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In this episode, The Home Depot co-founder Bernie Marcus discusses the cost of litigation among American businesses and the impact of that cost on the consumer. In Crisis Crunch, consider the celebrities currently earning ink and air time, and look closer at how they are handling their time in the spotlight. And submit a Looney Lawsuit filed in 2007 for the chance to win $500.
3:30
Tart Tort - There are two types of torts. There is the tort spelled with a silent e that is an elaborate sweet cake. This is not a show for confections. Here, we are discussing the other tort, which is a French word meaning wrong. Our civil justice system defines a tort as wrongful conduct by one actor that results in injury against another. A tort has been committed when someone has suffered injury caused by the failure of another person or company to exercise a required duty of care.
Torts are not altogether bad, but there are ample facts that suggest our civil justice system is out of control. Consider, for instance, that of the 193 nations in the world, America is the only one in which it seems prudent to warn drive-through customers that coffee is hot.
And to further illustrate how broken our civil justice system really is, listen to the cast for this Leadership Roundtable segment in which Todd Young interviews The Home Depot co-founder Bernie Marcus about the importance of CEO involvement in state level legal reform efforts.
It’s clear that as consumers, shareholders and employees – we all have been affected in some manner by the cost of litigation. And I would like to hear from listeners who have been victims of our civil justice system.
Are you a doctor who moved or changed your practice due to the cost of litigation or insurance? Are you with a manufacturer that abandoned a product due to the risk of legal exposure? Send your feedback by phone at 704.248.6171 ext. 4 or via e-mail at feedback@tortscrisesandsoupsandwiches.com
19:30 - Lately, it seems that celebrities are the ones who are finding themselves embroiled in crisis management and crisis communication. While the product is quite different from other businesses, I think there are some parallels worth considering.
For example, third party endorsement remains the key ingredient in positive public relations. But Michael Richards, Seinfeld’s Kramer inspiration, found third party opportunistic endorsement in airing his apology with the Reverands Jesse Jackson and Al Sharpton. And since conflict is one of the 13 news hooks, Rosie and The Donald are finding themselves in a never-ending news cycle.
Back to Richards, who as you know let fly with a few racist slurs after being heckled on stage in December. To apologize and move on, he sought the help of Jackson and Sharpton.
Third party endorsement – getting someone else to speak on your behalf – is a powerful tool. And is why a positive article in a respected newspaper, authored by an objective journalist, is considered to be of greater value than a self-serving advertisement.
As part of our human psyche, we need to hear from those we trust that a person, company or product mirrors what the person, company or product claims to be.
Mr. Richards chose to seek his endorsement from two lightening rods who are opportunists in their own right. Reverends Jackson and Sharpton stand ready to seize on any racial inferno for their own self-promotion. And they did – so much so that the two aggrieved hecklers’ attorney demanded a similar apology and a settlement for her clients.
There is a point in all of this for leaders who find themselves embroiled in a crisis scenario. Third party endorsement frequently is a proper remedy for various tribulations, but be careful where you seek that endorsement.
In Mr. Richards’ case, the longer he parades about apologizing and seeking supporters, the worse it will be for him. The best advice is to focus principally on action and get out of the news cycle by lying low.
While the Trump vs. O’Donnel kafuffle certainly has been entertaining and is arguably good for their TV ratings, there is another point for leaders who find themselves falling to the temptation and belaboring their disgust for another person or someone’s ideas.
Dragging Barbara Walters into the ring, Trump says that the she advised him: “Donald, never get into the mud with pigs.”
Leaving the obvious name-calling aside, this is actually great advice. Keep to the high-road. In fact, you can zealously represent your position on an issue without falling into a tailspin of name-calling.
Avoiding conflict and sticking to the root issue also contributes to a shorter news cycle.
23:10 - Here’s your chance to win up to $500.
In episode 3, I discussed the lawsuit that I found at Walter Olsen's blog overlawyered.com. Last year, Mike McPhee with the Denver Post reported that an elderly couple sued neighbor Shannon Peterson for taking 5 a.m. baths, complaining that she bathes too early in the morning, disrupting their sleep and the quiet enjoyment of their condominium.
That Looney Lawsuit and the California Attorney General’s suit against six automobile manufacturers for contributing to that state’s greenhouse gas emissions inspired the 2007 Looney Lawsuit Award.
So, Torts Crises and Soup Sandwiches is awarding cash prizes to the top three "Looniest Lawsuits in 2007." If you have read about a Loony Lawsuit that deserves special recognition, please send either a copy of the actual filing or the newspaper page where the suit was reported, along with your name and address to: TC&SS Loony Lawsuit Contest, PO Box 38176, Rock Hill, SC ostalCode w:st="on">29732ostalCode>. We cannot accept entries via e-mail because of the need to verify the authenticity of the filing.
At the end of the year, the grand prize winner will receive $500 and a copy of the book, "Myths Lies and Downright Stupidity!" by John Stossel. The second place winner will receive $250, and the third place winner gets $100.
Please submit Loony Lawsuits to Torts Crises and Soup Sandwiches. Your entry will be mentioned on the Podcast and winners will be selected in January 2008.
And if you’re a victim of our civil justice system, I would like to hear from you.
Are you a doctor who moved or changed your practice due to the cost of litigation or insurance? Are you with a manufacturer that abandoned a product due to the risk of legal exposure? Is your son or daughter missing out on some of the things that you enjoyed as a child?
Send your feedback by phone at 704.248.6171 ext. 4 or via e-mail at feedback@tortscrisesandsoupsandwiches.com
