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Common Good Files Petitions in 12 States to Increase Victims' Share of 'Early Offer' Settlements May 6, 2003 A national coalition led by Common Good announced on May 6 that it filed legal
petitions in 12 State Supreme Courts proposing to change the rules governing the
contingency fees charged by lawyers in "early offer" settlements in personal injury
cases. The proposed change would reduce the fees received by lawyers in these
situations, reduce court congestion, and increase the incentive to settle rather
than litigate certain liability claims. Most importantly, the change will increase
the settlement proceeds going directly to accident victims.
Click here to read the full press release.
The proposal is different from tort reform proposals. Instead of limiting the
injured persons' ability to sue, it will dramatically reduce transaction costs,
while maintaining the advantages of the contingency fee system. It will thereby
benefit the injured persons, defendants, and the public at large, while still
rewarding the attorneys appropriately for their services. The proposal's benefits
will include quicker, less costly recovery for plaintiffs, more settlements resulting
in lower defense costs, and reduced burdens on the courts.
Click here to download a sample petition.
"The American legal system is supposed to serve the public, not the lawyers,"
said Philip K. Howard, Chair of Common Good. "Where there is little or no litigation
risk, far more of the proceeds should go to the victim, not provide a windfall
for lawyers."
Click here to view a list of local petitioners.
At a luncheon sponsored by Committee for Economic Development, Common Good and
Hudson Institute on May 6, 2003, the coalition announced the filings. Speakers
at the luncheon included Derek C. Bok, former Dean of Harvard Law School and former
President of Harvard University, Philip K. Howard Chairman of Common Good, Charles
E.M. Kolb, President Committee for Economic Development (CED), Michael J. Horowitz,
Director of Hudson Institute's Project for Civil Justic Reform and Project for
International Religious Liberty, Jeffrey O'Connell, the Samuel H. McCoy II Professor
of Law at the University of Virginia School of Law, and Jeffrey A. Rosen, partner
at Kirkland & Ellis.
Click here to read speaker bios.
From left to right: Charlie Kolb, Jeffrey O'Connell, Michael Horowitz, Philip
K. Howard, Jeffrey Rosen and Derek Bok
This proposed early offer system has been developed by, among others, Professor
Jeffrey O'Connell, Lester Brickman of Cardozo Law School and Michael Horowitz,
Senior Fellow at Hudson Institute. Partners Jeff Rosen and Gerald Masoudi of Kirkland
& Ellis provided substantial pro bono assistance in drafting the petitions.
A number of official panels and commissions have recommended adoption of a variant
of the early offers reform, including the recent recommendations by the Institutes
of Medicine and CED.
Click here to read the CED report, "Breaking the Litigation Habit."
In addition, a letter supporting this action is being sent to each of the 12
State Supreme Courts signed by leading legal scholars and reform advocates, including,
among others: Jeffrey O'Connell; Derek Bok, former President of Harvard University;
Mary Ann Glendon, Professor, Harvard Law School; and Charles E.M. Kolb, President,
Committee forEconomic Development.
Click here to read the supporter letter.
Click here to read a transcript of the CED meeting. | |
