Mississippi was known as

“the Home of Jackpot Justice”

“Ground Zero” and “Dumping Ground”

“The Lawsuit Mecca”

“a Mecca for plaintiff’s claims against out of state businesses”

• Our state was continually ranked worst in the nation by the U. S. Chamber of Commerce in their annual State’s Liability Systems Ranking Study.

• The 1^st propulsid case in the nation was in Jefferson County, MS, with $1.2 billion awarded.

• Out of state lawyers were flooding Mississippi.  According to the Ms Board of Bar Admissions records, in February 2004, more out of state attorneys who already were licensed in other states took the Mississippi bar exam than Mississippi residents. 

• 1999-2001: Mississippi led the nation in loss of jobs percentage.

• 19 jury awards exceeded $9 million, totaling over $2 billion, with six above $100 million.  Mississippi was ranked #2 in the nation in $1 million verdicts by Jury Verdict Research. 

• Approximately 470 Mississippi doctors were sued within a week.  Louisiana malpractice insurance premium was ¼ of Mississippi insurance premium and doctors were fleeing the state.

• A silica lawsuit filed in Noxubee County had nearly 4,200 plaintiffs but fewer than 35 actually lived in the state.

• Although Jefferson County had less than 10,000 residents, more than 21,000 people were plaintiffs in Jefferson County from 1995-2000.  In one case, 398 people who took diet drugs sued 203 physicians and pharmacists in a single lawsuit.  Not a single plaintiff, and only one defendant in the case, resided in the county in which the case was brought.

• Fayette, the county seat of Jefferson County, had the distinct privilege of holding the title of “jackpot justice capital of America." 

• The news program “60 Minutes” devoted a program to explaining why Mississippi’s 22^nd judicial circuit is a favorite place for plaintiffs’ lawyers to flock from all over the nation.  After the airing of the program, Media General Operations (which owns the local CBS affiliate), the 60 Minutes’ producers and several individuals who commented in the program found themselves named as defendants in a $6.4 billion defamation lawsuit—in Jefferson County.   

• In June 2003, it was reported that the FBI was probing possible judicial corruption in South Mississippi as well as these multimillion-dollar awards in Jefferson County. 

• A Holmes County jury awarded $25 million each to six plaintiffs, for a total of $150 million, who alleged they were exposed to asbestos at several workplaces in the state.  Their claims came from exposure in different environments, ranging from schools to shipyards and industrial boiler rooms.  It was reported that another lawsuit had only 1 plaintiff out of 22, and only 1 defendant out of 66, from Holmes County. 

• The Institutions of Higher Learning’s Center for Policy Research and Planning survey confirmed that the legal climate and threat of large punitive damage awards were the principal reasons for the business leaders’ loss of confidence.

• President George W. Bush came to Mississippi and spoke about the importance of tort reform.  MFEP helped coordinate this event and several of our members participated in a round table discussion with the President.

• Our Insurance Commissioner reported that 71 insurance companies stopped doing business in the state.  Obstetricians are few and hard to find due to skyrocketing medical malpractice premiums and thousands of jobs have been lost.

• FBI arrested twelve people who allegedly forged prescriptions to cash in on a $400 million settlement with American Home Products involving the diet drug combination Fen-Phen in Jefferson County in 1999.

Study after study confirmed the tort reform problem in Mississippi. 

-2002 and 2003 Harris Poll State Liability Systems Ranking Study – MS is 50^th. 

-2002 ATRA Judicial Hellhole® report: Mississippi’s 22^nd judicial circuit (Copiah, Jefferson, Claiborne) is listed as the 3^rd worst because of the mass actions and high jury verdicts. 2003 ATRA Judicial Hellhole® report: Mississippi’s 22^nd judicial circuit (Copiah, Jefferson, Claiborne) is again listed as the 3^rd worst, Holmes county is listed as the 12^th worst and Hinds County is listed as the 13^th worst. 

-2002 Perryman Report, “The Potential Impact of Proposed Judicial Reforms on Economic Activity in Mississippi”.  Results reveal the total cost of the tort system in MS in 2001 was $1,294 billion.  The overall impact of the tort system on the MS economy measured relative to the US is estimated by 2006 to include losses of:

$933.5 million annual total expenditures

$473.7 million in annual gross state product

$278.6 million in annual personal income

$121.0 million in annual retail sales

9,138 permanent jobs

-2004 Perryman Report, “The Potential Impact of Proposed Judicial Reforms on Economic Activity in Mississippi” (prepared in early May).  The results of the analysis reveal that the total costs of the tort system in Mississippi in 2003 were $1.497 billion.  The overall impact of the tort system on the Mississippi economy measured relative to the US (including all direct, indirect, and induced effects) is estimated by 2009 to include losses of:

$1,093.7 million annual Total Expenditures;

$562.0 million in annual Gross State Product;

$326.4 million in annual Personal Income;

$141.7 million in annual Retail Sales; and

10,707 Permanent Jobs.

 After Tort Reforms

Mississippi Is Open For Business!

The Wall Street Journal called our new legislation the most comprehensive tort reform legislation in America.

The state has attributed reforms as a tool that helped recruit business to the state as well as the expansion of several existing businesses.  According to Gray Swoope, executive director for the Mississippi Development Authority, a business climate with a competitive tax structure, tort reform, work-force training and incentives helps attract and keep businesses in the state. 

The American Justice Partnership (AJP) conducted an interview with Governor Haley Barbour and AJP President Dan Pero concerning the concrete benefits to small business and consumers in Mississippi resulting from lawsuit abuse reform legislation. 

Dennis C. Cuneo, a Toyota Consultant, stated, "While the nation got to see his [Governor Barbour] leadership in Katrina, we got to see his leadership up close, and his personal involvement in this struck all of us at Toyota."  Governor Barbour stated that Mississippi would not have the Toyota plant if we had not gotten tort reform.

Dr. Dan Jones, the dean of the University of Mississippi's School of Medicine, announced a plan to increase the number of students, residents, and faculty members by 30% in the next five years.

The Medical Assurance Company of Mississippi (MACM), announced it would not raise its base premium rates in 2005 – a major shift from double-digit premium increases in the earlier part of this decade and would reduce its medical liability insurance rates by 5 percent for 2006 and 10 percent for 2007.  MACM also lifted a moratorium on writing new medical malpractice policies. "Combined with the other positive effects of tort and judicial reform, our financial results to date indicate that another rate reduction is justified, and I trust that our insureds will be pleased," Michael D. Houpt, MACM's president and CEO.  "It is another concrete example of how tort reform is working to protect the quality and availability of health care by ending lawsuit abuse and leading to reduced medical liability rates in Mississippi," Governor Haley Barbour.  In 2006, MACM voted that a premium refund equivalent to 20 percent of that portion paid by each MACM insured for the first million dollars of coverage is in order for 2007.  “We certainly welcome this great news for both our medical community and our state.  These refunds are yet another example of how tort reform has benefited Mississippians by working to protect the quality and availability of healthcare, and I am confident this legal reform legislation will continue to produce positive impacts in our great State," said Governor Haley Barbour.  

Mass Mutual Insurance Group announced it would return to Mississippi.  St. Paul Travelers announced it would return to Mississippi because of recent tort reform. World Insurance Company and Equitable Life Insurance Company announced they were returning to Mississippi.  St. Paul’s also announced a decrease in rates for one of its general liability programs by an average of 60 percent in Mississippi.  GE Capital Insurance Group decreased its commercial property rates by an average of 20 percent.  More than 50 new insurance programs were approved by the Insurance Department.

Study after study confirmed our tort reforms were making a difference in Mississippi. 

2004 ATRA Judicial Hellhole® report: No Mississippi county is listed!  ATRA states, “Mississippi has transformed its litigation environment for the better over the past three years, making it this report’s brightest ‘point of light.’”

2005 Harris Poll State Liability Systems Ranking Study – MS is still ranked 50^th but 96 percent of survey respondents who were familiar with the comprehensive legal reform legislation effective last September expect a major or moderate improvement in the state's litigation environment.

2005 ATRA Judicial Hellhole® report: No Mississippi county is listed!  The report states, “Mississippi has been transformed from the jackpot justice capital of America to America’s number one reformer.”

2006 Harris Report State Liability Ranking Study – Mississippi if finally not ranked 50th! 

U.S. Tort Liability Index 2006 Report: Mississippi is classified as a salvageable state, meaning it is poised to move up in future rankings (high monetary tort losses but have enacted meaningful reforms).  The report also states that, “Mississippi is first in frivolous-lawsuit reform, venue reform, and the standard for expert witnesses.” 

U.S. Tort Liability Index: 2006 Report: MS rankings:

• Monetary tort loss ranking (a measure of each state’s past tort system output): ranked one of the worst at 46. 

• Threats ranking (tracks the effect of lawyers and the extent of litigiousness): ranked one of the best at 8.  Our tort reform laws are changing the abusive environment.

• Monetary caps: ranked 15. 

• Substantive law ranking (legal rights and responsibilities in such areas as class actions, medical malpractice, products liability, and negligence standards. States that perform well in this subgroup will rise in future overall rankings, baring any setbacks): ranked 25.

• Procedural rules ranking (how courts are structured, venue is decided, juries operate, and judges are seated): ranked 2nd.  Again, this is a result of our tort reform measures.

2006 ATRA Judicial Hellhole® report: Again, no Mississippi county is listed!  Mississippi is now listed in the category "Success in Judicial Hellholes."  However, our state has been added to the "Areas to Watch" list.  "Despite the state's adoption of comprehensive tort reform legislation, several areas in Mississippi continue to be regarded as particularly plaintiff-friendly."

The Pacific Research Institute released a report, Jackpot Justice, which highlights many of Mississippi's past problems and its successes. 

2007 ATRA Judicial Hellhole® report: Mississippi is not listed as a Judicial Hellhole and was included in the "Points of Light" which provide examples of judges adhering to the law and reaching fair decisions as well as legislative action that has yielded positive change.  "The Mississippi Supreme Court rejected recognition of a claim for medical monitoring where a plaintiff has no identifiable injury, placing it in stark contract with a ruling by the Missouri Supreme Court that earned it a dishonorable mention."  However, our state remains on the "Areas to Watch" list.

The American Justice Partnership released Medical Crisis: A Pocketbook Matter for Employers.  This report presents compelling documentation of the linkage between healthcare costs and medical liability laws based o the experiences of Pennsylvania, Texas, West Virginia, and Mississippi.

2007 Harris Report State Liability Ranking Study: Mississippi isn't ranked 50th. 

The Directorship Annual Guide to State Legal Climates ranks Mississippi 33rd.  "The report notes that Mississippi's composite ranking is low but it is a state in transition." 

U.S. Tort Liability Index: 2008 Report:  Based on the composite analysis from both rankings, the study places states in four categories:  Saints, Sinners, Salvageable, and Suckers.  Mississippi is listed as a Saint:  a state that has enacted aggressive legal reform measures, protected those measures in the legislature and courts and, as a result, is well-positioned to experience economic benefits. 

• Mississippi ranked 23 in the Input Ranking (Ranks states based on tort and other legal reform measures “on the books.” According to McQuillan, the input ranking is “a solid predictor of a state’s future performance on the output side, because the more willing a state is to enact reforms and then protect them through the legislature and courts, the better the economic indicators will become over time.”)

• Mississippi ranked 9 in the Output Ranking (Ranks states based on cost/risk analysis, reviewing hard tort costs and losses in discreet categories. According to McQuillan, the output ranking is “a good snapshot of a state’s current status in terms of liability risks and tort health.”)

2008 State Liability Ranking Study: Mississippi's ranking is up to 48 now.

2008/2009 ATRA Judicial Hellhole® report: Mississippi is not listed as a Judicial Hellhole!  However, our state is on the "Dangerous Liason's" list.  "If former Mississippi Attorney General Mike Moore pioneered the model wherein personal injury lawyers are hired by the AG and, in turn, reward his or her campaign with cash, then credit goes to his successor Jim Hood for perfecting it."

U.S. Tort Liability Index: 2010 Report:  Mississippi is classified as “Salvagable” (“state that has moderate to high relative monetary tort losses and/or moderate to high litigation risks, yet has moderate to strong tort rules.”).  This classification is due to hurricanes Katrina and Rita.  “As people returned and large-scale rebuilding ramped up, torts naturally increased. Mississippi was also a victim of its attorney general who filed a civil lawsuit against most insurers in Mississippi, alleging fraudulent handling of claims stemming from Katrina. This has also worked to increase tort losses and tort litigation risks. We expect the fall in Mississippi’s ranking to be short-lived, as the hurri­cane effects weaken over time.”

• Mississippi ranked 5 in the Input Ranking (Ranks states based on tort and other legal reform measures “on the books.” According to McQuillan, the input ranking is “a solid predictor of a state’s future performance on the output side, because the more willing a state is to enact reforms and then protect them through the legislature and courts, the better the economic indicators will become over time.”)

   

• Mississippi ranked 21 in the Output Ranking (Ranks states based on cost/risk analysis, reviewing hard tort costs and losses in discreet categories. According to McQuillan, the output ranking is “a good snapshot of a state’s current status in terms of liability risks and tort health.”)

2010 State Liability Ranking Study: Mississippi's ranking is 48th.  While our state has enacted incredible reforms, the study cites these possible explanations as to why we are 48th:

• Mississippi’s Attorney General Office is "a virtual plaintiffs’ law firm",

• Fraudulent claims and corruption in the judiciary, citing two plaintiffs’ attorneys who fraudulently filed asbestos claims, Dickie Scruggs, Paul Minor, and two former Mississippi judges,
• Pending challenge to one of our tort reforms,
• Mississippi is home to a novel lawsuit that was seeking damages for global warming.

2010/2011 ATRA Judicial Hellhole® report: Mississippi is not listed as a Judicial Hellhole!  However, our state is listed in the “Rogues’ Gallery” due to two personal injury lawyers who were found civilly liable by a federal jury for their pursuit of fraudulent asbestos claims.  They were ordered to repay the $210,000 damages they had initially won as well as $210,000 in punitive damages. 

Medical Liability Reform:  A Case Study of Mississippi, published in the Journal of the American College of Obstetricians and Gynecologists in August 2011, examines the impact of tort reform in Mississippi on physicians insured by the Medical Assurance Company of Mississippi (MACM), the leading medical liability insurer in the state.  The article concludes that tort reform in Mississippi, particularly the state's ceiling on noneconomic damages, brought about a substantial improvement in the state's medical liability environment. The number of tort lawsuits against MACM-insured physicians, especially OB/GYNs, has fallen dramatically, and medical liability insurance premiums have been both reduced and refunded since the legislation was implemented.

In Trial Lawyers Inc.: Attorneys General – A Report on the Alliance between State AGs and the Plaintiffs’ Bar 2011, released on Tuesday, October 25, 2011, the Manhattan Institute’s Center for Legal Policy director James R. Copland explores this relationship and how it works to the mutual benefit of plaintiffs’ lawyers and elected state AGs.  Which state AGs are friendliest with the trial bar? The state attorneys general receiving the largest share of their campaign contributions from lawyers since 2006 are:

·  Jim Hood (D-Mississippi) (45%)

·  Tom Miller (D-Iowa) (44%)

·  Darrell McGraw (D-West Virginia) (43%)

·  Alan Wilson (R-South Carolina) (33%)

·  Gary King (D-New Mexico) (26%)

Post Office Box 3025 · Ridgeland, MS  39158       Phone: 601-352-6337     Fax: 601-352-7869