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The Wall Street Journal (11/3, Timiraos) reports that in "a new aggressiveness by the plaintiffs' bar after years on the defensive," both "plaintiff and consumer groups, buoyed by prospects of a Democratic president and expanded Democratic majority in Congress, are preparing a big push for legislation that would roll back limitations on personal-injury and class-action lawsuits." They seek to limit s on "companies' use of federal regulations as a shield from litigation under state law, and laws to end mandatory arbitration in consumer contracts." In fact, "The centerpiece of the AAJ's agenda is its opposition to 'pre-emption." While "President Bush often complained about excessive lawsuits choking the American economy...many of his proposed changes -- limits on fees and big payouts -- were often stymied by trial lawyers." Now, "pro-plaintiff groups see an ally in Sen. Obama."
Business said to favor McCain on lawsuit limits.
Washington Times (11/1, Ramstack) reported, "The Chamber of Commerce has called for legislative curbs on lawsuit abuse, or tort reform, for years," and now "John McCain and Barack Obama have added their voices to complaints about how lawsuits have gone too far." However, "business groups tend to support Mr. McCain's proposals on lawsuit abuse more than Mr. Obama's ideas." Obama's "record on tort reform consists more of statements in favor of it than votes on the issue, compared with Mr. McCain, who has had a much longer legislative career." Lisa A. Rickard, president of the Chamber's Institute for Legal Reform, said "When it comes to issues of legal reform, McCain is stronger on those issues."
Yesterday the U.S. House Committee on Oversight and Government Reform issued a report saying FDA career staff objected to a change in preemption rules, even saying the central factual justifications for the agency’s new positions were false. The report highlights internal FDA documents which show high-ranking career officials repeatedly warning about the dangers of not allowing drug companies to add additional warnings to their labels without FDA approval. Prior to this the FDA had asserted through a rule on drug and device labeling that manufacturers should not be held accountable for failing to update their label with additional risks, if the original label was approved by the FDA.
The report cites Dr. John Jenkins, the highest official in FDA’s new drug review process, writing:
M]uch of the argument for why we are proposing to invoke preemption seems to be based on the false assumption that the FDA approved labeling is fully accurate and up-to-date in a real time basis. We know that such an assumption is false.”
Prior to the rule being issued one FDA career official asserted that the rule “is not as it purports to be, consistent with the agency’s role in protecting the public health…”
A copy of the report can be found at:
http://oversight.house.gov/documents/20081029102934.pdf .
Associated Press story on the issue:
http://ap.google.com/article/ALeqM5h1C2M6_6XJkirIrtYpwjP_02a2pAD944G96G3
LA Times story:
http://www.latimes.com/news/nationworld/nation/la-na-fda30-2008oct30,0,1783486,print.story
Since he was the governor of Texas, President Bush has campaigned for lawsuit reform. As president, however, he has made little progress on the issue because Democrats have blocked him every time he tries to tackle the issue directly. Limits on lawsuits have been proposed for drug labeling and packaging, along with rules ranging from mattress flammability standards to dietary sweeteners and roof-crush requirements in car rollovers. Clearly, this kind of limitation is more troubling and far more effective than the standards that they apply to. If pre-empted, a particular standard no longer is valuable to the consumer as a rule of law.
The chief executive office of the American Association for Justice says agencies are engaging in activities that are allowing negligent companies off the hook and knowingly putting American consumers at risk. According to Joan Claybrook, former head of the NHTSA, companies are looking for total immunity and the regulators in the Bush Administration are helping them achieve that. Later this year, the Supreme Court will determine whether or not federal preemption relates to lawsuits and prescription drug labeling because defendant drugmakers contend they should not be involved in lawsuits since the FDA approved the product and warning label on the drug
The concept of federal preemption, rooted in the Supremacy Clause of the Constitution, is underlying this bureaucratic version of lawsuit reform. Federal preemption refers to situations in which federal regulation and law trumps state law. The issue at hand is whether or not companies can use the broad preemption language in regulatory preambles to get the case thrown out. An expansive interpretation of the preemption doctrine leaves little room for consumers to sue, and that is what has been taking place recently.
Here is a fact paper offered by the Pennsylvania Association for Justice on Federal Preemption in relation to defective products.
The lawsuit filed by actor Dennis Quaid and his wife, Kimberly, after a hospital unintentionally gave their newborn twins the wrong dosage of a blood-thinning drug is being contested by a drug maker on the grounds that it is immune from liability.
Owing to rules that have been or are being rewritten by the Bush administration, any person filing a similar product liability lawsuit could face the same argument, greatly increasing the chances his suit would be lost or dismissed outright.
In articles last week, the Associated Press disclosed that federal agencies are quietly rewriting the language used in regulating consumer products. Before the rewrites, the language included this sentence: ‘The final rule is not intended to preempt state tort civil actions,’ meaning a company can be sued if its products are claimed to be flawed. After the agencies’ rewrites, however, the language says federal preemption questions can indeed arise for a number of reasons. The Quaids’ case is an example of how companies can use the new language.
See the Las Vegas Sun for the entire editorial.