Citizens Against Lawsuit Abuse of Central Texas

The Voice of the Taxpayer
March 29, 2010

Our friends at Citizens Against Lawsuit Abuse (CALA), (whose mission is to advocate for a fair and just legal system, they have campaigned for an end to abusive and frivolous litigation that hurts our economy, increases costs and delays justice for those with legitimate claims.)

CALA recently we shared testimony with members of the Texas House Committee on Judiciary and Civil Jurisprudence opposing a change in Texas law that would allow personal injury lawyers to collect damages on expenses that never happened. It’s innocuously called “paid v. incurred” but it will result in a personal injury lawyer windfall that will increase costs for all Texans. The committee is considering the issue as part of its interim charges.

The following example demonstrates how this proposal could drive up consumer costs:

Person A is injured by Person B in a car accident. Person A presents their health insurance card at the hospital. The hospital charges are $100,000, but because of discounts associated with the health insurance contract with the hospital, the actual expenses paid by the health insurer are $75,000. Under current law, Person B's auto insurance would reimburse the health insurer for $75,000. Under this proposal, a personal injury lawyer could sue the auto insurance company for the full $100,000, an amount that exceeds the actual costs incurred. The additional $25,000 would be an unfair windfall.

We’ve been here before. Three years ago, personal injury lawyers snuck this piece through the legislature. Governor Rick Perry wisely vetoed this misguided measure.

Texas needs laws that promote common sense and fairness in our courts, not laws that create new avenues to line the pockets of some personal injury lawyers at the expense of Texas families.

Thanks, CALA for shedding light on the ambulance-chacing attorneys' latest antics to game the system!


Thank you.