Battle over legal reform goes on offense; good thing, because it can't keep waiting
With the constantly worsening economy, the time to reform our legal system is now. We need government policies that will create the conditions necessary for businesses to thrive and create jobs, not pile on more taxation, regulation, and litigation.
We are encouraged that Gov. Arnold Schwarzenegger now recognizes that legal reform is absolutely critical to helping businesses prosper so that they can create jobs.
The governor has included legal reform as a top priority in his California Jobs Initiative. He has called for creating or retaining 100,000 jobs. In so doing, Schwarzenegger has joined the forces calling for more jobs, not more lawsuits. His plans also call for eliminating abusive lawsuits that punish California's small businesses, saying, "Unfair and frivolous suits impact where companies locate or expand."
There have been several bills introduced in the legislature in response to the governor's initiative.
If reforms could be seriously considered, this would be great news for small businesses across the state, as they are the largest employers of Californians. State law is currently heavily biased in favor of plaintiffs, and more importantly their attorneys. Legal reforms would bring much needed fairness and predictability to the legal system, the net result being job creation and an improved economy. However, a number of these reforms have already died in committee and the rest are likely to meet the same fate as our legislators continue to pander to the deep-pocked trial bar rather than their constituents.
Other states like Texas and Mississippi have worked hard to adopt legal reforms and today are reaping the economic benefits. In 2008, more than half of all new U.S. jobs created were in Texas. Meanwhile, our state is trying to stop the red ink and exodus of taxpayers and job producers.
You would think that California legislators would take notice. For too many years now, California has been at or near the bottom of every study that ranks the legal and business climates of all 50 states and our economy is suffering as a result. In recent years, America's business community ranked California "the worst place in which to do business."
Sacramento politicians seem to believe that people will continue to gamble with their livelihoods in California no matter how unfriendly a business climate they create. That gamble is clearly not paying off as California continues to slip into an economic abyss.
California Citizens Against Lawsuit Abuse is pleased to see the governor going on the offense with overdue legal reform. Even if none of these bills ultimately make their way to his desk, it's refreshing to know our voices are finally being heard. I encourage you to join me in making our concerns known by making it clear to our elected officials that we want legal reform now, as it is a key to our state's economic recovery.
California's financial stability is dependent on these legislators putting the interest of the constituents ahead of these self-interested special interests.
Keith Wolaridge lives in Bakersfield and is a banker for Union Bank. He serves on various boards and committees, among them Kern County Leadership Council and California Citizens Against Lawsuit Abuse.
