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Civil Justice Reform Executive Order Signing 10/23/91 [OA 6038]
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Civil Justice Reform Executive Order Signing 10/23/91 [OA 6038]
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Civil Justice Reform Executive Order Signing 10/23/91 [OA 6038]
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4
1
Bob- Tony made minor word changes and I think
he has staffed it, 6:30 pm Thurs. MK
Grant/Simon
A: LAWYERS
Draft two
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
VP speech
A little more than two months ago, Vice President Quayle
to ABA outlined the Administration's agenda for civil justice reform
8-13-91 before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
Comp. Report Council
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
P.
in direct + indirect costs
year, and in 1989 alone, more than 18 million civil suits were
ABA speech
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
Council competiveness
working group of the Vice President's Competitiveness Council has
Report
recommended concrete steps that we can take -- starting today --
on
to get our legal system back on track. These fifty
civil
recommendations include:
justice
Reform
Changes in the rules of discovery, to end unnecessary and
8/91
burdensome requests;
p.7-10
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
comp.Corneil
B.A. members around the country. Other proposals require
peport
action by the Supreme Court and federal committees. Today's
P.10
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
see
foreclosures. We got a letter the other day from an architect in
letter
California named Charles Yaeger. He wrote, "I have many friends
in
file
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
see
letter
"As a business owner myself, the liability insurance is getting
in
file
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy. " One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
Compail
percent lower than the rates paid by their counterparts in the
p.3
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
TIME
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
wash.
( (For example, I don't know if you've seen Hulk Hogan's new
Times
movie /// but at one point he asks the bad guys if they're going
10-5-91 to beat him up. // You know what they replied? "Hey, this is
P.
B6 the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes ---
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Grant/Simon
A:LAWYERS / Draft four
October 22, 1991
REMARKS: CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
11:45 A.M.
Welcome, everyone. I'm grateful to Vice President Quayle
for his hard work on this issue; to our nominee for Attorney
General, Bill Barr; and to the Solicitor General, Ken Starr, who
headed the working group that produced this fine report.
A little more than two months ago, the Vice President
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House ///
and some of the best lawyer jokes I've heard in years. ))
But we're not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a legal system spun out of control. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, the
Competitiveness Council, chaired by the Vice President, has
recommended extensive and concrete steps that we can take --
starting today -- to get our legal system back on track. These
fifty recommendations include changes in the rules of discovery;
adoption, in certain areas, of the "loser pays" rule;
encouragement of alternative dispute resolution; caps on punitive
damages; and changes in the rules on expert evidence to end the
use of "junk science" on the witness stand.
2
I've named only a few of our many recommendations. Some of
these proposals require federal legislation, which we will
transmit to the Congress very soon. Other proposals require
action by the Supreme Court. Today's Executive Order will apply
most of these recommendations, where possible, to the federal
government. And I'm asking every agency head to do everything
possible to fully and effectively implement the Executive Order.
With all that said, let me get to the heart of the matter.
Civil justice reform is vital to America's well-being. I'm
talking about access to health care and quality of life --
parents are having a tough time finding an obstetrician in some
states because many obstetricians found it wasn't worth it to
practice anymore. I'm talking about beneficial new products that
never reach the marketplace at all because of liability concerns.
I'm talking about jobs. We got a letter the other day from
an architect in California named Charles Yaeger. He wrote, "I
have many friends who are going out of business because of fear
of lawsuits."
And I'm talking about inflation and consumer prices. The
owner of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to
us: "As a business owner myself, the liability insurance is
getting out of hand. The manufacturers could significantly lower
their prices both wholesale and retail, which would stimulate our
economy. "
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
3
senseless lawsuits. Maybe it's because we have most of the
world's lawyers here in America. Maybe it's because the pop
culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. II ))
You see the problem everywhere. From the hinderance of new
medicines to local bans of firework displays on the Fourth of
July, the fear of outlandish litigation has begun to strangle the
American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. That's why I feel so strongly about
these recommendations by the Vice President's Competitiveness
Council. This is not a partisan issue -- it's a matter of
overcoming the vested interests and changing the status quo to
ensure a better and more prosperous life for all Americans.
The Federal Government is the largest single consumer of
legal resources. As the client, I'm asking you, the government's
top lawyers, to help us change the status quo. The Executive
Order will hold you to higher standards than private
practitioners. But it will also give us the opportunity to the
lead the country -- by example -- toward civil justice reform.
Today we're taking the first step. And now it's my pleasure
to ask Bill Barr and Ken Starr to join us up front as I sign this
Executive Order.
# # #
Simon
Grant/Simon
A: LAWYERS
Draft two
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
in direct + indirect costs.
year and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.)) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
ATRA
American Tort Reform Association
1212 New York Avenue, N.W.
Suite 515
Washington, D.C. 20005
(202) 682-1163
THE LIABILITY CRISIS AND ITS IMPACT ON
THE AMERICAN CONSUMER
The liability crisis is having a severe impact on the American consumer. The cost of
increased liability exposure is a major component in the price of goods and services. This has
direct consequences for American competitiveness and innovation which ultimately affects
national employment and the costs of goods and services for consumers. Many products have
simply become unavailable at any price. For service-oriented businesses such as day care
centers, restaurants, and bus companies, the decreased availabilty of liability protection and
increased threat of being sued is as serious a problem as the cost. As more and more of
these businesses are forced to close some communities are finding themselves without access
to important services.
FACTS
1.
American manufacturers and sellers pay product liability insurance rates that are 20 to
100 times higher than their foreign competitors, placing American firms at a competitive
disadvantage in both foreign and domestic markets.
(Product Liability and Tort Reform; National Legal Center for
the Public Interest, April 21, 1982)
2.
Under product liability law today in the majority of states, American manufacturers are
potentially responsible for harm caused by their older products for as long as they
remain in use. Foreign manufacturers, on the other hand, do not have these older
products in this country and, therefore, their product liability insurance costs often are
substantially less.
(James H. Mack, Public Affairs Director, National Machine Tool
Builders Association; June 10, 1982)
3.
The American machine tool industry is about three quarters what it was a decade ago.
Overseas competitors have filled many of the gaps. One of the impediments in competing
against foreign companies is product liability costs.
(Testimony, John Corcio, CEO of Mack Trucks, March 24, 1987)
4.
Uvex Winter Optical in Rhode Island has stopped manufacturing and distributing
motorcycle and ski racing helmets because of liability costs.
(Testimony, John Corcio, CEO of Mack Trucks, March 24,1987)
5. Toy manufacturer F. J. Strauss Co., in New Jersey, has had to lay off employees to
help absorb the costs of insurance rate increases. Typical of other toy
manufacturers, F. J. Strauss Company anticipates it will have to shut its doors and
lay off 50 additional employees if there is no relief for the company.
(Testimony, John Corcio, CEO of Mack Trucks, March 24, 1987)
6. There are no longer any domestic producers of trampolines, inflatable balls or ice
hockey equipment. Liability costs have been a major factor in driving these
industries out of America.
(Sporting Goods Manufacturers Association)
7. 1300 truckers went out of business in 1985 due to liability-related insurance
requirements.
(May, 1986 GAO Report)
8. Cessna Aircraft Co. laid off 900 employees in 1986 and halted production of its piston
aircraft when liability premiums became the largest component of their product's cost.
Employment is down 66% from 1980 in the general aviation industry.
(Ed Stimpson, President, General Aviation Manufacturers
Association, August 14, 1986)
9. The high cost of product liability insurance, the expense of defending lawsuits, the
investment in risk prevention and minimization have caused 13.5 percent of machinery
companies studied to drop product lines and 11.5 percent to decide against development
of a particular new product.
(Randolf J. Stayin, partner in Taft, Stettinius & Hollister
Testimony, March 24, 1987)
10. Product liability costs for American sporting goods manufacturers in 1982 was 4.2
competitors. percent of total sales compared to 0.5 percent of sales for their Japanese
(Randolf J. Stayin, partner in Taft, Stettinius & Hollister,
Testimony, March 24, 1987)
11. insurance. $5 of the cost of a $25 wooden stepladder goes toward the manufacturer's liability
("Sky High Damage Suits;" U.S. News and World Report, January
22, 1986)
12. In the last ten years, the number of companies that manufacture football helmets
dropped from 18 to 2. Recently, one of the last two companies announced its plan to
sell because of the liability exposure and cost. In 1985, insurance and legal costs
were higher than all production costs combined.
(Sporting Goods Manufacturers Association)
13. Only two companies currently manufacture the diphtheria-tetanus-pertussis (DTP)
vaccine. Recent lawsuits seeking more than $1 billion in claims have led one DTP
company to almost triple the cost of its vaccine in order to self-insure, and both
companies have considered closing their doors.
(Washington Post, May 21, 1986)
14. A major designer and producer of amateur-built aircraft kits reports that 30% of the
price of a new kit-built biplane pays for liability insurance.
("The Impact of the Insurance Crisis on the Recreation
Community;" by the American Recreation Coalition)
15. Almost 63 percent of consulting engineers say liability concerns inhibit their
specification of new products.
(Engineer Perspective 1986, Research and Management
Foundation of the American Consulting Engineers Council,
December 1986)
16. Many companies are finding it increasingly difficult to obtain the services of
qualified persons to serve on their boards of directors because of the increasing
threat of liability and soaring insurance costs. The number of claims against
directors 84%. has gone up 257% since 1974, and the average total cost per claim has risen
(New York Times, March 7, 1986, p. D1)
17. The outside directors of the Zonic Corporation in Cincinnati all resigned when the
profits. liability premiums rose from $25,000 to $250,000, a figure higher than the company's
(State Policy Reports; November, 1986)
18. A 200% raise in insurance costs, over the past year, has caused many towns to do
without 4th of July fireworks displays.
(Constance Mitchell, N Y Times, June 6, 1986)
19. Due to increasing premiums and lawsuits blaming injuries on football helmets, $25 of
the $100 retail price of a helmet is the cost of liability insurance.
(Stephen Wermiel, Wall Street Journal, May 16, 1986)
20. Mitchell Karlan, the President of the Los Angeles County Medical Association, claims
that, "Almost one-third of all the tests that are done by doctors are done because of
fear of liability." For Medicare alone, this accounts for, "$20 billion a year in
wasted money," according to Karlan.
(Stephen Wermiel, Wall Street Journal, May 16, 1986)
21. Half of all ice skating rinks report they cannot obtain liability coverage and may be
forced to close.
(Tort Policy Working Group, An Update on the Liability Crisis,
March 1987)
22. The Amateur Softball Association had its premiums increase by over 2,000% in 1986.
While the Soccer Association for Youth Organization experienced an increase of 500% in
its liability insurance cost.
(Tort Policy Working Group, An Update on the Liability Crisis
March 1987)
23. A Massachusetts company, whose metal folding crib met the goverment safety standards
refused to place the product on the market because of the difficulty of obtaining
liability insurance.
(Tort Policy Working Group, An Update on the Liability Crisis
March 1987)
24. The Merchant's Corporation of America failed to market a new infant car seat, which
they claimed would be the highest quality unit available, because of the potential
liability risks.
(Tort Policy Working Group, An Update on the Liability Crisis
March 1987)
25. Puritan - Benett, the sole domestic manufacturer of anesthesia gas machines, stopped
producing the machines because of its inability to obtain insurance.
(Tort Policy Working Group, An Update on the Liability Crisis
March 1987)
26. The Journal of the American Medical Association reports that 12% of obstetricians have
stopped delivering babies and 38% of surgeons are avoiding high-risk cases because of
liability concerns.
(Tort Policy Working Group, An Update on the liability Crisis
March 1987)
27. The Boy Scouts of America's liability insurance costs jumped from $2 million in 1984
to $10 million in 1986. This increase has caused the Boy Scouts to charge each unit a
$20.00 fee, the first in the Scout's 76 year history.
(Journal of Commerce, August 19, 1986)
28. Yellow Cab taxies in Philadelphia were forced to raise their price by 25 cents a ride
after being forced to consider self-insurance.
(Journal of Commerce, August 19, 1986)
29. The rising liability costs for day care centers, which have jumped by 500 to 2000% in
down. the last two years while coverage has decreased, has caused many centers to close
(The Dallas Morning News, September 14, 1986)
30. In New York, liability insurance cost increases of 500% for ski area operators may
cause many small operators to go out of business.
(Journal of Commerce, November 17, 1986)
31. The Columbia Parks and Recreation Association are unable to open to the public, a
slide they spent $400,000 to build, because they were unable to obtain liability
insurance for the slide.
(Lisa Leff, Washington Post, August 30, 1986)
32. Some small European companies have been forced to forego the American market, due to
high product liability premiums.
(Jacques Neher, Washington Post, December 28, 1986)
33. In Miami, one hospital closed its emergency room and at least seven others have cut
back their emergency services because doctors, protesting high malpractice insurance
costs, will not be available.
(Washington Post, January 2, 1986)
34. Kazmaier Associates Inc. has put its Bike football helmet subsidiary up for sale
rather than pay the multimillion dollar liability insurance costs. Richard W.
Kazmaier, Jr., head of Kazmaier Associates, Inc., claims that anywhere between 45% to
85% of sales are used to pay insurance costs. After Bike there is only one other
manufacturer of football helmets.
(Mark Potts, Washington Post, March 10, 1987)
35. One hundred community and private pools in the Washington area had to remove their
high diving boards to save money on extremely high insurance rates or to avoid losing
their coverage all together.
(Mary Jordan, Washington Post, March 25, 1986)
36. Due to rising liability insurance costs, swimming and diving clubs in the Washington
area may not be able to field teams this summer.
(Chris Spolar, Washington Post, May 1, 1987)
37. Will County, Illinois, was forced to close its forest preserves until it could get a
new liability policy on them, and Blue Lake, California had to shut its skating rink,
parks and tennis courts.
(Time, March 24, 1986)
38. Merrill Dow dropped a remedy for morning sickness that was approved by the FDA and had
been on the market since 1956, the company also created a $120 million settlement fund
rather than face 700 cases claiming that the product caused birth defects.
(Wall Street Journal, February 4, 1986)
39. Professional liability raised the cost of physicians services by around 15% in 1984.
(The Cost of Medical Professional Liability, Roger A.
Reynolds, John A. Rizzo and Martin Gonzalez)
40. Physicians are using less than optimal doses of chemotherapy for cancer patients
sued. because of the belief that more severe side effects will inevitably cause them to be
(Director National Cancer Institute; Washington Post, March
25, 1986.)
41. A survey of Tennessee physicians revealed that 95% of the physicians ordered more
tests, more diagnostic procedures, and more frequent hospitalizations in response to
the threat of malpractice litigation.
(Bell, Legislative Intrusions into the Common Law of Medical
Malpractice: Thoughts About the Deterrent Effect of Tort
Liability, 1984)
42. Increases in professional liablity premium expenses are responsible for 25% of the
increse in the cost of physician services since 1982.
(Socioecomomic Characteristics of Medical Practice 1986, AMA
Center for Health Policy, December 1986)
43. An American College of Obstetricians and Gynecologists study, released June 8,1987,
estimates that 30% of family practitioners in rural communities will stop delevering
babies because of high malpractice insurance premiums.
(Liability Week June 15, 1987)
44. In 1980 Beech Aircraft Corporation had seven manufacturing plants. Now they have only
three and operations in these plants have been reduced. Their main plant in Wichita,
Kansas employed 7,600 people in 1980, the current employment is only 4,900. Liability
costs have been a major cause in the decline of the industry. In Wichita, Kansas over
25,000 people have been laid off from their aviation industry jobs. The Lycoming
Company, a manufacturer of piston engines in Williamsport, Pa. has laid off over 1,200
workers between 1981 and 1985. Overall employment is down 70% in the aviation
industry. In 1979 the general aviation industry produced nearly 18,000 planes. In
1986, the number decreased to less than 1,500 planes, and in 1987 the industry is
expected to sell less than 1,000 planes.
(Testimonies of Robert Martin, General Counsel for Beech
Aircraft Corporation, Representative Dan Glickman, and
Frederick B. Sontag, president Unison Industries, Inc.,
before Subcommittee on Commerce, Consumer Protection and
Competition, July 9, 1987)
45. Unison Industries, Inc. had to stop an advanced electronic ignition project because
the liability risks were too great. Today they will only undertake technologically
innovative aircraft product development if they have the sponsorship of a larger
company.
(Testimony of Frederick B. Sontag, president Unison
Industries, Inc., before Subcommittee on Commerce, Consumer
Protection and Competition, July 9, 1987)
46.
Half (2,127) of the property/casualty insurance companies are in a potentially
hazardous financial condition, according to the National Association of Insurance
Commissioners. Life and health insurance companies are even worse off.
(The Executive Letter, Insurance Information Institute, July
13, 1987)
47. Because New York does not have a personal responsibility law for skiers, premiums for
New York's ski resorts have been much higher than those of surrounding states, and
thus has caused the industry to lose money and jobs. In the early 70's there were 100
ski areas in the state but in 1986 that number fell to 54.
(The Journal of Commerce, June 23, 1987)
WHAT OTHERS ARE SAYING ABOUT THE EFFECT OF THE
LIABILITY CRISIS ON THE AMERICAN BUSINESS CLIMATE
"[I]t isn't just the poor who are being left behind by the changing nature of the
practice of law. Small companies, middle sized companies, for example, find it
increasingly difficult to operate in today's law world. If you are a small or mid-sized
company faced with thousands of dollars in deposition costs, what do you do? How do you
hang in there?"
-- Speech by Senator Thomas F. Eagleton, 1986 Bar Annual Meeting/Missouri
Judicial Conference; 10/24/86.
"Small business is in a Catch-22 situation when it comes to liability. Legal counsels
at certain times and insurance all of the time are necessities. However, legal counsel is
expensive; in-house counsel is out of the question. With regard to liability coverage,
self-insurance, and in most cases group insurance, are not options for small businesses.
Currently, obtaining certain lines of coverage on the open market may be virtually
impossible."
-- Statement of John J. Motley, III, National Federation of Independent
Business; before the House Ways and Means Committee, March 13, 1986.
"We have been in business for sixteen and one-half years, with a very good loss
record, and have been forced to pay increasingly higher (premiums) every year. This we
accepted but the 300% increase
(in) insurance premiums that were predicted for my
small company
was absolutely intolerable.
We have been preparing for an auction
and there will no longer be a bus company in this area to serve the needs of the
public
I have no alternative than to give up
-- Letter from Dorothy E. Shubat, Shubat Bus Company; to Norman Sherlock,
President, American Bus Association; October 30, 1985.
"To afford dramatically increased insurance prices, small business may divert fund
from business expansion plans, producing a significant loss to the economy of jobs,
products, services and innovations. This loss includes not only the number of small
businesses that contract or fail, but also the number of firms that never start-up because
of the cost or unavailability of insurance."
Frank S. Swain, U.S. Small Business Administration Office of Advocacy,
before the Senate Subcommittee on Business, Trade and Tourism; December 3,
1985
"Wake up, America! In 1984 my product liability insurance premium was $6,000. Today
it is $65,000! This is a 983% increase in four years. Give my corporation another few
years with similar increases and we'll be closing our doors to 75 employees we need
legislation to curb inadequate lawsuits and outrageous awards."
R.J. Fredericks, President of J.F. Fredericks Tool Co., of Farmington,
Conn., in a December 9, 1986 full-page ad in The Hartford Courant.
Document No.
9V OCT 21 P1:56
HOUSE STAFFING MEMORANDUM
DATE:
10/21/91
ACTION/CONCURRENCE/COMMENT DUE BY:
SUBJECT: PRESIDENTIAL REMARKS: CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
ACTION FYI
ACTION FYI
VICE PRESIDENT
HORNER
SUNUNU
MCCLURE
>
SCOWCROFT
PETERSMEYER
DARMAN
PORTER
BRADY
ROGICH
BROMLEY
SMITH
MCBRIDE
CARD
BOSKIN
DEMAREST
KRISTOL
FITZWATER
SNOW
GRAY
HOLIDAY
REMARKS:
The attached has been forwarded to the President.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
THE WHITE HOUSE
WASHINGTON
October 21, 1991
01 OCT 21 P12: 30
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVID DEMAREST
TONY SNOW
i-
FROM:
MARY KATE GRANT mkg
SUBJECT:
CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
I. SUMMARY
On Wednesday, October 23, at 11:45 a.m. in the Roosevelt
Room, you will make brief remarks and sign an Executive Order
implementing changes in the government's handling of civil suits.
You will be addressing the general counsels of the federal
departments and agencies.
II. DISCUSSION
The remarks (8 minutes, on cards) briefly outline the
reforms and talk about the damage that excessive litigation is
causing to the economy. The Vice President, Solicitor General
and Attorney General-designate will be present.
Grant/Simon
A:LAWYERS / Draft three
October 21, 1991
REMARKS: CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
11:45 A.M.
Welcome, everyone. [Acknowledgements]
A little more than two months ago, the Vice President
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, almost 18 million civil suits were filed
in this country -- one for every ten adults. Sadly, we have
become the most litigious society in the world.
In order to restore sanity to our civil justice system, the
Competitiveness Council, chaired by the Vice President, has
recommended extensive and concrete steps that we can take --
starting today -- to get our legal system back on track. These
fifty recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption, in certain areas, of the "loser pays" rule, which
should be called the "fairness rule," to weed out frivolous
lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "junk science" on the witness stand.
I've named only a few of our many recommendations. Some of
these proposals require federal legislation, which we will
transmit to the Congress very soon. We've already submitted
legislation on medical malpractice reform and are supporting
passage of product liability reform legislation. Other proposals
require action by the Supreme Court. Today's Executive Order
will apply most of these recommendations, where possible, to the
federal government. And I'm asking every agency head to do
everything possible to fully and effectively implement the
Executive Order.
with all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgments all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.)) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in some
states because many obstetricians found it wasn't worth it to
practice anymore. I'm talking about beneficial new products that
3
simply never reach the marketplace at all because of liability
concerns.
I'm talking about jobs. We got a letter the other day from
an architect in California named Charles Yaeger. He wrote, "I
have many friends who are going out of business because of fear
of lawsuits."
And I'm talking about inflation and consumer prices. The
owner of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to
us: "As a business owner myself, the liability insurance is
getting out of hand. The manufacturers could significantly lower
their prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
((For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. From the hinderance of new
medicines to local bans of firework displays on the Fourth of
4
July, the fear of outlandish litigation has begun to strangle the
American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor --
and not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President's Competitiveness Council. This is not a
partisan issue -- though I know that the special interest groups
and the partisan appeals have already begun to fight us. It's a
matter of overcoming the vested interests and changing the status
quo to ensure a better and more prosperous life for all
Americans.
The Federal Government is the largest single consumer of
legal resources. As the client, I'm asking you, the government's
top lawyers, to help us change the status quo. The Executive
Order will hold you to higher standards than private
practitioners. But it will also give us the opportunity to the
lead the country toward civil justice reform.
Today we're taking the first step. And now it's my pleasure
to ask the Vice President, Bill Barr and Ken Starr to join me up
front as I sign this Executive Order.
# # #
((rist)
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
\
HORNER
SUNUNU
MCCLURE
>
SCOWCROFT
>
PETERSMEYER
DARMAN
>
PORTER
P
BRADY
ROGICH
BROMLEY
SMITH
CARD
>
McBRIDE
>
SNOW
DEMAREST
9
FITZWATER
BOSKIN
>
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7: 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
almost
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, the
chaned by Via The
working group of the Vice President' Competitiveness Council -^ has
Res,
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
--which shall calad be Re
Adoption of the English rule, or "loser pays" rule in
"fanness
whe"-
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
"junk science"
practice of "hired guns' on the witness stand.
I've named only a few of our recommendations. Some of these
will
proposals require federal legislation, which we hope to transmit
And
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
40
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
state legislates
A.B.A. members around the country. Other proposals require
And
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when N possible, to the
most
federal government. And I'm asking every agency lead to do everything Le can
to fully effectively myle- went
With all that said, let me get to the heart of the matter.
The
exec
We could discuss compensatory and punitive damages, discovery
order
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
as I'm falling aint
that
practice anymore. Many times beneficial new products simply
never reach the marketplace at all because of liability concerns.
I'm falhing ant jobs.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
And I'm fally about
It also affects inflation and consumer prices.
The the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
((For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
...
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
...
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
Nr. Acty Ao,
That's why I feel so strongly about these recommendations by
Comp Carrel That's my I'm 8- gettal $ n +18ml Bont
Ken
Star,
the Vice President. It's not a partisan issue -- but I know that
This
Headed
who
they
The
already the special interest groups and the partisan appeals have
unly
overaning
fung
begun to fight us it's a matter of fighting the vested
of
Re
CC
interests and changing the status quo to ensure a better and more
that
purduced
prosperous life for all Americans.
Prase
the
represent
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
THE WHITE HOUSE
WASHINGTON
October 21, 1991
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVID DEMAREST
TONY SNOW
FROM:
MARY KATE GRANT mkg
SUBJECT:
CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
I. SUMMARY
On Wednesday, October 23, at 11:45 a.m. in the Roosevelt
Room, you will make brief remarks and sign an Executive Order
implementing changes in the government's handling of civil suits.
You will be addressing the general counsels of the federal
departments and agencies.
II. DISCUSSION
The remarks (8 minutes, on cards) briefly outline the
reforms and talk about the damage that excessive litigation is
causing to the economy. The Vice President, Solicitor General
and Attorney General-designate will be present.
Grant/Simon
A:LAWYERS / Draft three
October 21, 1991
REMARKS: CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
11:45 A.M.
Welcome, everyone. [Acknowledgements]
A little more than two months ago, the Vice President
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, almost 18 million civil suits were filed
in this country -- one for every ten adults. Sadly, we have
become the most litigious society in the world.
In order to restore sanity to our civil justice system, the
Competitiveness Council, chaired by the Vice President, has
recommended extensive and concrete steps that we can take --
starting today -- to get our legal system back on track. These
fifty recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption, in certain areas, of the "loser pays" rule, which
should be called the "fairness rule," to weed out frivolous
lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "junk science" on the witness stand.
I've named only a few of our many recommendations. Some of
these proposals require federal legislation, which we will
transmit to the Congress very soon. We've already submitted
legislation on medical malpractice reform and are supporting
passage of product liability reform legislation. Other proposals
require action by the Supreme Court. Today's Executive Order
will apply most of these recommendations, where possible, to the
federal government. And I'm asking every agency head to do
everything possible to fully and effectively implement the
Executive Order.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgments all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in some
states because many obstetricians found it wasn't worth it to
practice anymore. I'm talking about beneficial new products that
3
simply never reach the marketplace at all because of liability
concerns.
I'm talking about jobs. We got a letter the other day from
an architect in California named Charles Yaeger. He wrote, "I
have many friends who are going out of business because of fear
of lawsuits."
And I'm talking about inflation and consumer prices. The
owner of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to
us: "As a business owner myself, the liability insurance is
getting out of hand. The manufacturers could significantly lower
their prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
((For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. From the hinderance of new
medicines to local bans of firework displays on the Fourth of
4
July, the fear of outlandish litigation has begun to strangle the
American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor --
and not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President's Competitiveness Council. This is not a
partisan issue -- though I know that the special interest groups
and the partisan appeals have already begun to fight us. It's a
matter of overcoming the vested interests and changing the status
quo to ensure a better and more prosperous life for all
Americans.
The Federal Government is the largest single consumer of
legal resources. As the client, I'm asking you, the government's
top lawyers, to help us change the status quo. The Executive
Order will hold you to higher standards than private
practitioners. But it will also give us the opportunity to the
lead the country toward civil justice reform.
Today we're taking the first step. And now it's my pleasure
to ask the Vice President, Bill Barr and Ken Starr to join me up
front as I sign this Executive Order.
#. # #
THE WHITE HOUSE
WASHINGTON
October 21, 1991
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVID DEMAREST
TONY SNOW
FROM:
MARY KATE GRANT mkg
SUBJECT:
CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
I. SUMMARY
On Wednesday, October 23, at 11:45 a.m. in the Roosevelt
Room, you will make brief remarks and sign an Executive Order
implementing changes in the government's handling of civil suits.
You will be addressing the general counsels of the federal
departments and agencies.
II. DISCUSSION
The remarks (8 minutes, on cards) briefly outline the
reforms and talk about the damage that excessive litigation is
causing to the economy. The Vice President, Solicitor General
and Attorney General-designate will be present.
Grant/Simon
A:LAWYERS / Draft three
October 21, 1991
REMARKS: CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
11:45 A.M.
Welcome, everyone. [Acknowledgements]
A little more than two months ago, the Vice President
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, almost 18 million civil suits were filed
in this country -- one for every ten adults. Sadly, we have
become the most litigious society in the world.
In order to restore sanity to our civil justice system, the
Competitiveness Council, chaired by the Vice President, has
recommended extensive and concrete steps that we can take --
starting today -- to get our legal system back on track. These
fifty recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption, in certain areas, of the "loser pays" rule, which
should be called the "fairness rule," to weed out frivolous
lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "junk science" on the witness stand.
I've named only a few of our many recommendations. Some of
these proposals require federal legislation, which we will
transmit to the Congress very soon. We've already submitted
legislation on medical malpractice reform and are supporting
passage of product liability reform legislation. Other proposals
require action by the Supreme Court. Today's Executive Order
will apply most of these recommendations, where possible, to the
federal government. And I'm asking every agency head to do
everything possible to fully and effectively implement the
Executive Order.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgments all day long.
((Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.)) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in some
states because many obstetricians found it wasn't worth it to
practice anymore. I'm talking about beneficial new products that
3
simply never reach the marketplace at all because of liability
concerns.
I'm talking about jobs. We got a letter the other day from
an architect in California named Charles Yaeger. He wrote, "I
have many friends who are going out of business because of fear
of lawsuits."
And I'm talking about inflation and consumer prices. The
owner of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to
us: "As a business owner myself, the liability insurance is
getting out of hand. The manufacturers could significantly lower
their prices both wholesale and retail, which would stimulate our
economy.' One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
((For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. ))
You see the problem everywhere. From the hinderance of new
medicines to local bans of firework displays on the Fourth of
4
July, the fear of outlandish litigation has begun to strangle the
American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor --
and not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President's Competitiveness Council. This is not a
partisan issue -- though I know that the special interest groups
and the partisan appeals have already begun to fight us. It's a
matter of overcoming the vested interests and changing the status
quo to ensure a better and more prosperous life for all
Americans.
The Federal Government is the largest single consumer of
legal resources. As the client, I'm asking you, the government's
top lawyers, to help us change the status quo. The Executive
Order will hold you to higher standards than private
practitioners. But it will also give us the opportunity to the
lead the country toward civil justice reform.
Today we're taking the first step. And now it's my pleasure
to ask the Vice President, Bill Barr and Ken Starr to join me up
front as I sign this Executive Order.
# # #
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
Act J At,
That's why I feel so strongly about these recommendations by
Comp Carrel thats by In $ n the cour Kee Sta
the Vice Presidents It's not a partisan issue -- but I know that
This
they
tead
already the special interest groups and the partisan appeals have
begun to fight us It's a matter of fighting overcommy the vested
for
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Gerard Crusel
[Need to put X / etc on back]
The Federal government is the largest single consumer
legal resources. to help Ao the take client, the pirt J step. am The asking
Executive you, E. ader will hold you to higher standards than private
of lawgers the lawyers to fight Jah, "but to member
practitioners. we will be the leader, etc etc.
THE WHITE HOUSE
WASHINGTON
91 OCT 21 A7:
October 18, 1991
MEMORANDUM FOR TONY SNOW
FROM:
ROGER B. PORTER RBP
SUBJECT:
Presidential Remarks: Signing of Executive Order
of Civil Justice Reform
We have reviewed the attached remarks and have a few
suggested comments.
The second sentence of first paragraph on page two
suggests that the Administration has submitted legislation on
product liability reform. This is not accurate. The
Administration has expressed its support for legislation
offered by Senator Kasten, but we have not submitted any
legislation of our own. You might want to change the sentence
to read "We've already submitted legislation on medical
malpractive reform and are supporting the passage of product
liability reform legislation."
The third sentence in the same paragraph claims that state
attorneys general and district attorneys have assisted in
moving proposals forward at the state level. We are not aware
that the National Association of State Attorneys General has
supported this legislation and suggest that this be clarified
to avoid confusion by stating specific individuals or groups
that have expressed support for the legislation.
Finally, the fourth sentence in the same paragraph states
that action by "federal committees" is required on other
proposals. We are unclear what exactly is meant by "federal
committees." Perhaps you could edit this sentence to read
"Other proposals require action by the Supreme Court and the
Congress," or replace the Congress with the specific federal
body that action is required from.
Please let us know if you have any questions or if we may
help in any other way.
CC: Phillip D. Brady
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
1
HORNER
SUNUNU
MCCLURE
SCOWCROFT
>
PETERSMEYER
DARMAN
>
PORTER
BRADY
\
ROGICH
BROMLEY
SMITH
McBRIDE
CARD
DEMAREST
>
SNOW
FITZWATER
BOSKIN
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
31 OCT 17 P 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
no bill
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
who?
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
N
HORNER
SUNUNU
MCCLURE
\
N/C
SCOWCROFT
R
PETERSMEYER
DARMAN
N/C
PORTER
R
BRADY
ROGICH
BROMLEY
SMITH
У
CARD
9
McBRIDE
SNOW
DEMAREST
FITZWATER
>
BOSKIN
N/L
KRISTOL 6605
GRAY 2607
Schear
diaregard
HOLIDAY
MV
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
NATION 1 )
SEE PORTER MEMO PHILLIP
D. BRADY
ATT
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7: 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
(BT)
system now costs Americans an estimated 300 billion dollars a
ALMOST (Br)
(BT)
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
the (BT)
In order to restore sanity to our civil justice system a demand
working group of the Vice President E Competitiveness Council has
chaired by the Vice President
extensive + (BT)
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
- - whichshould be
called the fairness
Adoption of the English rule, or "loser pays" rule ^ in rule"-
certain areas, to weed out frivolous lawsuits;
(krystol)
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
"junk Science" (Krysto1)
practice of "hired guns" on the witness stand.
many (BT)
I've named only a few of our^recommendations. Some of these
will (Krystol)
proposals require federal legislation, which we hope to transmit
And (Kry)
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
bill No (Ported
(kry) We're moving our proposals forward at the state level, too, with
7
the help of state attorneys general, district attorneys, and
who?'
state legislators (Kry)
(Porter)
A.B.A. members around the country. Other proposals require
And
action by the Supreme Court and federal committees, Today's
(Borter)
(And (Kry)
Executive Order will implement still others. This Order will)
most (kry)
where(Key
apply some of these recommendations, when possible, to the
And I'm asking every agency need to do
federal government. everything they can to fully + effectively imple-
ment the executive order. (krystol)
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
And I'm talking about
that (Kly)
practice anymore. Many times, beneficial new products^simply
never reach the marketplace at all because of liability concerns.
(This This is also an issue of rising unemployment and business
I'm talking about Johs. (Kry)
foreclosures We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
And I'm talking about (Kry)
(kry)
It also affects inflation and consumer prices.
the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy." One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
?
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
deleter
operations close because the insurance payments and legal fees
INSERT (OCA)
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
Comp. Cousel. That why I'm so grateful to the VP
the Vice President. It's not a partisan issue -- but I know that Acting
ACT
already the special interest groups and the partisan appeals have B. Barr+
(BT)
it's (15Ry) a matter of fighting the vested
overcoming (Kry)
Ken starr
begun
to
fight
us
who headed
the working
interests and changing the status quo to ensure a better and more group of
the Comp.
prosperous life for all Americans.
Councel that
Today we're taking the first step. And now it's my pleasure produced this tine
the report.
to sign this Executive Order. # # #
[Need to pat General Coursels elz OM back]
(kry)
(Kry)
* SEE ATTACHED PAGE(048)
The Federal Gov. is the largest single consumer
of legal resources. As the client I an asking you, the
lawyers to help US take the finat step. first The Exec. order
will hold you to higher standards than pruate practitioners,
we will be the leader, etc. etc. (Kry)
(Insur)
What some commentators have called a litigation or "lawyers'
tax" is regularly built into the prices of everyday goods.
Thirty percent of the cost of items such as household stepladders
is directly attributable to this tax. In one notable example, a
major drug company increased the cost of its vaccine for DPT from
X
$2.80 per dose in June, 1986, to over $11.40 per dose one year
later -- an increase of more than 400 percent.
(CCA)
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
V
91 OCT 18 A10: 51
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
N
HORNER
SUNUNU
MCCLURE
9
SCOWCROFT
>
PETERSMEYER
DARMAN
PORTER
P
BRADY
ROGICH
BROMLEY
SMITH
У
McBRIDE
CARD
DEMAREST
>
SNOW
BOSKIN
FITZWATER
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
OK ) Q few suggestion
BA for 8R
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7: 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ( (That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended extensive and concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our Many recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits." "
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy. " One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. If ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Document No.
278934
7692
WHITE HOUSE STAFFING MEMORANDUM
91 OCT 18 P4: 49
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
\
HORNER
SUNUNU
MCCLURE
>
SCOWCROFT
PETERSMEYER
DARMAN
PORTER
BRADY
A
ROGICH
BROMLEY
SMITH
>
CARD
>
McBRIDE
>
SNOW
DEMAREST
9
FITZWATER
BOSKIN
>
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
MEMORANDUM FOR TONY SNOW
October 18, 1991
The NSC staff concurs with the draft presidential remarks.
Brent Rata Scowcroft
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
CC: Phillip D. Brady
Ext. 2702
RECEIVED
91 OCT18 A7:20
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7: 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ( (That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
o
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy. " One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Grant/Simon
A:LAWYERS
Draft two
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years. ))
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy. " One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
((For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
...
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
91 OCT 18 P4: 39
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
<
HORNER
SUNUNU
MCCLURE
\
SCOWCROFT
>
PETERSMEYER
DARMAN
PORTER
BRADY
A
ROGICH
BROMLEY
SMITH
У
CARD
>
McBRIDE
SNOW
DEMAREST
9
FITZWATER
\
BOSKIN
>
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
no comment
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7 : 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits."
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy. " One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
were too much. From the hinderance of new medicines to local
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
Document No.
278934
WHITE HOUSE STAFFING MEMORANDUM
91 OCT 18 P5: 10
DATE:
10/17/91
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 p.m. Friday 10/18
PRESIDENTIAL REMARKS: SIGNING OF EXECUTIVE ORDER ON CIVIL JUSTICE
SUBJECT:
(10/16 Draft two)
REFORM/Oct. 23
ACTION FYI
ACTION FYI
VICE PRESIDENT
1
HORNER
SUNUNU
MCCLURE
>
SCOWCROFT
>
PETERSMEYER
DARMAN
PORTER
BRADY
ROGICH
У
BROMLEY
SMITH
>
CARD
>
McBRIDE
>
SNOW
DEMAREST
9
FITZWATER
>
BOSKIN
>
KRISTOL
GRAY
HOLIDAY
REMARKS:
Please provide any comments directly to Tony Snow, Rm. 122,
x2930, no later than 5:00 p.m. on Friday, 10/18, with a copy
to this office. Thanks.
RESPONSE:
Comments from Cabinet Affairs are attached.
Thanks,
EL
Elizabeth Luttig
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Grant/Simon
A:LAWYERS
Draft two
01 OCT 17 P7 : 23
October 16, 1991
REMARKS: SIGNING OF EXECUTIVE ORDER
ON CIVIL JUSTICE REFORM
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991
TIME?
[Acknowledgements]
A little more than two months ago, Vice President Quayle
outlined the Administration's agenda for civil justice reform
before the American Bar Association. ((That speech unleashed a
national debate // a flurry of mail here at the White House //
and some of the best lawyer jokes I've heard in years.) )
But I'm not here today to make an easy hit on lawyers.
Frankly, I don't think the problem rests with lawyers -- the
problem stems from a system spun out of control. The legal
system now costs Americans an estimated 300 billion dollars a
year, and in 1989 alone, more than 18 million civil suits were
filed in this country -- one for every ten adults. Sadly, we
have become the most litigious society in the world.
In order to restore sanity to our civil justice system, a
working group of the Vice President's Competitiveness Council has
recommended concrete steps that we can take -- starting today --
to get our legal system back on track. These fifty
recommendations include:
Changes in the rules of discovery, to end unnecessary and
burdensome requests;
Adoption of the English rule, or "loser pays" rule, in
certain areas, to weed out frivolous lawsuits;
2
Encouragement of alternative dispute resolution, so that
Americans have more choices than just formal litigation;
Caps on punitive damages, to end their arbitrary application
and outlandish awards;
And changes in the rules on expert evidence, to end the
practice of "hired guns" on the witness stand.
I've named only a few of our recommendations. Some of these
proposals require federal legislation, which we hope to transmit
to the Congress very soon. We've already submitted legislation
on medical malpractice reform and product liability reform.
We're moving our proposals forward at the state level, too, with
the help of state attorneys general, district attorneys, and
A.B.A. members around the country. Other proposals require
action by the Supreme Court and federal committees. Today's
Executive Order will implement still others. This Order will
apply some of these recommendations, when possible, to the
federal government.
With all that said, let me get to the heart of the matter.
We could discuss compensatory and punitive damages, discovery
limits, and reforming summary judgements all day long.
( (Unfortunately I am prevented from doing that by the ban on
cruel and unusual punishment.) ) But that's not really the point.
What's actually at stake here is much more important.
I'm talking about access to health care and quality of life
-- parents having a tough time finding an obstetrician in certain
states because many obstetricians found it wasn't worth it to
3
practice anymore. Many times, beneficial new products simply
never reach the marketplace at all because of liability concerns.
This is also an issue of rising unemployment and business
foreclosures. We got a letter the other day from an architect in
California named Charles Yaeger. He wrote, "I have many friends
who are going out of business because of fear of lawsuits." "
It also affects inflation and consumer prices. -- the owner
of Zaun's Trustworthy Hardware in Iowa, Brad Zaun, wrote to us:
"As a business owner myself, the liability insurance is getting
out of hand. The manufacturers could significantly lower their
prices both wholesale and retail, which would stimulate our
economy.' One study showed that foreign companies often have
product liability insurance costs that are 50, 80, even 90
percent lower than the rates paid by their counterparts in the
United States.
Maybe other countries don't have this problem because every
other Western democracy has the "loser pays" rule to discourage
senseless lawsuits. Maybe it's because we have nearly three-
quarters of the world's lawyers here in America. Maybe it's
because the pop culture in this country encourages lawsuits.
( (For example, I don't know if you've seen Hulk Hogan's new
movie /// but at one point he asks the bad guys if they're going
to beat him up. // You know what they replied? "Hey, this is
the '90s -- we're going to sue you. " ))
You see the problem everywhere. Every parent who has signed
a kid up for the football team has seen it
used to be you
4
just bought kids a mouthpiece
...
now you sign your life away on
liability waivers. Every small business owner who pays liability
insurance has seen it
...
because he's seen mom-and-pop
operations close because the insurance payments and legal fees
(see insul attacked)
were too much.
From the hinderance of new medicines to local
A
bans of firework displays on the Fourth of July, the fear of
outlandish litigation has begun to strangle the American Dream.
Americans understand that civil justice reform means growth,
competitiveness, and jobs. It also means a return to more civil
relations in this country, a return to the days that when a
baseball crashed through the window, you called your neighbor and
not your lawyer. People of all walks of life -- Republicans,
Democrats, businessmen, factory workers, parents, and yes --
lawyers -- want to see changes in our legal system.
That's why I feel so strongly about these recommendations by
the Vice President. It's not a partisan issue -- but I know that
already the special interest groups and the partisan appeals have
begun to fight us -- it's a matter of fighting the vested
interests and changing the status quo to ensure a better and more
prosperous life for all Americans.
Today we're taking the first step. And now it's my pleasure
to sign this Executive Order. # # #
CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991 \ 11:45 A.M.
WELCOME, EVERYONE. I'M GRATEFUL TO VICE PRESIDENT
QUAYLE FOR HIS HARD WORK ON THIS ISSUE; TO OUR NOMINEE
FOR ATTORNEY GENERAL, BILL BARR; AND TO THE SOLICITOR
GENERAL, KEN STARR, WHO HEADED THE WORKING GROUP THAT
PRODUCED THIS FINE REPORT.
- 2 -
A LITTLE MORE THAN TWO MONTHS AGO, THE VICE
PRESIDENT OUTLINED THE ADMINISTRATION'S AGENDA FOR
CIVIL JUSTICE REFORM BEFORE THE AMERICAN BAR
ASSOCIATION. ((THAT SPEECH UNLEASHED A NATIONAL DEBATE
// A FLURRY OF MAIL HERE AT THE WHITE HOUSE /// AND
SOME OF THE BEST LAWYER JOKES I'VE HEARD IN YEARS.))
BUT WE'RE NOT HERE TODAY TO MAKE AN EASY HIT ON
LAWYERS.
- 3 -
FRANKLY, I DON'T THINK THE PROBLEM RESTS WITH LAWYERS
-- THE PROBLEM STEMS FROM A LEGAL SYSTEM SPUN OUT OF
CONTROL. SADLY, WE HAVE BECOME THE MOST LITIGIOUS
SOCIETY IN THE WORLD.
IN ORDER TO RESTORE SANITY TO OUR CIVIL JUSTICE
SYSTEM, THE COMPETITIVENESS COUNCIL, CHAIRED BY THE
VICE PRESIDENT, HAS RECOMMENDED EXTENSIVE AND CONCRETE
STEPS THAT WE CAN TAKE -- STARTING TODAY -- TO GET OUR
LEGAL SYSTEM BACK ON TRACK.
- 4 -
THESE FIFTY RECOMMENDATIONS INCLUDE CHANGES IN THE
RULES OF DISCOVERY; ADOPTION, IN CERTAIN AREAS, OF THE
"LOSER PAYS" RULE; ENCOURAGEMENT OF ALTERNATIVE DISPUTE
RESOLUTION; CAPS ON PUNITIVE DAMAGES; AND CHANGES IN
THE RULES ON EXPERT EVIDENCE, TO END THE USE OF "JUNK
SCIENCE" ON THE WITNESS STAND.
I'VE NAMED ONLY A FEW OF OUR MANY RECOMMENDATIONS.
SOME OF THESE PROPOSALS REQUIRE FEDERAL LEGISLATION,
WHICH WE WILL TRANSMIT TO THE CONGRESS VERY SOON.
- 5 -
OTHER PROPOSALS REQUIRE ACTION BY THE SUPREME COURT.
TODAY'S EXECUTIVE ORDER WILL APPLY MOST OF THESE
RECOMMENDATIONS, WHERE POSSIBLE, TO THE FEDERAL
GOVERNMENT. AND I'M ASKING EVERY AGENCY HEAD TO DO
EVERYTHING POSSIBLE TO FULLY AND EFFECTIVELY IMPLEMENT
THE EXECUTIVE ORDER.
WITH ALL THAT SAID, LET ME GET TO THE HEART OF THE
MATTER. CIVIL JUSTICE REFORM IS VITAL TO AMERICA'S
WELL-BEING.
- 6 -
I'M TALKING ABOUT ACCESS TO HEALTH CARE AND QUALITY OF
LIFE -- PARENTS ARE HAVING A TOUGH TIME FINDING AN
OBSTETRICIAN IN SOME STATES BECAUSE MANY OBSTETRICIANS
FOUND IT WASN'T WORTH IT TO PRACTICE ANYMORE. I'M
TALKING ABOUT BENEFICIAL NEW PRODUCTS THAT NEVER REACH
THE MARKETPLACE AT ALL BECAUSE OF LIABILITY CONCERNS.
I'M TALKING ABOUT JOBS. WE GOT A LETTER THE OTHER
DAY FROM AN ARCHITECT IN CALIFORNIA NAMED CHARLES
YAEGER. HE WROTE, "I HAVE MANY FRIENDS WHO ARE GOING
OUT OF BUSINESS BECAUSE OF FEAR OF LAWSUITS."
- 7 -
AND I'M TALKING ABOUT INFLATION AND CONSUMER
PRICES. THE OWNER OF ZAUN'S TRUSTWORTHY HARDWARE IN
IOWA, BRAD ZAUN, WROTE TO US: "As A BUSINESS OWNER
MYSELF, THE LIABILITY INSURANCE IS GETTING OUT OF HAND.
THE MANUFACTURERS COULD SIGNIFICANTLY LOWER THEIR
PRICES BOTH WHOLESALE AND RETAIL, WHICH WOULD STIMULATE
OUR ECONOMY."
MAYBE OTHER COUNTRIES DON'T HAVE THIS PROBLEM
BECAUSE EVERY OTHER WESTERN DEMOCRACY HAS THE "LOSER
PAYS" RULE TO DISCOURAGE SENSELESS LAWSUITS.
- 8 -
MAYBE IT'S BECAUSE WE HAVE MOST OF THE WORLD'S LAWYERS
HERE IN AMERICA. MAYBE IT'S BECAUSE THE POP CULTURE IN
THIS COUNTRY ENCOURAGES LAWSUITS.
((FOR EXAMPLE, I DON'T KNOW IF YOU'VE SEEN HULK
HOGAN'S NEW MOVIE /// BUT AT ONE POINT HE ASKS THE BAD
GUYS IF THEY'RE GOING TO BEAT HIM UP. // You KNOW WHAT
THEY REPLIED? "HEY, THIS IS THE '90s -- WE'RE GOING TO
SUE YOU." ))
- 9 -
You SEE THE PROBLEM EVERYWHERE. FROM THE
HINDERANCE OF NEW MEDICINES To LOCAL BANS OF FIREWORK
DISPLAYS ON THE FOURTH OF JULY, THE FEAR OF OUTLANDISH
LITIGATION HAS BEGUN TO STRANGLE THE AMERICAN DREAM.
AMERICANS UNDERSTAND THAT CIVIL JUSTICE REFORM
MEANS GROWTH, COMPETITIVENESS, AND JOBS. THAT'S WHY I
FEEL so STRONGLY ABOUT THESE RECOMMENDATIONS BY THE
VICE PRESIDENT'S COMPETITIVENESS COUNCIL.
- 10 -
THIS IS NOT A PARTISAN ISSUE -- IT'S A MATTER OF
OVERCOMING THE VESTED INTERESTS AND CHANGING THE STATUS
QUO TO ENSURE A BETTER AND MORE PROSPEROUS LIFE FOR ALL
AMERICANS.
THE FEDERAL GOVERNMENT IS THE LARGEST SINGLE
CONSUMER OF LEGAL RESOURCES. As THE CLIENT, I'M ASKING
YOU, THE GOVERNMENT'S TOP LAWYERS, TO HELP US CHANGE
THE STATUS QUO. THE EXECUTIVE ORDER WILL HOLD YOU TO
HIGHER STANDARDS THAN PRIVATE PRACTITIONERS.
- 11 -
BUT IT WILL ALSO GIVE US THE OPPORTUNITY TO LEAD THE
COUNTRY -- BY EXAMPLE -- TOWARD CIVIL JUSTICE REFORM.
TODAY WE'RE TAKING THE FIRST STEP. AND NOW IT'S MY
PLEASURE TO ASK BILL BARR AND KEN STARR TO JOIN US UP
FRONT AS I SIGN THIS EXECUTIVE ORDER.
#
#
#
CIVIL JUSTICE REFORM EXECUTIVE ORDER SIGNING
THE ROOSEVELT ROOM
WEDNESDAY, OCTOBER 23, 1991 \ 11:45 A.M.
WELCOME, EVERYONE. I'M GRATEFUL TO VICE PRESIDENT
QUAYLE FOR HIS HARD WORK ON THIS ISSUE; To OUR NOMINEE
FOR ATTORNEY GENERAL, BILL BARR; AND TO THE SOLICITOR
GENERAL, KEN STARR, WHO HEADED THE WORKING GROUP THAT
PRODUCED THIS FINE REPORT.
- 2 -
A LITTLE MORE THAN TWO MONTHS AGO, THE VICE
PRESIDENT OUTLINED THE ADMINISTRATION'S AGENDA FOR
CIVIL JUSTICE REFORM BEFORE THE AMERICAN BAR
ASSOCIATION. ((THAT SPEECH UNLEASHED A NATIONAL DEBATE
// A FLURRY OF MAIL HERE AT THE WHITE HOUSE /// AND
SOME OF THE BEST LAWYER JOKES I'VE HEARD IN YEARS.))
BUT WE'RE NOT HERE TODAY TO MAKE AN EASY HIT ON
LAWYERS.
- 3 -
FRANKLY, I DON'T THINK THE PROBLEM RESTS WITH LAWYERS
-- THE PROBLEM STEMS FROM A LEGAL SYSTEM SPUN OUT OF
CONTROL. SADLY, WE HAVE BECOME THE MOST LITIGIOUS
SOCIETY IN THE WORLD.
IN ORDER TO RESTORE SANITY TO OUR CIVIL JUSTICE
SYSTEM, THE COMPETITIVENESS COUNCIL, CHAIRED BY THE
VICE PRESIDENT, HAS RECOMMENDED EXTENSIVE AND CONCRETE
STEPS THAT WE CAN TAKE -- STARTING TODAY -- TO GET OUR
LEGAL SYSTEM BACK ON TRACK.
- 4 -
THESE FIFTY RECOMMENDATIONS INCLUDE CHANGES IN THE
RULES OF DISCOVERY; ADOPTION, IN CERTAIN AREAS, OF THE
"LOSER PAYS" RULE; ENCOURAGEMENT OF ALTERNATIVE DISPUTE
RESOLUTION; CAPS ON PUNITIVE DAMAGES; AND CHANGES IN
THE RULES ON EXPERT EVIDENCE, TO END THE USE OF "JUNK
SCIENCE" ON THE WITNESS STAND.
I'VE NAMED ONLY A FEW OF OUR MANY RECOMMENDATIONS.
SOME OF THESE PROPOSALS REQUIRE FEDERAL LEGISLATION,
WHICH WE WILL TRANSMIT TO THE CONGRESS VERY SOON.
- 5 -
OTHER PROPOSALS REQUIRE ACTION BY THE SUPREME COURT.
TODAY'S EXECUTIVE ORDER WILL APPLY MOST OF THESE
RECOMMENDATIONS, WHERE POSSIBLE, TO THE FEDERAL
GOVERNMENT. AND I'M ASKING EVERY AGENCY HEAD TO DO
EVERYTHING POSSIBLE TO FULLY AND EFFECTIVELY IMPLEMENT
THE EXECUTIVE ORDER.
WITH ALL THAT SAID, LET ME GET TO THE HEART OF THE
MATTER. CIVIL JUSTICE REFORM IS VITAL TO AMERICA'S
WELL-BEING.
- 6 -
I'M TALKING ABOUT ACCESS TO HEALTH CARE AND QUALITY OF
LIFE -- PARENTS ARE HAVING A TOUGH TIME FINDING AN
OBSTETRICIAN IN SOME STATES BECAUSE MANY OBSTETRICIANS
FOUND IT WASN'T WORTH IT TO PRACTICE ANYMORE. I'M
TALKING ABOUT BENEFICIAL NEW PRODUCTS THAT NEVER REACH
THE MARKETPLACE AT ALL BECAUSE OF LIABILITY CONCERNS.
I'M TALKING ABOUT JOBS. WE GOT A LETTER THE OTHER
DAY FROM AN ARCHITECT IN CALIFORNIA NAMED CHARLES
YAEGER. HE WROTE, "I HAVE MANY FRIENDS WHO ARE GOING
OUT OF BUSINESS BECAUSE OF FEAR OF LAWSUITS."
- 7 -
AND I'M TALKING ABOUT INFLATION AND CONSUMER
PRICES. THE OWNER OF ZAUN'S TRUSTWORTHY HARDWARE IN
IOWA, BRAD ZAUN, WROTE TO US: "As A BUSINESS OWNER
MYSELF, THE LIABILITY INSURANCE IS GETTING OUT OF HAND.
THE MANUFACTURERS COULD SIGNIFICANTLY LOWER THEIR
PRICES BOTH WHOLESALE AND RETAIL, WHICH WOULD STIMULATE
OUR ECONOMY."
MAYBE OTHER COUNTRIES DON'T HAVE THIS PROBLEM
BECAUSE EVERY OTHER WESTERN DEMOCRACY HAS THE "LOSER
PAYS" RULE TO DISCOURAGE SENSELESS LAWSUITS.
- 8 -
MAYBE IT'S BECAUSE WE HAVE MOST OF THE WORLD'S LAWYERS
HERE IN AMERICA. MAYBE IT'S BECAUSE THE POP CULTURE IN
THIS COUNTRY ENCOURAGES LAWSUITS.
((FOR EXAMPLE, I DON'T KNOW IF YOU'VE SEEN HULK
HOGAN'S NEW MOVIE /// BUT AT ONE POINT HE ASKS THE BAD
GUYS IF THEY'RE GOING TO BEAT HIM UP. // You KNOW WHAT
THEY REPLIED? "HEY, THIS IS THE '90s -- WE'RE GOING TO
SUE YOU." ))
- 9 -
You SEE THE PROBLEM EVERYWHERE. FROM THE
HINDERANCE OF NEW MEDICINES TO LOCAL BANS OF FIREWORK
DISPLAYS ON THE FOURTH OF JULY, THE FEAR OF OUTLANDISH
LITIGATION HAS BEGUN TO STRANGLE THE AMERICAN DREAM.
AMERICANS UNDERSTAND THAT CIVIL JUSTICE REFORM
MEANS GROWTH, COMPETITIVENESS, AND JOBS. THAT'S WHY I
FEEL so STRONGLY ABOUT THESE RECOMMENDATIONS BY THE
VICE PRESIDENT'S COMPETITIVENESS COUNCIL.
IT
- 10 -
THIS IS NOT A PARTISAN ISSUE -- IT'S A MATTER OF
OVERCOMING THE VESTED INTERESTS AND CHANGING THE STATUS
QUO TO ENSURE A BETTER AND MORE PROSPEROUS LIFE FOR ALL
AMERICANS.
THE FEDERAL GOVERNMENT IS THE LARGEST SINGLE
CONSUMER OF LEGAL RESOURCES. As THE CLIENT, I'M ASKING
YOU, THE GOVERNMENT'S TOP LAWYERS, TO HELP US CHANGE
THE STATUS QUO. THE EXECUTIVE ORDER WILL HOLD YOU TO
HIGHER STANDARDS THAN PRIVATE PRACTITIONERS.
- 11 -
BUT IT WILL ALSO GIVE US THE OPPORTUNITY TO LEAD THE
COUNTRY -- BY EXAMPLE -- TOWARD CIVIL JUSTICE REFORM.
TODAY WE'RE TAKING THE FIRST STEP. AND NOW IT'S MY
PLEASURE TO ASK BILL BARR AND KEN STARR TO JOIN US UP
FRONT AS I SIGN THIS EXECUTIVE ORDER.
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