Citizens Against Lawsuit Abuse of Central Texas

Contact: Kirsten Voinis (512-922-7141)
May 23, 2007

AUSTIN – A misguided bill passed by the Texas Legislature could once again force Texas families to pay the price for personal injury lawyer greed, according to Citizens Against Lawsuit Abuse (CALA). CALA is calling on Gov. Rick Perry to protect Texans by vetoing the bill.

"House Bill 3281 would allow personal injury lawyers to recover damages for expenses that never happened," said Kirsten Voinis, spokeswoman for CALA of Central Texas. "The bill has no logical or legal justification. It's a sham and a shame."

H.B. 3281 – which has been passed by the House and Senate and now awaits action by Gov. Perry – would allow personal injury lawyers to sue for reimbursement of expenses that were never incurred.

This example demonstrates how H.B. 3281 could provide a lawsuit windfall:

 

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 HB 3281, personal injury lawyers 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 a windfall.

 

"Allowing personal injury lawyers to sue for costs that were never incurred by their client doesn't help consumers and doesn't help injured Texans – it simply makes some personal injury lawyers even richer," said Diane Davis, executive director of East Texans Against Lawsuit Abuse. "Texas consumers will bear the brunt of this sham via increased insurance premiums."

Connie Scott, executive director of Bay Area Citizens Against Lawsuit Abuse, noted that personal injury lawyers were the only Texans testifying in support of the bill.

"It is a giant red flag when the only people testifying in support of a measure are the very personal injury lawyers who stand to gain financially from its passage," Scott said. "And Texas consumers will bear the brunt of this scheme."

Voinis concluded, "Texas needs laws that promote common sense and fairness in our courts, not create new avenues to line the pockets of some personal injury lawyers at the expense of Texas families. A veto of H.B. 3281 by Gov. Perry will keep Texas on the right course."