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Waukesha County Picnic 9/6/92 [OA 5812] [2]
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SPEDITS
Provost/Bunton
PUT
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- the day we honor American workers.
Alith A little
And honor it is that they deserve, because despite what you might
reg.
here these days the men of women of America are the still the most
hear
(unlers you
link H
it
Mey
then
estice
productive workers in the world.
to a
in But rather Su Faday than just talking to you about the American
If
worker I want to talk to you about a problem that affects you
and every other worker -- our crazy, out-of control - legal
system.
A serious discussion about legal reform may seem a little
odd as a topic for a picnic. But I think you deserve more than
talk from your political leaders -- you need answers. Answers to
the most pressing question before America today -- how can we
guarantee that we will remain not just a military superpower --
but an export superpower, and an economic superpower. //
As I see it, our current legal system is a roadblock that
must be cleared from the path of America's economic progress.
Let me start by talk about a famous American enforcer of
justice. I don't mean Oliver Wendall Holmes or Earl Warren. I
mean someone more famous than that. I mean -- Hulk Hogan. //
Chk spelling
(Think its
Not pupular WarmBurger?
John Mansholl?
2
My grandkids tell me that in his movie last year -- Hulk
Hogan was confronted with the predictable crop of bad guys. Only
the bad guys refused to fight Hulk. Instead they said, "this is
the nineties -- we're not going to fight you. We are going to
sue you. "
sums
I fear that one statement, somes up a lot of what is
troubling America today.
Pick up the newspaper, the stories roll out at you.
Like by now famous the story about the basketball referee,
who made a controversial call at the buzzer of a Purdue-Iowa
basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that much demand. So what did the company do? They sued the
referee. Sound crazy? It took two years, and a lot of money,
before the case was dismissed by the State Supreme Court.
Are these crazy legal stories just intended to give us
something to make our friends chuckle at backyard barbecues. I
don't think so. It's much more serious than that.
Look around here in Wisconsin, right here in Waukesha.
Awk?
Anybody here cheer for the football Spartans -- of East
Aquestor
Brookfield High School. I'm told Coach Jack Perry and his team
now pay almost $150 bucks for every football helmet -- they years
ago they paid about a third of that. Why the price increase?
Because over the past 18 years, 18 American companies have
stopped selling football helmets -- because they can't afford the
insurance. (Before this is over, we may go back to the days of
3
Jim Thorpe -- when people played football without helmets. Is
that progress?)
The legal crisis has crept into every corner of our lives.
delete
Try signing up for mountain climbing at the Waukesha School
district physical education class. Sorry, they can't afford the
insurance. Try finding a trampoline in a local school. Try
taking a kid on a bike or canoe trip -- sorry again.
But you don't just have to go to a school -- stop by your
delik
local accountant. People today sue CPA's at the drop of a
number. So four out of ten accountants in Wisconsin are going
without insurance.
Now, Waukesha and Wisconsin aren't unique -- except in their
physical beauty. This kind of thing is happening every day in
every town across America. And we are all paying the price.
Now understand, this is not a criticism of lawyers. They
are an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But the good
lawyers will tell you, the system is out of control.
In the past 20 years, the number of lawsuits (filed in
federal courts) has doubled. Today, the average case takes a
year to be resolved -- and in the past year alone -- the number
of cases that were pending for 3 years, increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, pass
the bar, and then represent yourself in court on the day the
decision is reached.)
My background papers had west. Arain
4
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
fraining a
economy.) To me that's crazy. As a nation, I believe it's high
stat
time, that we started suing each other less, and caring for each
other more.//
That is why I have sent Congress a comprehensive legislation
to reform our Civil Justice System. It is complete with specific
proposals. We want to solve more disputes early -- before they
get dragged into the courtroom. // We want to speed the legal
Passe
process, there is no reason anyone can go through law school
faster than it takes a court to reach a verdict. We want to put
a lid on outrageous punitive damages, that strike terror into
every mom and dad who wants to coach their kids football team. //
And here's one big idea. I believe we should copy a practice
from our friends in Britain -- and make the loser pay the
winner's court fees. You think that T-shirt company would have
sued that referee -- if they'd known they'd end up footing his
legal bills?//
5
This is one part of the crisis in our civil justice system -
-what we call civil justice. But we also need change in our
product liability laws. These are the laws that are supposed to
allow people to be compensated for harm caused to them by a
defective product. That's an important right and I am all for
it. People ought to receive fair compensation when a product is
defective and they get hurt.
But like so the rest of our civil justice system, product
liability has careened out of control.
Let me give you an example of what I'm talking about.
(insert new example.) (fraall (crall bu) bus)
Here's the problem. The product liability laws vary from
state to state and the rules have encouraged crazy lawsuits, and
outrageous awards. The cost of defending these lawsuits has
escalated. A lot for of trial lawyers bring lawsuits, knowing that
it is cheaper to companies to settle the case that to pay their
own lawyers to defend them through trial. And the cost of
insurance keeps skyrocketing.
Big deal, right? So companies have to pay extra for a few
lawyers. But it's not just companies who foot the bill, we all
pay higher prices -- for everything from medicine to step
ladders.
It's worse than that. We never seen a lot of good products
-- because companies are afraid of liability.
American Pris. Conference
Chk this are, Be sine our
regulators havent
6
Veptitoul
In Europe, for example, Volvo offers parents a car seat --
built right in the car. You can't buy one in the U.S. today --
and may never be able to. No company wants to deal with our
laws.
And if you're in Europe, and you suffer from AIDS, you can
double
get medical treatment you can't get in the United States.
Medical companies are afraid of the liability.
But it's all worth it right, because when someone does get
hurt, they can a big settlement? Again, that's not what's
happening. More than half of all the money awarded by juries in
product liability cases, goes not to the injured party, but to
the lawyers. Think about that. More than half of all the awards
-- ends up in the pockets of Brooks Brothers suits.
But here's the real problem. Our product liability system
is killing our economic competitiveness.
Liability costs are 15 times greater than that in Japan,
and 20 times greater than that in Europe. Our businesses --
especially our small businesses -- are staggering under a weight
our competitors don't even carry.
Every dollar we spend around a courtroom, is a dollar we
won't spend on training, education, research, investment. It
he
will the difference between no jobs for our kids -- and good jobs
for our kids.
We have to do something about this -- if we want our kids to
have job. Luckily, Senator Bob Kasten understands this. He has
to
been the fighter change the system.
port assume Knows very abunt the about one Id ase the letter. Hagnote. Then Congress t.e back to
7
Bob has put forth a plan -- which I have endorsed -- to
speed the legal process -- and settle more cases out of court --
which will help everyone.
We want uniformity in product liability law -- instead of
the confusing 51 separate standards we have today. We want to
have the same rules for damages from one state to the next. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The day my pen signs Senator Kasten's bill -- is the day
our workers get a leg up on other workers.
So what's the problem? Why do we still face this crisis?
Bob Kasten will tell you the problem. The Gridlock Congress.
I know you are sick of the blame-game in Washington, but we
can't ignore the facts.
Mr.
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
puth
in tasselled loafers with a check in hand.
That's why product liability reform has been blocked, for
Chinah
almost two decades. In fact, trial lawyers money has prevented
product liability from ever coming to a full vote.
But this week, we have a chance -- to stop undermining our
American workers.
Product liability reform will be up before the U.S. Senate.
very
We believe we have the votes -- to pass the Senate.
Whit we have a majority of the Sendb,
8
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you after you
cut your knee. But it's not. It's the number of votes it takes
--to stop long-winded debate in the U.S. Congress. (As you can
imagine getting Congress to stop talking about anythng requires
some effort.) (In feet, it takermak extra voter tuget So then to
stay
60
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the most-needed legal
19/2,
reform in a decade -- by using a legal loophole.
Mac
they
to
Bob Kasten doesn't want that to happen -- and neither do I.
I need a labor day present for the American economy, and for the
hbig)
jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of paying for crazy lawsuits. Tired of
high prices. Tired of unsafe products. Most of all, we're tired
of loosing jobs to foreign competitors. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult and injury -- we
naively attempt to rid our world of risk. of course, we should
Some
not be reckless, but risk is part of life, part of America.
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
Sten:Th voters are very anti-risk Can you responsibility" close W. a different der
"accept
(new
carder
Perhaps Ireatly that wereed to avoid the risk
9
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Wisconsin. God Bless
the United States of America.
# # #
We want to
give ther
people than trials to Resolve
options
7
their disputes.
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
uniformity in
And we want to have one national product liability law --
51 separate ones
instead of the confusing 50 (ones) we have today. We want to put
uniform standards for
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers. with a check.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost two
decade S. In fact, trial lawyer money has been
able to keep product liability reform from ever
coming to a full vote.
8
stop underming etc
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House and we believe we have the votes to for it
to pass, the Senate
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
Senators
wound shut. But it's not. It's the number of votes it takes --
permit have a vote in the U.S. Compan
to stop debate in the U.S. Congress.
(As
you
can
imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
most-Nee0ed
the irony -- Congress may be able to stop the greatest legal
this
reform in a decade -- by using A legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading paying for about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans the Japanese. //
freign competitors
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
No oNe
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan God Bless the
United States of America.
# # #
Wisconsin
But injured by when should Need
people detective phe are
a
<<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<
systemens w/o possible.
in
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
92 SEP 4 P8: 31
DATE: 9/4/92
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5.
!!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
office. Thank you.
RESPONSE:
Comments attached
PHILLIP D. BRADY
The changes on pp 5-7 on
Assistant to the President
and Staff Secretary
particularly important 6.5chaur
Ext. 2702
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower / /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
Howard
What do all these lawyers do? Lots of things. But
they sue. In the past 20 years, the number of
shouldnson
lawsuits (filed in federal courts?) has doubled. Today, the
the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
football
team
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more? / /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
substitute for
use the courts as harassment -- an expensive equivalent of a car
horn.
(count awards that,
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to for protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
Even as a joke, this seems a but
cavalier, and I'm not sure
people mul get it
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
go into
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's u and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
costs
The money we spend on legal explosion is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
that
me
And we want to have one national product liability law in
Broad
know my never
instead of the confusing 50 (ones) we have today. We want to put
s
a cap on punitive damages -- which don't even exist outside the
want
your and
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
is concept a
to
,ust
want to bring some rationality to the system.
"
their
The plan is pro-consumer, pro-business, pro-safety, and pro-
a
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
word
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes
to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
and there we should be
minor
compensated when
someone instits wrongly
USE causes serious injury,
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
they
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903 1 had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Wisconsin
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
THE WHITE HOUSE
WASHINGTON
September 4, 1992
MEMORANDUM FOR DAN McGROARTY
FROM:
ROGER B. PORTER
RBP
SUBJECT:
Presidential Remarks: Waukesha County Picnic
We have reviewed the attached remarks and have noted several
suggested changes on the draft.
Please let us know if you have any questions or if we may
help in any other way.
CC: Phillip D. Brady
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:39 ;
The White House->
202 456 7739:# 2
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
DATE:
9/4/92
ACTION/CONCURRENCE/COMMENT DUESY:
TODAY,
9/4
5:00pm!
11
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
office. Thank you.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:40 ;
The White House-
202 456 7739;# 3
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
WHILE THOSE WHO PUT IN A HARD DAYS WORK CERTAINLY DESERVE OUR PRAISE,
But I'm not going to do that today. This is an uncertain
time for all our I American workers. Our economy is undergoing a
TO A TROBAL ECONOMY
global transition)- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we/guarantee that we will III remain not
BUILD UPON OUR STRENGTHS AND
just I a military superpower -- but I an export superpower, and an
economic superpower. / /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
RESTRAIN
family, and give you relief from a government that spends too
much -- and takes too much of your money. 11
'SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:40 :
The White House-
202 456 7739;# 4
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled SO high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front)
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
S
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. so what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:41
;
The White House-
202 456 7739;# 5
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
EVEN IN 1988 WE WERE ACREADY GRADUATING MORE CAWLERS
those countries. And this year, more people will graduate from
THAN DOCTORS COMPUTER PROBRAMMERS AND
t
1aw school than from engineering, medicine and
combined.
ENHIMEERING Ph. D.S COMBINEDO
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:41
;
The White House-
202 456 7739;# 6
IN LELAC SERVICES
THIS YEARO
CONSUMERS AND
4
UP TO
study, American companies spend $200 billion dollars on/directty on
will
costs to lawyers. Keep in mind, that doesn't even count the
COMPANY
GETTING PAID AS
lawyers on their own payrolls, or the money they end up paying in
A RESULT of LARGE DAMMAGE ANARDSO
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
TO COMPETE IN THE EMERGING
and legal fees -- than on training our workers Yfor the new
ELOBAL economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
FOOTBALL
THE
Ask Jack Perry, Coach of football Spartans at at East
SPARTANS
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
BECAUSE THEY CANT AFFORD THE PREMIUMS
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:42 ;
The White House-
202 456 7739;# 7
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say ... "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?/ /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers, ALTERNATIVE
DISPUTE RESOLUTION
teachers, doctors, coaches.
CAN BE
CONDUCTED IN
I've put forward a comprehensive reform of our Civil Justice COURTHOUSES
System -- complete with specific proposals to solve disputes
Room
outside of the courthouse, to speed the legal process, to control
AND
the use of expert witnesses, Y to control outrageous punitive
WE ARE TRYING
ADOPT
damages. And I believe we should copy a practice from our
THIS OUT IN
IN APPROPRIATE CASES
FEDERAL
friends in Britain -- and make the loser pay the winner's court
DIVERSITY CASE
ONLY. WE HAVE
fees. I have a feeling that would put a stop to people who just
Also ADVOCATED
WHERE SETTLEMENT
use the courts TO 18 harassment an expensive equivalent of a car OFFER REFUSED
I OTHERSO
AND COURT
norn.
horn
VERDICT SHOWS
OFFER WAS
But an equally important problem is what we call -- product
FAIR. NOT
YET ADVOCATED
liability -- the insurance businesses must pay to protect against FOR EVERY
CASE.
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
'SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:42 ;
The White House-
202 456 7739:# 8
6
Does our current product liability system protect the
consumer's interests. Not all D at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
DEVELOPING
companies get discouraged from even coming up with new products -
NOT AS
- for fear they'll get sued because the new products are safer
AS than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
THE INJURED PERSON
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
IN
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that the
THOSE
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
THIS
The money we spend on legal explosion is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 : 14:43 ;
The White House-
202 456 7739:# 9
7
We have got to do something about this.
We have ideas to speed the legal process ⑉⑉ and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
CONFUSION OF SEPARATE STATE LAWS
instead of the confusing 50 (enes) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
WANT
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
so what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. so in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:43 ;
The White House-
202 456 7739:#10
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and I we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese./
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult V every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but ^ risk is part of life, part of
America.
A CERTAIN AMOUNT of
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:43 ;
The White House-
202 456 7739;#11
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as I our ancestors
looked at their lives and said -- lets take a risk, take a chance
NEW
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
BOATS THAT BROUGHT
tried to win pain and suffering damages -- because the floor on THEM TO
WERE OVERCROWDED ?
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
need to recorging Bob Karter -he has been
the day we and honor honor
pushing P.L. Reform for years.
Provost/Bunton
American it A the are the they the the entire But because about than Awant to Waukesha Waukesha Presidential Sunday you american
American
other
Remarks
At
because
County Picnic
Wisconsin
Sept.
you
1992tim.
1992
consuder
&
to
yourler
talk
to
Tegal
need
to
Thank you Governor Tommy Thompson
our
Not
Today is Labor Day and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living
But I'm not going to do that today This is an uncertain
time for all our American workers Our economy is undergoing a
global transition -- and we are feeling the impact in our
axeriors discussion about
workplaces Legal reform our may seema little odd as a topic for a peanic But Alhoh
in homes.
You deserve more than talk from your political leaders you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. //
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. N We need to
banout
revolutionize our schools, fix our health care system, provide
the litery
incentives for saving and investment, strengthen the American
and and mole
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
the problem
we
(whose comments) are
of
it, ourstipall current system A a
But this afternoon, I want to have a serious discussion
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
Dweak
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony. "
Or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
and the cost of services you wort
to buy.
3
paid by your taxes;
These stories may make us chuckle, but they make me worry. You see
whether or not the sunt is won, it costs you money. An court time in the price
Worry that our nation is in the grips of a litigation explosion
- and it's impact is being felt everywhere.
yowpay for
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don We have fact, twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
Actually
represent yourself in court on the day the decision is reached.
What does this litigation explosion cost our economy? Well
exam
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.) Folks, that A
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of the football Spartans at East
Brookfield High school./ Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
Is
helmets. We will call that -- "progress. ")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?/
Personally, We are up against think two problems B believe really. that it The in. first That res is why the
shave
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
sent Congress
legiolation to
I've put forward a comprehensive reform of our Civil Justice
System, complete with specific proposals to solve disputes
85 At is
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
Your card fusture system - cold ourproduct hability laws. There are the
Let me focuson an especially important part of the crisin m
habitay
But an equally important problem is what we call -- product
laws that are supposed to allow people to be compensatedi.farm caused them
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
But. like so much of the rest spour assent wil justre system, product
caused
You might think we need that protection, and you're right
hability has been dev careenedont
but the system is out of control.
by defective
an important right and Aam all for it. People ought to
product. That's
sation when a product indefective and thyore hurtly it.
fair
Product habitity laws vary from state to state and the
rules have made t porible encouraged crazy lawouth and some
crazy awards. Because of this, the number of 6 lawsuits that and the costrof defending
them have exploded. a lot of lawyers fravolous knowing that at
Does our current product liability system protect the
Ao how drogthys affect your you and -
consumer's interests. Not all at all. Instead pay higher
prices for everything from medicine to step ladders, 8 and -Grd
there are a lot of good products we never All because their makers are afraid to
companies get discouraged from even coming up with new products -
put them on the market.y
for fear they 11 get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
the many ed- by jaries
in the pockets of lawyers, not regular people. Let
Well at least product liability laws keep us safer, right?
91 Let me gave yowa good example.
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
and, the cost of insurance has become prohibitive.
The company doesn't want to deal with our laws.
Let me gave you Our current another - product DPT. liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Jobs Today, we don't have the luxury Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
cheaper for companies the case they to pay ther own lawgers to defend through true.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:24 ;
The White House-
2024566218:# 1
SENT BY:Xerox Telecopier 7020 ; 8- 4-92 : 14:39 ;
The White House-
202 455 7739:# 2
Document No. 34865588
WHITE HOUSE STAFFING MEMORANDUM
P5:36
DATE: 9/4/92
ACTION/CONCURRENCE/COMMENT DUESY: TODAY, 9/4 5:00pml
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
SATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
office. Thank you.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:25 ;
The White House->
2024566218:# 2
SENT BY:Xerox Telecopier 7020 : 9- 4-92 ; 14:40 ;
The White House-
202 456 7739:# 3
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Pionic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
WHILE THOSE who PUT IN A HARD DAYS WORK CERTAINLY DESERVE OUR PRAISE,
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
TO A GLOBAL ECONOMY
global transition)-- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we/guarantee that we will I remain not net
BUILD UPON OUR STRENGTHS AND
just a military superpower -- the I an export superpower, and an
economic superpower./ /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
RESTRAIN
family, and give you relief from a government that spends too
much - and takes too much of your money. 11
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:25 ;
The White House->
2024566218;# 3
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 : 14:40 ;
The White House-
202 456 7739:# 4
2
But this afternoon, I want to have a serious discussion --
about another readblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions - piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Carfield, then work your way to the
other stuff up front):
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
S
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referes, who made $ controversial call at the busser of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. so what did the company do? They sued the
referee. sound absurd? The case ended up before the State
Supreme Court.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:25 ;
The White House->
20245662181# 4
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 i 14:41
:
The White House~
202 456 7739:# 5
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt averywhere.
Let me be clear - I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honer. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
EVEN IN 1988 WE WERE ACREADY GRADUATING MORE CAWMERS
those countries. And this year, more people will graduate from
THAN AVETORS COMPUTERE PROGRAMMERS AND
4aw school than from engineering, medicine and computer programs
ENGINEERING Ph.D.s COMBINEDO
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes & year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 parcent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Wall,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:26 ;
The White House->
2024566218:# 5
SENT BY:Xerox Telecopier 7020 ; 9- 4-82 ; 14:41 ;
The White House-
202 456 7739:# 6
IN LEGAL
SERVICES
THIS YEARO
CONSUMERS AND
4
PAID
UP TO
study, American companies, spend Ys200 billion dollars
I
will
lawyers:
Keep in mind, that doesn't even count the
lawyers on their COMPANY 100 payrolls, or the money they end up. paying-1 in
EETTING PAID AS
A RESULT OF LARGE DAMMAGE ANARDSO
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
TO COMPETE IN THE EMERGING
and legal fees -- than on training our workers Veew the now
ELOBAL economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll ... examples -- of how the legal
crisis has crept into every crevice of our lives.
FOOTBALL
THE
Ask Jack Perry, Coach of football Spartane at East
SPARTANS
Brookfield High school. 11 Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Therpe -- when people played football without
helmsts. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance The rest? They just pass the extra cost on
to you -- their customers.
BECAUSE THEY CAN'T AFFORD THE PREMIUMS
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:26 ;
The White House-
2024566218:# 6
SENT BY:Xerox Telecopier 7020 i 9- 4-92 : 14:42 ;
The White House-
202 456 7739:# 7
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hegan.
My grandkids tell me that in a movis last year -- Hulk Hogan
asks the bad guys if they are going to-beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As as nation -- isn't it time
that We sue each other less -- and care for each other more?//
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
ACTERNATIVE
teachers, doctors, coaches.
DISPUTE Resoun
CAN BE
CONDUCTED IN
I've put forward a comprehensive reform of our Civil Justice COURTHOUSES
System -- complete with specific proposals to solve disputes
Room
outside of the courthouse, to AND speed the legal process, to control
the use of expert witnesses, Y to control outrageous punitive
WE ARE TRYIN
damages. And I believe we should ADOPT a practice from our
THIS out IN
IN APPROPRIATE CASES
FEDERAL
friends in Britain -- and make the loser pay the winner's court
DIVERSITY CA
oner. WEH
fees. I have a feeling that would put a stop to people who just
Also ADVICAT
use the courts TO harasses I OTHERSO AB expensive equivalent of offer
WHERE servem
Refus.
hern
neen
AND cover
VERDICT sitou
OFFER WAS
But an equally important problem is what we call -- product
FAIR. NOT
Yer ADVOCAS
liability - the insurance businesses must pay to protect against FOR EVERY
damages caused by their products and services.
CASE.
You might think -- we need that protection, and you're right
-- but the system is out of control.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:27 ;
The White House-
2024566218:# 7
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 14:42
i
The White House-
202 456 7739:# 8
6
Does our current product liability system protect the
consumer's interests. Not all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
DEVELOPINE
companies get discouraged from even coming up with new products -
NOT AS
AS J the old ones.
- AS for fear they'll get sued because the new products
Well, what about people who are injured by a faulty product,
and get a court award - don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
THE INJURED PERSON
in the pockets of lawyers, not regular pusple.
Well, at least product liability laws keep us mafer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers, But we could still afford this
IN
mess - if we were back theY1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
THOSE
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
THIS
The money we spend on /legal explosion is money we don't
spend on training, aducation, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:28 ;
The White House-
20245662184# 8
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 i 14:43
:
The White House-
202 456 7739:# 9
7
We have got to do something about this.
We have ideas to speed the legal process - and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
CONFUSION OF
SEPARATE STATE CAWS
instead of the confusing so (ense) we have today. We want to put
& cap on punitive damages - which don't even exist outside the
WANT
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pre-
jobs. The experts agree with us.
so what's the problem? Why do ve still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
2
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled leafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost .
decade.
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:28 ;
The White House-
2024566218:# 9
SENT BY:Xerox Telecopier 7020 : 9- 4-92 ; 14:43 ;
The White House-
202 458 7739:#10
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up bafore the U.S. Senate.
It 9 persod the House and ve believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cleture sounds like something a doctor would give you to keep
a
wound shut. But it's not. It's the number of votes it takes
:
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the ireny - Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congrass know, the
American people are tired of reading about crasy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese.//
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
BY suing each other for every insult, every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but ^ risk is part of life, part of
America.
A CERTAIN Amount of
SENT BY:Xerox Telecopier 7020 ; 9- 4-92 ; 17:28 ;
The White House-
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The White House-
202 456 7739:#11
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, 2 as our ancestors
looked at their lives and said as lats take a risk, take a chance
NEW
on something cise.
I
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
BOATS THAT BROUGHT
tried to win pain and suffering damages -- because the floor on THEM TO
WERE OVERCROWDED ?
Ellis Island had hurt their backs? backer
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United states of America.
# # #
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
9-4-92
92 SEP 4 P7:15
NOTICE:
Enclosed are comments from staff members of the Office of
Management and Budget (OMB). Such comments do not necessarily
represent the official position of the Director of OMB or of the
Office of Management and Budget. If you wish to have the
Director's personal comments, please let me know -- and contact
me if you have any questions.
James UCM C. Mufr
Associate Director for
Legislative Reference
and Administration
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
DATE:
9/4/92
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5:00pm!!!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
office. Thank you.
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
RESPONSE:
See comments
PHILLIP D. BRADY
Assistant to the President
(R. Grady and T. Scully may respond
and Staff Secretary
Ext. 2702
at a later time)
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower / /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. // We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front)
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
(WYLIER
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
does
that so many people now sue accountants at the drop of a number,
this
make
that this year four out of ten accountants in Wisconsin are going
sense?
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more? /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
type (WYLER
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
WHERE
6116
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
[current ][strict]
WYLER 6116)
recommend
[always]
qualifier
a
Well, at least product liability laws a keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
that (WYLER 6116)
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep
a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese./
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
DATE:
9/4/92
92 SEP 4 P4: 56
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5:00pm!!!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
office. Thank you.
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. / /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
Or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more? //
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
and it only benefits lawyers. But we could still almost afford this
Our mostly current product liability system is expensive, unsafe,
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our overkill competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
want
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices
the only
thing that gathers more attention than a TV camera
is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes
to stop debate in the U.S. Congress. (As you can imagine,
so you wor 4
getting Congress to stop talking requires a little effort.
be surprisa
We're not sure we have the votes for cloture. And here's
if I tell
the irony -- Congress may be able to stop the greatest legal you it takes
reform in a decade -- by using a legal loophole.
more votes to
I need your help. I need a labor day present for the get Them to
American economy, and for the jobs of the future.
stop talking
Then it
I need you to get on the phone and let Congress know, the
does to
American people are tired of reading about crazy lawsuits. Tired pass
of high prices. Tired of unsafe products. Most of all, we're
This bill.
tired of loosing jobs to the Europeans and the Japanese. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
Bobingus
Cand Please over OPD
To
on 9/4/92
Provost/Bunton
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
(Acknowledgements and local color)
Today is Labor Day -- and it is traditional to give a
flowery oration -- replete with praise of all those who punch a
clock for a living.
But I'm not going to do this today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. //
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. // We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much --- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony.'
the
or maybe some of you remember the story about basketball
t
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
BC
even in 1988 we were alr
those countries. And supply is only increasing. This year, more
people will graduate from law lawyers school than from engineering,
than medicine doctors and computer programs mers combined, and engineering PHDS
graduating
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal chart courts?) /maybe has litigation doubled. explosion Today, the chart B/C
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
BC
looking at that question. According to a soon to be released
consumers and
[BC 4 actual btw 163-2018]
study, American companies will spend $200 billion dollars on direct
in legal services
in 1992
costs to lawyers. Keep in mind, up that to doesn't even count the this year.
lawyers on their own payrolls, or the money the then end up paying in keep in
mind that
court settlements.
doesn't even
($200 billion sounds like a lot of money -- and believe me, count
it is. American businesses now spend more on insurance, lawyers
the lawyers
on company
and legal fees -- than on training our workers for the new
payrolls
economy.)
or the money
they end up
Now, all these numbers are and stories are impressive, but
getting paid
you might ask -- what does it mean to me? If you look around
as a result of
Waukesha and Wisconsin, you'll see examples -- of how the legal
large damage
awards.
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for those noted commentators on the
American scene. I'm not talking about Phil Donahue or Ted Koppel.
I'm talking about Hulk Hogan.
(My grandkids tell me that in a movie last year -- Hulk
Hogan asks the bad guys if they are going to beat him up. And
the bad guys say -- "No, this is the nineties. We are going to
sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?//
We are up against -- two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve dispute
1,
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses pay to protect against
damages caused by their products and services.
6
You might think -- we need that protection, and you're right
-- but the system is out of control.
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But
understand, more than half of all jury awards in product
liability cases, end up in the pockets of lawyers, not of regular
people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a built
in child safety seat. You can't buy it here in the U.S. The
company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if it were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses, and especially our small businesses,
are staggering under a weight our competitors don't even feel.
7
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
We have got to do something about this. Again, I have a
comprehensive plan for reform.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability laws
instead of the confusing 50 ones we have today. And we want to
put a cap on punitive damages -- which don't even exist outside
the U.S. and Great Britain. We won't to make it tougher for
people to sue everyone involved with a product for all the
damages. We want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem. In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio is about the only better training you
can find. ) ? huh
Like my opponent Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
8
That's why product liability reform has been blocked. Not
just for my three years, but for almost a decade.
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's the passed the House -- and we believe we have the votes --
to pass the Senate.
But there's a catch -- and it's something called "cloture."
Now cloture sounds like something a doctor would give you to keep
a wound shut. But it's not. It's the number of votes it takes -
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking takes a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole. Which is like
saying that (
.)
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of less safe products. Tired of loosing
jobs to the Europeans and the Japanese. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
Suin
By sewing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
9
Yes, we should not be reckless, but risk is part of life, part of
America.
Think about it. As a nation we bring together people of
how
every color and every creed -- but all of us the same background
in this respect. At some time, either we or our ancestors looked
lives
at their life and said -- lets take a risk, take a chance on
something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
Wiscomsin
# # #
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
DATE:
9/4/92
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5:00pm! !!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOS
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. you 4, with a copy to this
office. Thank you.
RESPONSE:
Please see pass posist9
Thank
if
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. / /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. // We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
Or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider
a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
combined.
those countries And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more? / /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
The American Tort Reform Association says that a
hidden tax -- they call it a "tort tax" -- has
increased the cost of items from step ladders to
Add
football helmets by 25 to 50 percent or more.
33%
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products
-
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
Isa't this Wanhesha,
Wisconsin?
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
92 SEP 4 P6: 19
DATE:
9/4/92
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5:00pm!!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
office. Thank you.
RESPONSE: See Commerce
will Paul Korfonta Assistant
comments. Justice
PHILLIP D. BRADY
directly to speephwriting. opages
to the President
and Staff Secretary
Ext. 2702
If
VFVIR 6
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower./ /
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. 11
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say - "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. so what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
+
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
VFVI# V
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?/ /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment ⑉⑉ an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
biggest beneficiaries are lawyers.
and itsonly only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
VPV 0
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
(DOC)
And we want to have one national product liability law --
Delete
instead of the confusing 50 (ones) we have today. We want to put
not
a cap on punitive damages -- which don't even exist outside the
want
U.S. and Great Britain. We to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
(voc)
Product liability reform will be up before the U.S. Senate.
No
ion
It's passed the House -- and we believe we have the votas to
actionse yet.
pass the Senate
in
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
senate.
to stop debate in the U.S. Congress (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese.//
What troubles me so about our litigation crisis, is that it
is SO at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury - -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
Provost/Bunton
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
1 to give a
who punch a clock
THE WHITE HOUSE
WASHINGTON
is an uncertain
92 SEP 4 P5: 01
is undergoing a
Russel George
act in our
Nat. Service
ical leaders, you
stion before
p.le
ill remain not
Not at all.
erpower, and an
Not all at all.
bal economic
.11 We need to
- not safer
system, provide
in the American
hat spends too
p.9
Michigan
WISCONSIN
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony.
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
Or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?//
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability - the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese./
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
Provost/Bunton
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. //
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War.// We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony.
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales, Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. 11 Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more?//
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
6
Does our current product liability system protect the
consumer's interests. Not all at all. Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese. //
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #
6714
Document No. 348655ss
WHITE HOUSE STAFFING MEMORANDUM
DATE:
9/4/92
92 SEP 8 48.26
ACTION/CONCURRENCE/COMMENT DUE BY: TODAY, 9/4 5:00pm!!!
PRESIDENTIAL REMARKS: WAUKESHA COUNTY PICNIC
SUBJECT:
WAUKESHA, WISCONSIN - SUNDAY, 9/6
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
GRAY
KAUFMAN
HOLIDAY
MCGROARTY
HORNER
BOSKIN
REMARKS:
Please forward your comments directly to Dan McGroarty, Rm. 122, x2930,
no later than 5:00 p.m., TODAY, FRI. SEPT. 4, with a copy to this
office. Thank you.
RESPONSE: TO: DAN MCGROARTY
September 4, 1992
The NSC staff concurs as amended with the draft
PHILLIP D. BRADY
presidential remarks.
John Brent Scowcroft
Assistant to the President
and Staff Secretary
Ext. 2702
CC: Phillip D. Brady
Provost/Bunton
2 SEP 4 P2: 18
Presidential Remarks
Waukesha County Picnic
Waukesha Wisconsin
Sunday, Sept. 6, 1992
Thank you Governor Tommy Thompson.
Today is Labor Day -- and it is traditional to give a
flowery oration -- full of praise of all those who punch a clock
for a living.
But I'm not going to do that today. This is an uncertain
time for all our American workers. Our economy is undergoing a
global transition -- and we are feeling the impact in our
workplaces -- in our homes.
You deserve more than talk from your political leaders, you
need answers. Answers to the most pressing question before
America today -- how can we guarantee that we will remain not
just a military superpower -- but an export superpower, and an
economic superpower. //
I have an agenda for action to win the global economic
competition -- the same way we won the Cold War. / / We need to
revolutionize our schools, fix our health care system, provide
incentives for saving and investment, strengthen the American
family, and give you relief from a government that spends too
much -- and takes too much of your money. //
2
But this afternoon, I want to have a serious discussion --
about another roadblock that must be cleared from the path of
America's economic progress.
This roadblock is made not of granite and stone, but paper -
-legal memos and briefs and decisions -- piled so high that they
block our efforts to create new jobs for you and our kids.
Now, if you're like me, one of the first things you do every
morning is sit down and read the newspaper. (When you work in
politics, you start with Garfield, then work your way to the
other stuff up front).
Like you -- I'll occasionally see a story that makes me stop
and say -- "huh?"
Like the woman who was on an Eastern Airline flight, when
the pilot came over the intercom, warning passengers to prepare
for a possible crash landing. The pilot landed the jet safely,
but the woman sued the airlines for millions of dollars anyway.
She claimed the mere warning of a crash had caused her -- and I
quote -- "psychic agony."
or maybe some of you remember the story about the basketball
referee, who made a controversial call at the buzzer of a Purdue-
Iowa basketball game. Purdue won the game, and an Iowa souvenir
company was suddenly left with victory T-shirts that weren't in
all that high demand. So what did the company do? They sued the
referee. Sound absurd? The case ended up before the State
Supreme Court.
3
These stories may make us chuckle, but they make me worry.
Worry that our nation is in the grips of a litigation explosion -
- and it's impact is being felt everywhere.
Let me be clear -- I have nothing against lawyers. They are
an essential part of our society -- and the majority of legal
professionals work with integrity and honor. But lets consider a
few facts.
The number of lawyers has almost doubled in the past 20
years. Would you believe the U.S. has more lawyers than West
Germany, Canada, England, Wales Japan, Switzerland and France
combined? Well, we don't. We have twice as many lawyers as all
those countries. And this year, more people will graduate from
law school than from engineering, medicine and computer programs
combined.
What do all these lawyers do? Lots of things. But
primarily, they sue. In the past 20 years, the number of
lawsuits (filed in federal courts?) has doubled. Today, the
average case takes a year to be resolved -- and in the past year
alone -- the number of cases that were pending for 3 years,
increased by 15 percent.
(Think about what that means. You can file a suit, and have
time to enroll in law school, study three years, graduate, and
represent yourself in court on the day the decision is reached.)
What does this litigation explosion cost our economy? Well,
the National Association of Manufacturers has just finished
looking at that question. According to a soon to be released
4
study, American companies spend $200 billion dollars on direct
costs to lawyers. Keep in mind, that doesn't even count the
lawyers on their own payrolls, or the money they end up paying in
court settlements.
($200 billion sounds like a lot of money -- and believe me,
it is. American businesses now spend more on insurance, lawyers
and legal fees -- than on training our workers for the new
economy.)
Now, all these numbers and stories are impressive, but you
might ask -- what does it mean to me? If you look around
Waukesha and Wisconsin, you'll see examples -- of how the legal
crisis has crept into every crevice of our lives.
Ask Jack Perry, Coach of football Spartans -- at East
Brookfield High school. // Today, I'm told Jack and his team pay
about $150 bucks for every football helmet -- ten years ago they
paid about a third of that. Why the price increase? Because 18
companies in 18 years have stopped selling helmets, because they
can't afford the insurance. (Before this is over, we may go back
to the days of Jim Thorpe -- when people played football without
helmets. We will call that -- "progress.")
or ask Mike Yaktus of Madison. Mike is a CPA, and he says
that so many people now sue accountants at the drop of a number,
that this year four out of ten accountants in Wisconsin are going
without insurance. The rest? They just pass the extra cost on
to you -- their customers.
5
You know the legal crisis has touched everyone -- when it
becomes a topic of discussion for one of the noted commentators
on the American scene. I'm not talking about Mike Royko or Ted
Koppel. I'm talking about Hulk Hogan.
My grandkids tell me that in a movie last year -- Hulk Hogan
asks the bad guys if they are going to beat him up. And the bad
guys say -- "No, this is the nineties. We are going to sue you!"
What is America coming to? As a nation -- isn't it time
that we sue each other less -- and care for each other more? / /
We are up against two problems really. The first is the
individual legal crisis -- crazy lawsuits against volunteers,
teachers, doctors, coaches.
I've put forward a comprehensive reform of our Civil Justice
System -- complete with specific proposals to solve disputes
outside of the courthouse, to speed the legal process, to control
the use of expert witnesses, to control outrageous punitive
damages. And I believe we should copy a practice from our
friends in Britain -- and make the loser pay the winner's court
fees. I have a feeling that would put a stop to people who just
use the courts as harassment -- an expensive equivalent of a car
horn.
But an equally important problem is what we call -- product
liability -- the insurance businesses must pay to protect against
damages caused by their products and services.
You might think -- we need that protection, and you're right
-- but the system is out of control.
6
Does our current product liability system protect the
consumer's interests. Not all at all Instead, we pay higher
prices for everything from medicine to step ladders -- and
companies get discouraged from even coming up with new products -
- for fear they'll get sued because the new products are safer
than the old ones.
Well, what about people who are injured by a faulty product,
and get a court award -- don't they benefit? Some do. But, more
than half of all jury awards in product liability cases, ends up
in the pockets of lawyers, not regular people.
Well, at least product liability laws keep us safer, right?
Again, the answer is no. In Europe, Volvo offers parents a
built-in child safety seat. You can't buy it here in the U.S.
The company doesn't want to deal with our laws.
Our current product liability system is expensive, unsafe,
and it only benefits lawyers. But we could still afford this
mess -- if we were back the 1950's -- and our workers and
companies faced no foreign competition.
Today, we don't have the luxury. Liability costs are 15
times greater than that Bose in Japan, and 20 times greater than that
in Europe. Our businesses -- especially our small businesses --
are staggering under a weight our competitors don't even carry.
The money we spend on legal explosion, is money we don't
spend on training, education, research, investment. It means the
difference between no jobs for our kids -- and good jobs for our
kids.
7
We have got to do something about this.
We have ideas to speed the legal process -- and settle more
cases out of court -- which will help everyone.
And we want to have one national product liability law --
instead of the confusing 50 (ones) we have today. We want to put
a cap on punitive damages -- which don't even exist outside the
U.S. and Great Britain. We won't to make it tougher for people
to sue everyone involved with a product for all the damages. We
want to bring some rationality to the system.
The plan is pro-consumer, pro-business, pro-safety, and pro-
jobs. The experts agree with us.
So what's the problem? Why do we still face this crisis?
?
In a term, the Gridlock Congress.
I know you are sick of the blame-game in Washington, but
keep this in mind. Many members of Congress were once trial
lawyers. (Being a radio D.J. is about the only better training
you can find.)
Like my opponent, Governor Clinton -- many members of
Congress get their campaign funds from trial lawyer
organizations. So in many Congressional offices -- the only
thing that gathers more attention than a TV camera -- is a lawyer
in tasselled loafers.
That's why product liability reform has been blocked. Not
just for my three and a half years in office, but for almost a
decade.
8
But this week, we have a chance -- to make our workers more
competitive with the Japanese and the Germans.
Product liability reform will be up before the U.S. Senate.
It's passed the House -- and we believe we have the votes -- to
pass the Senate.
But there's a catch -- something called "cloture." Now
cloture sounds like something a doctor would give you to keep a
wound shut. But it's not. It's the number of votes it takes --
to stop debate in the U.S. Congress. (As you can imagine,
getting Congress to stop talking requires a little effort.)
We're not sure we have the votes for cloture. And here's
the irony -- Congress may be able to stop the greatest legal
reform in a decade -- by using a legal loophole.
I need your help. I need a labor day present for the
American economy, and for the jobs of the future.
I need you to get on the phone and let Congress know, the
American people are tired of reading about crazy lawsuits. Tired
of high prices. Tired of unsafe products. Most of all, we're
tired of loosing jobs to the Europeans and the Japanese. / /
What troubles me so about our litigation crisis, is that it
is so at odds with the true nature of America.
By suing each other for every insult ) every incrimination,
every injury -- we naively attempt to rid our world of risk.
Yes, we should not be reckless, but risk is part of life, part of
America.
9
Think about it. As a nation we bring together people of
every color and every creed -- but all of us have the same
background in this respect. At some time, as our ancestors
looked at their lives and said -- lets take a risk, take a chance
on something else.
But what would have happened -- if Columbus had sued the
sailmakers of the Santa Maria? What if immigrants in 1903, had
tried to win pain and suffering damages -- because the floor on
Ellis Island had hurt their backs?
We cannot rid our world of risk, nor do we want to. Today,
I appeal to the common sense of the American people -- to take a
stand for America's values, and give our workers a chance to
compete in the world economy.
Thank you for listening. God bless Michigan. God Bless the
United States of America.
# # #