Why Texas Needs True Loser Pay Litigation
The case for true loser pay litigation is clear, unequivocal and compelling.
Everyone has heard of the famous “McDonald’s hot coffee case” and even though most are not aware of the real facts surrounding that case, it stands for the proposition in most people’s minds that people get money for frivolous lawsuits.
On top of the seemingly unlimited press given to “tort reform” advocates most people feel that our court system is burdened by frivolous lawsuits and less than meritorious claims.
In Texas, there is another sad truth to the tort reform story.
The reality of Texas’s civil justice system after tort reform is that innocent victims with legitimate and compelling claims against wrongdoers or their own insurance company are being penalized and more and more often, forced to hire lawyers and file expensive lawsuits just to get any part of fairness.
Why is that the case? Because tort reform has given the insurance companies a green light to force expensive litigation on Texas families by mounting frivolous defenses without adverse consequences to the insurance company. Too most now have “employee” attorneys defend the case in an effort to reduce their litigation costs while at the same time running up the cost to the victim.
The frivolous defense that is used each and every day in Texas by many insurers has the effect of radically increasing costs to Texas families just to obtain basic, fundamental fairness.
It costs you 15,000 to replace your car with another just like it but the insurance company says 11,500. Don’t like it- sue us!
Claims that should have been fairly resolved when made are now forced intolitigation or the Texas consumer takes the loss. Why- because while Texas regulates victims in their claims- it gives insurance companies a green light in forcing expensive litigation on Texas families.
Some large insurance companies have taken the position that they would rather pay for frivolous defenses to run up the cost for legitimate claims (and thus deter other legitimate claims) than enter into reasonable negotiations or settlement of a meritorious claim with a Texas family with out an attorney.
The effects are that drunk drivers, criminals and irresponsible parties are,thorough their insurers, mounting frivolous defenses, making more and more lawsuits necessary. Texas after tort reform has a frivolous lawsuit problem and it is frivolous defenses by insurance companies.
Texas needs true loser pay lawsuits.
If a victim takes an unreasonable or frivolous position and loses the case then they should be required to pay the litigation expenses of the defendant. On the other hand, if your insurance company takes an unreasonable position with you and you get more at trial than you asked them for-and they refused to pay-they should have to pay your litigation expenses that they made you incur by denying the claim.
In effect, with real loser pay litigation, anyone taking a frivolous position will be penalized and the meritorious claims or defenses will be recognized and our courts will not be clogged with cases that should have been resolved without litigation or should not have been brought at all.
True loser pay lawsuits will hold everyone accountable and reduce frivolous claims and defenses and will benefit Texas families and our community.
Greg Baumgartner is a Houston personal injury lawyer and the founder of the Baumgartner law firm, which is dedicated to helping injury victims seek civil justice. For a free no obligation consultation with a personal injury lawyer in Houston call the Baumgartner firm.
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