U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director

TALKING POINTS: PRODUCT LIABILITY REFORM ACT

  1. The product liability reform act is a good first step towards overhauling an unfair and inefficient liability system -- and its passage will benefit American consumers and entrepreneurs.

  2. While it in some respects does not go as far as the bill supported by most Republicans and vetoed by the President in 1996, it does provide valuable protection to small businesses from crippling legal fees and harassment suits.

  3. Small businesses (entities with 25 or fewer full-time employees and less than $5 million in annual revenue) will benefit from a $250,000 cap on punitive damages.

  4. For years, the unpredictable patchwork of State laws has had a chilling effect on new products entering the market. The reform measure assures a reversal of this plight by providing much-needed predictability -- and, in so doing, the bill will help to strengthen the competitiveness of U.S. companies in the global marketplace.

  5. Predictability is provided by the: "product seller" and renter/lessor provisions; statute of limitation and statute of repose provisions; and punitive damage standard.

  6. Consumers rather than trial lawyers will benefit from this legislation.

  7. The current system favors lawyers -- who receive more than half of the money spent in product liability actions.

  8. This legislation ensures that consumers will benefit from lower product costs -- through the reduction of exorbitant, wasteful and unnecessary legal costs.

  9. Just like with the tobacco legislation, the trial lawyers oppose any caps on their legal fees. It's easy to understand why: they are making millions off the current system, so any reform -- even one so narrowly crafted -- would hit their pocketbooks.

  10. The bill will send a message to the Association of Trial Lawyers of America which has been conducting a successful nationwide lobbying effort to nullify state tort reform legislation.

  11. The Product Liability Reform Act will help create new jobs by reducing the liability burden on businesses.

  12. The General Aircraft Revitalization Act of 1994 -- which created an 18-year statue of repose for piston-driven aircraft, similar to the statute of repose in this legislation -- has resulted in the creation of more than 9,000 new jobs in the piston-engine aircraft manufacturing industry, and the production of the safest planes in general aviation history.

    13. Staff Contact: Candi Wolff, 224-2946
    Legislative Notice

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