Commentary : Consumers Pay Price for Lawsuits

Orange County has many distinctions of which we can be proud, but recently, we’ve topped one list that, quite frankly, we can do without.

Orange County now leads the state in the rate of auto accident lawsuits filed--jumping ahead of Los Angeles and San Francisco counties for the first time. In 1984-85, for every 100,000 people living in Orange County, almost 354 lawsuits related to auto accidents were filed. If the trend of more litigation continues, the ultimate prize for this distinction may be higher insurance rates.

“I’ll sue!” Those words, once the last resort of a frustrated or injured citizen, have become commonplace in today’s lawsuit-conscious society. More and more Americans have turned to the courts to resolve differences, settle claims or seek windfall judgments.

So invasive has the flight to the courts been that one in 15 citizens decided to file a civil lawsuit last year. But maybe it’s time for the public to rethink that permissive attitude, for ultimately it’s consumers who pay the price--through higher insurance rates, higher taxes and higher prices for goods and services.

This permissive attitude has affected not only Orange County but the nation as a whole.

Take the shortage of some vaccines, for instance. Consumers pay a heavy price for that one. Lederle Laboratories makes a vaccine used to immunize millions of children against diptheria, tetanus and whooping cough. Because some children allegedly have had reactions to the vaccine, Lederle has found itself fighting more than 100 lawsuits seeking nearly $3 billion in damages.

The cost of those lawsuits to the consuming public: The price of the vaccine has jumped 29%, according to American Medical News. A Lederle representative said the price has risen since 1982 from $15 to $64 for a 15-dose vial. And the nation’s supply of vaccines has been threatened because several producers have pulled out of the market, citing increasing lawsuits and high jury awards.

Municipal government services have been affected. Consumers are losing community services because expiring liability insurance means closed libraries and swimming pools, reduced police and fire protection, loss of government leaders. Taxes will rise to cover increased insurance premiums.

The medical profession is another victim of this permissive attitude. The American Medical Assn. reports that nearly one in five physicians will be sued this year (one in 35 were sued in 1978). Their fees to consumers will rise. Some 12% of the nation’s obstetricians stopped delivering babies in 1984, forcing expectant mothers to scout nearby cities for doctors willing to take them as patients.

Newspapers have become subject to increasing libel suits. In a congressional subcommittee hearing on changing libel laws, two legislators complained that libel suits lead to “intrusive” examination of newspapers’ editorial processes, which sometimes discourages investigative reporting.

Volunteerism has been affected. Little League coaches, business directors and ambulance workers are pulling away from the threat of lawsuits. Guess what? The consumers lose again.

The effect of the lawsuit crisis will be felt throughout Orange County and the nation. The public is footing the bill. Solutions to these pressing problems can be found only when consumers realize the enormous loss to themselves in goods and services.

A step in the right direction was Proposition 51 on last June’s ballot, when California voters overwhelmingly voted to limit the “deep pocket” doctrine.

Other changes are needed in the civil justice system to curb steep increases in million-dollar jury awards, restrict punitive damages, and limit pain and suffering awards.

A lot is at stake for consumers. One solution would be to curb the “psychology of entitlement” in which some people file lawsuits for every perceived misfortune, intent on being compensated, without regard to who is really responsible.