Monday, March 22, 2010

Meanwhile, KY's legal climate worsens

Tort reform—comprehensive changes to lessen the practice of "defensive medicine"—is nowhere to be found in the healthcare reform package passed by the U.S. House yesterday. There is no doubt that defensive medicine is a driver of healthcare costs. Too add insult to injury, there are no malpractice caps in Kentucky, which means physicians in the state pay very high malpractice insurance premiums.

Today, the U.S. Chamber's Institute for Legal Reform issued its annual state-by-state rating of how reasonable and balanced the states' tort liability systems are perceived to be by U.S. business. It found that Kentucky has fallen from the 29th worst to 40th. This is not good news; it's not good for attracting business and industry to Kentucky, and it's not positive for businesses to expand operations.

What are the numbers? According to the Kentucky Administrative Office of the Courts, the number of civil lawsuits filed in the state’s circuit courts, which decide civil cases seeking over $4,000, surged from 39,439 in 2002 to 63,958 in 2009, a jump of 60%.2. Kentucky’s district courts, which hear civil cases seeking less than $4,000 and small claims, experienced a similar surge of civil suits from 97,871 in 2002 to 138,982 in 2009, a 42% rise.

Meanwhile, Indiana is ranked much better at 5th on the list. Tennessee, to our south, is ranked 19th. See the whole report here:
http://www.instituteforlegalreform.com/lawsuit-climate.html

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