Torts Crises and Soup Sandwiches – Episode 2

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This blog is the companion to my Podcast: TersonName>orts, Crises and Soup Sandwiches, which seeks to amplify the continuing discussion about the absurdity and frivolity of this nation's lawsuits.  Beyond amplification, the Podcast and Blog provides insight to help leaders find their voice and navigate the complexities of issue and crisis management with conviction and meaningful action.  
 

Regular updates will follow on the first and third Mondays beginning in January 2007.  Every show will feature guest commentary and listener feedback.  In fact, the fastest way for listeners to provide opinions and comment is to call 1-704.248.6171 and leave a message. Listener feedback will be played at the end of the following show.

In this segment, I am fortunate to have the American Justice Partnership's permission to air an interview between ABC's John Stossel and the AJP chairman Steve Hantler.  In this interview, Stossel and Hantler discuss the real cost of litigation on business' balance sheet. 

Show Notes: 

0:00 Introduction
3:51 Sour Tort
5:05 Stossel / Hantler interview
17:54 Other news in Tort Reform
21:34  Crisis Crunch

News and Notes
Directorship magazine, to which 15,000 corporate directors subscribe, is publishing a series of articles about the need to end lawsuit abuse and achieve legal reform at the state level.  The editors of Directorship believe that corporate directors should know more about the huge costs of lawsuit abuse and the trial bar's relentless effort to game the legal system to win huge payouts from companies. Some economists believe that the all-inclusive cost of the tort system is actually much higher than the $300 billion cost reported by an industry study. The first article in this series, an interview featuring Bernie Marcus, the co-founder of Home Depot, and Steve Hantler, AJP Chairman, is published in this month's edition of Directorship. Source: The American Justice Partnership

The American Tort Reform Association recently released its 2006 Judicial Hellholes list, which includes West Virginia, South Florida, Southeast Texas and three Illinois counties. The report also cites Los Angeles, San Francisco, Philadelphia, Rhode Island, Delaware, New Jersey and several other jurisdictions for their “unfair and unbalanced” civil courts.

Finally, here is a special report from the American Justice Partnership on the Georgia Supreme Court's Nov. 20 asbestos ruling. 

Earlier this week, CNBC’s Maria Bartiromo wrote in NYSE Magazine that chief executive officers can get a fair shake in the media.  But they have to show up to get that fair shake.  In the article, Bartiromo recommends that CEOs spend time with the reporter before the story to educate the reporter about the business.  She adds that CEOs also should recognize that the reporters will interview others for the same story.

I have a perfect example to share from May 2005.  An investigative reporter with KUSA 9 News in Denver, Colorado, conducted a hidden camera investigation into two dealerships’ alleged practices of capitalizing on the language barrier.  Hidden camera footage shows an employee at one dealership warning the hidden-camera toting consumer to ensure that she’s signing a purchase agreement and not a lease agreement. Too many think they’re buying, and they end up leasing, the employee says. In the segment at the link above, CEO Kent Stevinson, spoke convincingly and honestly.  In May 2006, one year after his crisis scenario went on air, I interviewed Mr. Stevinson for an article that I wrote in IABC’s Communication World magazine. 
 

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