of tradition, Senate President Steve Sweeney declared that the Democratically-controlled legislature would not hold a hearing on Anne Patterson’s nomination until Wallace’s lifetime term would have ended in 2012.  The Governor did not budge on his decision not to nominate Wallace. 

 This left a vacant seat on the court.  In keeping with precedent, Chief Justice Stuart Rabner appointed appellate judge Edward Stern as a temporary justice.  Chief Justices have traditionally nominated the senior appellate judge to temporarily fill a vacancy on the high court when one occurs. 

 Not everyone was happy.  Justice Roberto Rivera-Soto declared in December, via a Court decision, that he would abstain from the Court’s decisions in protest because he did not believe Rabner did not have the authority to appoint a temporary justice.  Rivera-Soto later modified his stance, saying he would indeed vote on cases where Stern's vote did not affect the outcome.  Calls for Rivera-Soto’s immediate resignation grew louder from Senate Democrats and newspaper editorial boards.  A few weeks later, he informed Governor Christie that he would not seek renomination when his term ends this September. 

 Fast-forward to this week.  With the possibility of two vacancies on the Supreme Court this fall looming, Governor Christie and Senate President Sweeney announced that they reached an agreement: The Senate Judiciary Committee would consider Anne Patterson’s nomination by the end of May – to the seat about to be vacated by Justice Rivera-Soto, not Justice Wallace. 

Senate Judiciary Committee

Approval by the Senate Judiciary Committee is the next step in this process.  The Committee, headed by Senator Nick Scutari (D-Union) is made up of a total of eight Democrats.  There are five Republicans on the Committee.

Senator Ray Lesniak (D-Union) said that he intends to vote no.  Senators Scutari and Tom Kean, Jr. (R-Union) have released statements.

 LRW will keep you informed as the hearing unfolds. 

NJLRA Statement on Anne Patterson Nomination

NJLRA issued the following statement after the announcement that Governor Christie and Senate President Sweeney agreed to hold a hearing on the nomination of Anne Patterson to the seat being vacated by Justice Roberto Rivera-Soto on the State Supreme Court:

"We applaud Governor Christie and Senate President Sweeney for coming together to advance Anne Patterson's nomination and we look forward to a thoughtful hearing on her well-qualified candidacy.

“A strong and fully-constituted Supreme Court is vital to New Jersey's business community, as important issues decided by the Court directly impact New Jersey’s economic competitiveness.

NJLRA joins Innovation New Jersey

Continuing our quest to promote economic growth in New Jersey, NJLRA has joined Innovation New Jersey, a coalition of the state’s leading business and higher education organizations.

Innovation New Jersey seeks to foster the life sciences and biotechnology industries in New Jersey by uniting the state’s business and higher education communities.  NJLRA is optimistic that enacting meaningful lawsuit reform measures will encourage an innovation-based economy by making it safe for responsible pharmaceutical and biotechnology companies to operate here in New Jersey. 

“Statistics show that New Jersey’s pharmaceutical and biotechnology companies are a leading source of jobs and economic stability in New Jersey,” said Marcus Rayner, executive director of NJLRA.  “By protecting these companies from frivolous litigation, we are allowing them to invest more of their resources into doing what they do best: creating jobs and saving lives.”

Innovation New Jersey has received the support of Lieutenant Governor Kim Guadagno.  Together, the coalition hopes to achieve the following:

• Encourage increased private and public sector research and development;
• Promote the commercialization of new medicines, technologies and products to improve the quality of life globally;
• Stimulate economic growth in New Jersey;
• Retain and advance high-paying innovation-related jobs in the State;
• Increase the number of Science, Technology, Engineering and Math (STEM) related graduates from New Jersey colleges and universities.

A complete list of Innovation New Jersey’s members can be found on INJ’s new website, http://innovationnj.net/. 

The New Map

As most LRW readers already know, New Jersey’s new legislative district map has arrived.  Changes weren’t as drastic as some anticipated, and what this means for tort reform over the next decade remains to be seen.  LehighValleyLive.com has the before and after photos:   

Will trial lawyers make Caterpillar Inc. regret staying in Illinois?

Last month, we underscored Governor Christie’s pitch to attract Illinois businesses in an op-ed.  New Jersey’s “well-educated, diverse talent pool” and “innovative financing, incentive, and assistance programs” for new businesses is ideal for entrepreneurship – especially to a state which raised its corporate tax rate from 4.8 to 7 percent. 

The CEO of one business, however, recently told Illinois Governor Pat Quinn that his business would stay – but that the state’s business climate needs to change.   

Doug Oberhelman, CEO of Caterpillar Inc., which manufactures heavy equipment in the Peoria area, employs 23,000 people.  Governor Quinn reportedly acknowledged that the state’s business image is in need of an overhaul. 

Illinois ranked eighth in the region in job growth as a percentage of its population last year, according to Chicago Business.  To the chagrin of Caterpillar’s overseas representatives, personal income tax also rose, from 3 percent to 5 percent.  They expressed concern about the company’s ability to attract engineers, and reiterated that even if Governor Quinn’s call for a 30 percent reduction in businesses’ liability for workers compensation is enacted, Illinois would still have the 2^nd highest rates in the nation. Illinois businesses also want to see a cap on civil liability. 

Governor Quinn also told Oberhelman that he plans to invest in Illinois’s infrastructure and help manufacturing companies improve their ability to export.  Let’s hope that that Illinois trial lawyers don’t take it as a green light to invest in workers compensation lawsuits in the meantime. 

Read NJLRA’s op-ed in the Home News Tribune & Courier News

Lawsuit abuse a continuing drag on NJ business

By Marcus Rayner | March 29, 2011

“From a college student suing a Chinese restaurant for soup she spilled on herself (Somerset County), to a drunken motorcyclist who drives into a parked car and sues a restaurant (Ocean County), lawsuit abuse has an economic impact on businesses in every corner of the state. Every dollar spent fighting nonsense lawsuits is a dollar not spent on innovation or job creation, and it doesn't need to be this way.”

 Several hundred miles from here, Illinois business owners are learning about a place with an abundant supply of workplace talent and a high-quality lifestyle sure to make any entrepreneur envious. Weary from crippling tax hikes, a labor shortage and a shrinking consumer base, Illinois business owners can only dream about this land of milk and honey: New Jersey.

"Well-educated, diverse talent pool," reads the ad, placed by New Jersey Gov. Chris Christie. Want to start a business? "Innovative financing, incentive and assistance programs. Exceptional quality of life."

The catch? Here in New Jersey, businesses are vulnerable to lawsuit abuse. Everything the ad says about New Jersey is true. Christie's efforts to improve the business climate in New Jersey, combined with our state's existing assets make New Jersey fertile grounds for entrepreneurship. His outreach to the national business community is both constructive and sorely needed as we seek to reclaim our economic footing here in New Jersey. And business retention as well as recruitment will be critical to our economic growth over the next decade, a point that leaders in both political parties have made.

Click here to read entire piece.

Photos from NJLRA's Spring Membership Luncheon

Rich Bagger, Chief-of-Staff to Governor Christie

Marcus

Governor: NJ will double R&D tax credit

Governor Chris Christie’s budget address included several tax cut proposals, the first of which would be significant to one of New Jersey’s signature industries: pharmaceuticals. 

“We will double our State Research and Development Tax credit to encourage High Tech and Bio-Tech entrepreneurs to create their next great discovery, and the jobs that go with it, right here in New Jersey,” he said. 

New Jersey’s pharmaceutical companies have been shedding jobs over the past few years, according to the Healthcare Institute of New Jersey. Doubling New Jersey’s Research and Development Tax credit, as encouraging as it is, address our hemorrhaging of pharmaceutical jobs in part.  Imagine how much further this proposal would reach if coupled with meaningful tort reform legislation to address the assault on the industry by the trial bar. 

A-3333, which would reform New Jersey’s Consumer Fraud Act, comes to mind.  After all, why should New Jersey settle for “Hellhole” status when it has the potential to host High Tech and Bio-Tech entrepreneurship? 

The prepared text of the Governor’s budget address is available here. 

Governor’s budget address today at 2 p.m. EST

You can listen to Governor Christie’s budget address live via NJN. 

Which state is the most litigious in the nation? New Jersey, of course…

NJLRA’s former chair, Taysen Van Itallie, underscores just how serious New Jersey’s “Sue Me” image has gotten in the New Jersey Law Journal.

New Jersey had 10,579 new civil cases in 2008 – more than twice as many filed in Illinois, a state with a larger population. 

It begs the question: how exactly can we make our state more attractive to businesses without addressing the tort situation? 

“Businesses of all sizes are sensitive to a state’s lawsuit climate.  Let’s be sure we have a plan to improve ours,” writes Van Itallie. 

You can read his entire op-ed in the New Jersey Law Journal here. 

Good reading: Tort reformers have momentum in NJ

Sherman “Tiger” Joyce, president of the American Tort Reform Association (ATRA), had the following to say about New Jersey’s prospects for civil justice reform in The Metropolitan Corporate Council publication:

“Of course, the litigation industry also remains strong throughout New Jersey, home to once-and-future judicial hellholes, and ATRA expects it to again push an expansion of wrongful death liability while actively opposing consumer fraud reform. But tort reformers, backed by Governor Chris Christie, have some momentum. They support three affirmative reform bills already filed during the current legislative session. One seeks to limit appeal bonds to the total value of the monetary judgment or $50 million, whichever is less. Another would revise the individual's cause of action under the Consumer Fraud Act and make other revisions regarding applicability (see trial lawyers' opposition noted earlier). The third pertains to liability, standards of care and insurance coverage for medical malpractice actions.”

Right after swearing in, Wisconsin Governor starts tackling tort reform

As Governor Christie prepares for his State-of-the-State address, most of us in the Garden State probably didn’t take much note of the gubernatorial changing-of-hands in Wisconsin earlier this month. 

Newly minted Governor John Walker convened a Special Legislative Session to introduce his Civil Justice Reform Package.  It’s a significant part of his “Wisconsin is open for businesses” campaign.

Expert testimony, non-economic damage award limits, and product-liability are key reforms included in this proposal.  You can learn more about Governor Walker’s pro-civil justice agenda here. 

SR – 100 – Non-binding resolution encouraging Justice Rivera-Soto to resign – will be heard in Senate Judiciary this morning

SR – 100 – Non-binding resolution encouraging Justice Rivera-Soto to resign – is being heard in Senate Judiciary this morning.

The measure is sponsored by Senators Gill, Lesniak, and Scutari.  The Assembly could also impeach the embattled Justice, who has announced his decision not to seek reappointment when his term ends in the fall, and vows to abstain from court decisions until then. 

Justice Roberto Rivera-Soto Won’t Seek Reappointment

New Jersey Supreme Court Justice Roberto Rivera-Soto, who infamously declared last month that he would abstain from rulings while a temporary justice fills the vacant seat of former Justice John Wallace Jr., announced to Governor Christie that he will not pursue his own renomination.   

Justice Rivera-Soto’s term ends in September.  Senate President Steve Sweeney has vowed not to hold a confirmation hearing on Anne Patterson, whom Governor Christie nominated to succeed Justice Wallace, until 2012, when Justice Wallace would have reached New Jersey’s mandatory retirement age.  Governor Christie, for his part, has vowed not to nominate a replacement for Justice Rivera-Soto until a hearing on Patterson is held. 

It remains to be seen whether the Governor will appoint Anne Patterson to fill Justice Rivera-Soto’s anticipated vacancy, or if New Jersey will have two vacancies on its Supreme Court instead. 

Supreme Court Justices serve a 7-year term and are then eligible for tenure until the mandatory retirement age of 70.  The Star-Ledger published the following New Jersey Supreme Court timeline in today’s edition:

Legislative Calendar is up (January – March 2011)

Below are the 2011 legislative committee dates for the committees of particular interest to NJLRA (Judiciary, Health and Senior Services, & Economic Growth), along with anticipated voting session dates for the Assembly and Senate.  Legislative Digest also has the complete committee legislative calendar through March 21^st online. 

THURSDAY, JANUARY 6, 2011

 SENATE SESSION 2:00 PM Senate Chambers

Voting Session: Board list to be announced

 ASSEMBLY SESSION Assembly Chambers

Voting Session: Time and board list to be announced

 MONDAY, JANUARY 10, 2011

 SENATE SESSION 2:00 PM Senate Chambers

Voting Session: Board list to be announced

 ASSEMBLY SESSION Assembly Chambers

Voting Session: Time and board list to be announced

 TUESDAY, JANUARY 11, 2011

 JOINT SESSION

Joint Session to receive Governor's State of the State Address.

THURSDAY, JANUARY 20, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

1:00 PM: Senate Health, Human Services, and Senior Citizens scheduled to meet

 ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (A) Assembly Health and Senior Services scheduled to meet

2:00 PM: Group (B) Assembly Commerce and Economic Development scheduled to meet

 MONDAY, JANUARY 24, 2011

 ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (C) Assembly Judiciary Committee scheduled to meet

MONDAY, JANUARY 31, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

10:00 AM: Group (3) Senate Economic Growth scheduled to meet

1:00 PM: Group (4) Senate Judiciary scheduled to meet

THURSDAY, FEBRUARY 3, 2011

 ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (A) Assembly Health and Senior Services scheduled to meet

2:00 PM: Group (B) Assembly Commerce and Economic Development scheduled to meet

MONDAY, FEBRUARY 7, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

1:00 PM: Group (2) Senate Health, Human Services, and Senior Citizens scheduled to meet

 THURSDAY, FEBRUARY 10, 2011

 ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (C) Assembly Judiciary Committee scheduled to meet

 MONDAY, FEBRUARY 14, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

10:00 AM: Group (3) Senate Economic Growth scheduled to meet

1:00 PM: Group (4) Senate Judiciary scheduled to meet

 THURSDAY, FEBRUARY 17, 2011

 SENATE SESSION 2:00 PM Senate Chambers

Voting Session: Board list to be announced

 ASSEMBLY SESSION Assembly Chambers

Voting Session: Time and board list to be announced

THURSDAY, MARCH 3, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

11:00 PM: Group (2) Senate Health, Human Services, and Senior Citizens scheduled to meet

ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (A) Assembly Health and Senior Services scheduled to meet

2:00 PM: Group (B) Assembly Commerce and Economic Development scheduled to meet

MONDAY, MARCH 7, 2011

 ASSEMBLY QUORUM Assembly Chambers

10:00 AM: Group (C) Assembly Judiciary Committee scheduled to meet

 THURSDAY, MARCH 10, 2011

 SENATE QUORUM 12:00 PM Senate Chambers

10:00 AM: Group (3) Senate Economic Growth scheduled to meet

1:00 PM: Group (4) Senate Judiciary scheduled to meet

 MONDAY, MARCH 14, 2011

 SENATE SESSION Senate Chambers

10:00 AM: Committees at the call of the Senate President

 ASSEMBLY SESSION Assembly Chambers

Voting Session: Time and board list to be announced

 MONDAY, MARCH 21, 2011

SENATE SESSION 2:00 PM Senate Chambers

10:00 AM: Committees at the call of the Senate President

Voting Session: Board list to be announced

2010 in Review

            I am happy to report that the 214th NJ legislature has taken positive first steps toward reforming New Jersey's civil justice climate.  Most notably, A-2473/S-480, which extends appeal bond caps to all industries, is now on second reading in the General Assembly.  We also saw efforts to reform New Jersey's oft-abused Consumer Fraud Act with the introduction of A-3333.  Finally, the Assembly Health and Senior Services Committee held a hearing earlier this year on A-1982, which would reform New Jersey's medical malpractice environment for our state's doctors.    Collectively, these initiatives would discourage frivolous class-action litigation and enhance the integrity of scientific evidence admitted in our courts.  NJLRA would like to thank all of the bills' sponsors and the legislative leadership in both parties for their commitment to advancing pro-business legislation.  Together with our supporters, we are able to educate the legislature on the importance of these initiatives.  Senator Raymond Lesniak (D-Union), who was NJLRA's keynote speaker at our Fall Membership Luncheon, said NJLRA's proposals will be a "cornerstone" of the state's effort to reposition New Jersey's economy for long-term growth.  We enthusiastically accept Senator Lesniak's wisdom. 

            If you think you have seen more of NJLRA lately, it's because we have increased efforts to get our message out.  In 2010 we re-launched our website, where you can find any of the eight op-eds I authored over the past year.  NJLRA has also been the focus of several news stories and has written a dozen letters to-the-editor.  I encourage you to visit NJLRA's Blog and Facebook page.  You can also follow us on Twitter. 

We continue to make an effort to reach out to New Jersey's small business community.  A recent poll we conducted in conjunction with the Monmouth University Polling Institute suggests that many of the Garden State's small businesses feel vulnerable to abusive lawsuits.  We are hoping to articulate the unique needs of New Jersey's small business community as we meet with legislators across the state. 

      As we have said in the past, New Jersey cannot recover from this recession without sound policies that support job growth.  With limited resources to fund tax breaks or business incentives, legal reform offers policymakers in Trenton a revenue-neutral policy change that can send a very strong message to employers all across the nation.  States which have enacted tort reform, including Texas, now lead the country in job growth and physician retention. 

            Thank you again for your continued support.  I am confident that we will continue our path toward reforming New Jersey's civil justice laws in 2011.  Please save the date for NJLRA's first Membership Meeting of 2011, which will be held on Tuesday, March 8th at noon at the Trenton Country Club.  We will discuss our plans for 2011.  As always, please do not hesitate to contact me if I can ever be of assistance. 

Texas pursues the Holy Grail of Tort Reform

Twenty-three counties lacked an E.R. doctor.  Ten counties lacked an OB-GYN.  No, this is not a third world country: it was Texas, prior to tort reform. 

The Wall Street Journal calls the pre-reformed Texas a “holy place on the tort bar pilgrimage,” that has now morphed into a “Mecca for doctors.”  Incentives didn’t hurt, either, and Texas now leads the country in job creation.  Product liability, class-action certification, and noneconomic damage caps were reformed in 2003 and 2005.  Now, according to the Journal, Texas Governor Rick Perry wants to extend his state’s tort reform successes – British style.  It’s a thinly-veiled deterrent to filing frivolous lawsuits, which drive up business costs and drive down economic growth. 

The “loser pays” concept isn’t a new one.  The purest-form version of “loser pays” is that the losing party picks up the attorney’s tab.  The proposed caveat would impose a penalty on the losing firm which files the case, forcing trial lawyers to think twice before filing questionable claims. 

Governor Perry is also calling for “new legal channels” to expedite claims below $100,000, but details about this proposal aren’t readily available. 

It sounds like Texas might be headed in the right direction.  It begs the question: if Texas can entice doctors, why can’t New Jersey?

Labor, business leaders support civil justice reform

 

NJLRA's executive director, Marcus Rayner (2nd from left), with NJBIA Vice-President Christine Stearns, New Jersey Petroleum Council President Jim Benton, and Scott Ross, also of the New Jersey Petroleum Council.  

 

Litigation abuse drives up business costs and inhibits job growth, according to the New Jersey Society for Environmental, Economic Development (NJ SEED).  The organization, which is a broad coalition of New Jersey’s business and labor leaders, say that a vibrant life science industry is key to growing New Jersey’s economy. 

In its 2010-2011 State Issues Briefing book, “Mapping Our Way to Prosperity,” NJ SEED argues that preserving New Jersey’s status as the “medicine chest of the world” is critical, and tort reform – particularly cracking down on litigation tourism – is sorely needed by the $30 billion life science industry.  While New Jersey remains a key location for 24 of the world’s 30 largest pharmaceutical giants, weak civil justice laws have helped give momentum to Massachusetts, North Carolina, Texas, California, and Indiana, which threaten to outpace the Garden State’s industry growth. 

A decline in the life sciences industry would pose a significant strain on New Jersey’s economy.   According to the report, New Jersey’s life sciences currently do the following:

• Provide more than 211,000 jobs, directly or indirectly, throughout the state;
• Spend more than $1.5 billion annually in capital construction projects throughout New Jersey;
• Spend nearly $8 billion annually on research and development;
• Award over $4.6 million in vendor contracts to local businesses; and
• Give more than $210 million in philanthropic contributions to cultural, nonprofit, and educational organizations throughout the state.

A copy of NJ SEED’s briefing book is typically shared with the Governor, members of the Legislature, and other policy leaders in New Jersey. Let’s hope they heed the call for civil justice reform on page 46. 

 Click here to read the full report and learn more about NJ SEED.  

There’s some good stuff here,

but where is the tort reform?

Politicker NJ: Senate releases ‘toolkit for business’ bills

TRENTON – The senate Budget and Appropriations Committee approved the release of some economic stimulus bills, part of a 30-bill packet fast-tracked by the Democratic majority as a foil to Gov. Chris Christie’s municipal toolkit.

Read it here.   

Check out Marcus’s interview in the Metropolitan Corporate Counsel

Executive Director Marcus Rayner was recently interviewed by the editor of the Metropolitan Corporate Counsel, a publication dedicated to serving the interests of corporate counsel.   

NJLRA: Fostering Business Growth And Job Creation.  Published on November 2, 2010

An excerpt:

Editor: How important has the legal climate been in discouraging businesses from coming to New Jersey or from succeeding here?

Rayner: New Jersey presents many challenges for businesses and those they employ, including the high cost of living, regulations, and taxes. The civil justice system is something businesses consider when deciding where to locate and expand. Unfortunately, one of our largest industries - the life sciences and pharmaceutical industry, as well as healthcare - is the most susceptible to litigation abuse because of the large number of people it serves.

When you sell medical devices and pharmaceutical products, you are servicing people who are, in many cases, facing a disease or a physical challenge that these items are helping them to overcome, and the results can vary across populations. It is important for the large industries that are critical to New Jersey's economic success that our laws be fair. We did a study in 2008 of all the mass tort litigation facing pharmaceutical manufacturers here in the state. It found that 94 percent of the plaintiffs in these cases were from outside the state. They chose to sue under New Jersey law and before New Jersey judges rather than in their home states because the legal environment here is much more favorable to their lawsuits.

The legal climate here is much worse than that in Delaware, Pennsylvania, or New York. Businesses here face a toxic combination of our Consumer Fraud Act, court rulings on things like the statute of limitations on discovery, and, most acutely, New Jersey's weak standards for expert evidence testimony in a courtroom. When you are talking about medical liability suits and product liability suits against manufacturers of medical devices and drugs, the quality of the expertise admitted in a courtroom is critical. When the door is wide open to unqualified witnesses and unscientific testimony, you get grossly unfair results.

Click here for the full interview.

Tort reform will be a cornerstone to economic growth in New Jersey…

Senator Ray Lesniak (D-Union) spoke at NJLRA’s Fall Membership Luncheon at the Trenton Country Club.  He is the sponsor of S-480, the Appeal Bond Cap. 

Senator Lesniak expressed the Senate Economic Growth Committee’s interest in hearing tort reform proposals.  He is the Economic Growth Committee chair and is also a member of the Senate Judiciary Committee. 

 

Anne M. Patterson Nominated to N.J. Supreme Court

Gov. Chris Christie nominates lawyer Anne M. Patterson to N.J. Supreme Court

TRENTON -- Gov. Chris Christie today plans to nominate attorney Anne M. Patterson to the state Supreme Court, replace Justice John Wallace, lawmakers said.
Read NJ.com's Coverage

Will Governor Christie Reappoint Justice Wallace?

PolitickerNJ.com today has a post on this very question.  The post points out that John Wallace's term on the New Jersey Supreme Court ends on May 22, which is less than a month away.  If he is reappointed he will go on to serve another two years until 2012, when he will reach NJ's mandatory retirement age of 70 (NJ judges are appointed for seven years and upon reappointment serve until the age of 70). 

Between now and May 22nd the NJ Senate would have to hold hearings on his renomination, approve his nomination in committee and hold a vote of the full senate.

Justice Wallace has served on the NJ Supreme Court since 2003.  During the campaign last year Chris Christie indicated that he felt no obligation to reappoint justices without a good reason for doing so. 

If he does not reappoint Wallace, it would be the first time a governor has refused to reappoint a sitting justice of the NJ Supreme Court since the current 1947 constitution was adopted.

Stay tuned...

Read NJLRA's Op-Ed in today's Bergen Record!

Rayner: New Jersey’s dire need for tort reform

Tuesday, April 20, 2010

BY MARCUS RAYNER

THE RECORD

Marcus Rayner is the executive director of the New Jersey Lawsuit Reform Alliance.

AS NEW JERSEY’S unemployment rate hovers around a regionally high 10 percent, our businesses face a stagnant economy coupled with high business costs, and our state and local governments must address significant spending cuts, some may not realize that New Jersey’s economy is taking another serious hit – from frivolous litigation.

According to Forbes Magazine, New Jersey is “one of the worst places to get sued in America.”

The American Tort Reform Association has listed New Jersey in its Top Five “Judicial Hellholes” for the third consecutive year. And that’s not an overstatement: For many high-tech, bio-tech and research-based companies, one frivolous lawsuit can spell financial ruin, and send ripple effects through our struggling economy.

Consider this: Consumers do not have to be defrauded in order to file a lawsuit under New Jersey’s Consumer Fraud Act. They don’t have to ask for a refund before suing in court, either. Warnock Dodge found this out when a customer believed she was overcharged by $40 and immediately marched to court. New Jersey courts also welcome out-of-state plaintiffs.

In one such case, an Alabama resident who claimed a popular acne medication gave him inflammatory bowel syndrome received a $25 million judgment – money he will take with him to Alabama.

Go to complete Op-Ed.

U.S. Chamber of Commerce survey ranks New Jersey's legal climate

The U.S. Chamber of Commerce Institute for Legal Reform released the results of its 2010 Lawsuit Climate Survey.  It ranked New Jersey's legal climate as the 32nd worst in the United States. 

New Jersey’s road to economic recovery is going to be long and full of twists and turns.  Common-sense legal reform is one way to attract new employers and jobs to our state without spending a single taxpayer dollar.  Today, we continue to rank among states with the worst legal climate as suffering businesses across our state know all too well.  It’s time for state government to encourage economic development and job creation. 

NJLRA looks forward to working with Governor Christie, the Legislature and local officials on legal reforms that move New Jersey forward.”

The study can be found on the Institute for Legal Reform’s website at

http://www.instituteforlegalreform.com/

Tomorrow is Governor Christie’s First Budget Address

No one denies that digging the state out from under its projected $11 billion deficit is a difficult task.  A key component in New Jersey’s fiscal recovery will be its ability to attract and retain jobs – something S-480, Senator Ray Lesniak’s Appeal Bond Cap bill, helps to advance. 

Imagine being sued for something ridiculous (see “Woman Sues Morristown Hyatt for Serving Booze at a Wedding, for one example) and then losing – and then finding out that you need to post the entire award plus attorneys’ fees for the plaintiff as bond if you want to appeal.  For many mom & pop shops, having to pre-pay in order to appeal could force them out of business if they choose to pursue it. 

New Jersey does cap the amount of an appeal bond at $50 million for one industry: the tobacco companies. 

What is so special about tobacco companies that they need additional protection from financial ruin, where other New Jersey businesses don’t?

Nothing.  The ability seek recourse through the appellate process is a key protection against an unfair civil verdict.  At a time when New Jersey needs to hold onto each business and ratable it has, S-480 can help us do that by eliminating a barrier to appellate review. 

Pennsylvania echoes California and New Jersey in push for tort reform to stimulate private-sector job growth

The Pennsylvania Chamber of Business and Industry has called on Pennsylvania Governor Ed Rendell to consider the benefits of tort reform as he begins the final year of his term. 

Chamber President Floyd Warner said that curbing lawsuit abuse would “create an environment that is conducive to job and economic growth.” 

The Pennsylvania Chamber’s recommendation to pursue tort reform as a cost-neutral alternative to profound tax increases and spending cuts follows similar calls for economic stimulus in California and New Jersey.  California Governor Arnold Schwarzenegger outlined extensive proposals which would curb frivolous litigation, allow defendants to appeal class action status, and create opportunities for private sector growth.  NJLRA’s executive director Marcus Rayner asked the New Jersey Legislature to make tort reform a priority as well, noting the similarities between each state’s economic challenges.  In a letter to the editor which ran in the Home News Tribune, he said that tort reform could be a crucial job creation tool in both states.  Governor Christie made frequent references to tort reform during his campaign and stated that it would be a priority for his administration.  We’re glad to see that a similar movement is underway in Pennsylvania as well. 

NJLRA Statement on the Inauguration of Governor Christie

FOR IMMEDIATE RELEASE                              Contact:  AnnMarie McDonald

January 21, 2010                                                                    (609) 392-6557

                                                                                                    amcdonald@njlra.org

 

 

NJLRA STATEMENT ON THE INAUGURATION OF GOVERNOR CHRISTIE

 

Rayner expresses optimism, believes comprehensive bipartisan civil justice reform is possible

 

TRENTON, N.J. – Marcus Rayner, executive director of the New Jersey Lawsuit Reform Alliance, issued the following statement after attending the swearing-in of Christopher J. Christie as New Jersey’s Governor:

 

“I would like to congratulate Chris Christie as he assumes his new role as New Jersey’s governor.  As a state, we are in dire need of innovative solutions to improve our business climate and spur economic growth.  The Governor’s inclusion of Senate President Steven Sweeney and Assembly Speaker Shelia Oliver is critical to advancing cost-neutral tort reform remedies to address this situation. 

 

“New Jersey cannot recover from this recession without sound policies that support job growth.  With limited resources to fund tax breaks or business incentives, legal reform offers policymakers in Trenton a fiscal-friendly policy change that can send a very strong message to employers all across the nation:  New Jersey is once again open for business. 

 

“As we look toward the 214th Legislature with a fresh administration and legislative leadership, we are optimistic that real civil justice reform is possible.  As a candidate, Governor Christie included tort reform in his economic development plan.  He expressed interest in reforming the law to limit the ability of many out-of-state plaintiffs to sue in New Jersey's courts, discourage frivolous class-action litigation, and enhance the integrity of scientific evidence admitted in our courts. We look forward to working with the Governor’s office, Senate President Sweeney, and Speaker Oliver to achieve these reforms and build a stronger New Jersey. 

 

 

 

# # #

 

The New Jersey Lawsuit Reform Alliance (NJLRA) is a statewide, bipartisan group of businesses, individuals and organizations committed to improving the State’s civil justice system by advocating for legal reforms in the legislature and in the courts. NJLRA believes a balanced civil justice system is critical to ensuring fair and open courts, maintaining and attracting jobs and fostering economic growth in New Jersey. NJLRA is the only organization in New Jersey dedicated exclusively to civil justice reform.

California Governor’s Job Creation Proposals Would be Golden for the Garden State

As Chris Christie prepares to take office today, he might want to consider adopting some of the innovative proposals California Governor Arnold Schwarzenegger has offered to stimulate his state’s economy. 

With unemployment rates surpassing double digits in both states, attracting new businesses and retaining current businesses are critical for recovery.  Recognizing that California’s litigation laws lead to large settlements with little value to taxpayers or consumers, Gov. Schwarzenegger outlined a tort reform proposal intended to spur job growth.  Among these proposals is a cap on punitive damage awards.  In New Jersey, they would be especially welcome among our remaining businesses, especially in the pharmaceutical industry where our state once reigned supreme. 

Christie, like Schwarzenegger, will be a Republican Governor of a state with a Democratic-controlled Legislature.  Leaders of both parties have pledged their willingness to cooperate in order to help New Jersey recover from its economic crisis.  Tort reform may prove to be a significant job creation tool in New Jersey as well as California. 

California Governor’s Job Creation Proposals Could Work in the Garden State

As he enters his final year in office, California Governor Arnold Schwarzenegger has outlined an innovative strategy to spark the job creation his state’s economy so desperately needs.  And it starts with tort reform. 

“California’s current litigation laws lead to large settlements with little value to consumers, but become worth millions to lawyers at the expense of California businesses,” said Governor Schwarzenegger in a statement following his state-of-the-state address. 

In order to help California recover from its double-digit unemployment and declining business community- a situation eerily familiar in New Jersey-  the Governor announced his intention to push for a series of legislative and statutory changes.  They will include a cap on punitive damage awards- which he notes are “wildly unpredictable” among similar cases in California, changes to the rules governing class-action and product liability lawsuits, and requiring plaintiffs rather than defendants to subsidize notification to potential class members.  The last would be particularly important because current statutes hold businesspersons liable for defective products, even if the seller had no knowledge or control over the defect. 

Schwarzenegger’s model for these proposals is his state’s Medical Injury Compensation Reform Act, which was enacted in 1975.  Noneconomic damages are capped at $250,000.  It has been widely credited with keeping malpractice insurance premiums in check and keeping primary and specialty doctors in California. 

“I know that if we can recreate the teamwork we built last year and focus together on these priorities… California will emerge from these difficult times stronger and more vibrant than ever,” he said. 

Schwarzenegger is a Republican Governor who must work with a Democratic-controlled Legislature in order to advance any proposals – just like incoming Governor Chris Christie. 

Democratic and Republican leaders pledged their willingness to cooperate in order to help New Jersey rebound from its economic crisis.  Perhaps this will be a golden opportunity for Governor Christie to introduce tort reform in New Jersey. 

Tort reform will improve New Jersey's business climate

In his December 13^th Op-Ed, John Farmer Jr. correctly suggested that Governor-elect Christie utilize his office’s institutional powers to take control of the budget process as he prepares to “turn Trenton upside down.”  But with so little room to maneuver on budget issues, the new governor must also look for ways to improve the business climate immediately, and tort reform is an area where the Governor-elect should focus.

 The American Tort Reform Association (ATRA) recently cited New Jersey as a “Judicial Hellhole” due to our state’s reputation for lawsuit abuse.  Ninety-three percent of the lawsuits filed against our pharmaceutical companies in mass torts were from out-of-state litigants, whose cases would never see the light of day in their home jurisdictions.  Large employers and local governments alike are continually increasing their legal defense budgets to fight frivolous litigation, exacerbating New Jersey’s affordability problem.  We can’t let New Jersey become, as Mr. Farmer calls it, “the East Coast’s California.”  Tort reform is a revenue-neutral policy reform that will improve the business climate, paying off in the form of more jobs, more innovation, and a stronger New Jersey.  It may also offer one of the best ways for this governor and pro-business democrats in the legislature to send the message that New Jersey is open for business again.