Judicial Hellholes Report 2018-2019

“Themajority’ssecondholding,however,wouldextendindefinitelyadrugmanufacturer’s dutytowarnthecustomersofitssuccessor,evenaftersaleoftheproductline.Nospecial featureofFDAlaworpracticewarrantsthisrule.Plaintiffs’theoryof“predecessor liability”representsasubstantialandunprecedentedexpansionoftortduties.” – California Supreme Court Justice Carol Corrigan in her concurring and dissenting opinion in T.H. v. Novartis Pharmaceuticals Corp. (December 21, 2017). The liability-expanding California Supreme Court adopted the novel theory of “innovator liability” or “predecessor liability,” becoming just the second state court to do so. “Patientsaredyingbecausetheyareafraidtotakethemedicationsprescribedforthemdue tothefearbroughtonbythesenegativeandone-sidedcampaigns.” – Statement of Dr. Ilana Kutinsky discussing the impact of trial lawyer advertising before the U.S. House of Representatives Judiciary Committee’s Subcommittee on the Constitution. (June 2017) “ThePhiladelphiacourtsareoverlycongestedandaPhiladelphiajuryshouldnotbetaxed withtryingacasewithwhichithasnorelation.” – Pennsylvania Superior Court Judge William Platt reversing a decision by the Philadelphia Court of Common Pleas, finding the court lacked personal jurisdiction to hear the case. Hovatter v. CSX Corp. (April 27, 2018) “Italktobusinessownersandlobbyistswhorepresentbusinessownersandtheywouldnot comehereforanything…I’msorryIgetflusteredwhenIhearpeoplesaywearebringing inmoney.I’msorrywearelosing.” – Madison County Board member and Judiciary Chair Mike Walters talking about the “terrible drain” the infamous asbestos docket has been on the county’s economy. (January 2018) “ThetriallawyersarethesinglemostpowerfulpoliticalforceinAlbany.That’stheshort answer.It’salsothelonganswer.” – New York Governor Andrew Cuomo, explaining why efforts to reform the state’s antiquated, growth hindering “scaffold law” have been thwarted. (April 23, 2014) JUDICIAL HELLHOLES 2017–2018 PREFACE Since 2002, the American Tort Reform Foundation’s (ATRF) Judicial Hellholes® program has identified and documented places where judges in civil cases systematically apply laws and court procedures in an unfair and unbalanced manner, generally to the disadvantage of defendants. More recently, as the lawsuit industry has aggressively lobbied for legislative and regulatory expansions of liability, as well, the Judicial Hellholes report has evolved to include such law- and rule-making activity, much of which can affect the fairness of any given jurisdiction’s civil justice climate as readily as judicial actions. The content of this report builds off the American Tort Reform Association’s (ATRA) real-time monitoring of Judicial Hellhole activity year-round at JudicialHellholes.org. It reflects feedback gathered from ATRA members and other firsthand sources. And because the program has become widely known, ATRA also continually receives tips and additional information, which is then researched independently through publicly available court docu- ments, judicial branch statistics, press accounts, scholarship, and studies. Though entire states are sometimes cited as Hellholes, specific counties or courts in a given state often -war rant citations of their own. Importantly, jurisdictions singled out by Judicial Hellholes reporting are not the only Judicial Hellholes in the United States; they are simply among the worst. The goal of the program is to shine a light on imbalances in the courts and thereby encourage positive changes by the judges themselves and, when needed, through legislative action or popular referenda. ABOUT THE AMERICAN TORT REFORM FOUNDATION TheAmericanTortReformFoundation(ATRF)isaDistrictofColumbianonprofitcorporationfoundedin 1997.Theprimarypurposeofthefoundationistoeducatethegeneralpublicabouthowtheciviljustice systemoperates,theroleoftortlawintheciviljusticesystem,andtheimpactoftortlawonthepublicand privatesectors. Judicial Hellholes is a registered trademark of ATRA being used under license by ATRF. JUDICIAL HELLHOLES 2017–2018 i CONTENTS PREFACE ..............................................................................................i EXECUTIVE SUMMARY................................................................................ 1 JUDICIAL HELLHOLES #1 California........................................................................................ 5 #2 Florida .........................................................................................12 #3 New York City...................................................................................18 #4 St. Louis, Missouri ...............................................................................24 #5 Louisiana .......................................................................................29 #6 Philadelphia Court of Common Pleas ..............................................................32 #7 New Jersey Legislature............................................................................36 #8 Madison and St. Clair Counties, Illinois.............................................................39 #9 Twin Cities, Minnesota ..........................................................................41 WATCH LIST Colorado Supreme Court............................................................................45 Georgia Supreme Court .............................................................................47 Montana Supreme Court ............................................................................49 Newport News, Virginia.............................................................................51 Ohio 8th District Court of Appeals ...................................................................52 Pennsylvania Supreme Court ........................................................................53 West Virginia Supreme Court of Appeals ..............................................................56 DISHONORABLE MENTIONS American Law Institute Adopts Problematic Liability Insurance Restatement . .60 Arkansas Supreme Court Strikes down Tort Reform Ballot Initiative ......................................60 Cook County, Illinois - BIPA Lawsuits on the Rise Again after Temporary Slow-Down .......................61 Delaware Supreme Court Overrules Take-Home Asbestos Liability Precedent . 62 Idaho Rolls Back Seatbelt Non-usage Admissibility .....................................................62 Maryland High Court Refuses to Apply Statute of Repose in Asbestos Cases ................................62 Massachusetts High Court Adopts Innovator Liability . 63 New Mexico and North Dakota Judges Strike Down Medical Liability Limits ...............................63 Texas Trial Court Awards Massive Judgment Despite Toyota Vehicle Exceeding Federal Safety Standards .......64 Bexar County, Texas Trial Court Awards Nation’s Largest Judgment in 2018 . 64 POINTS OF LIGHT In the Courts Supreme Court Enforces Class Action Waivers in Arbitration Agreements................................65 Fifth Circuit Overturns $502 Million J&J Verdict after Finding ‘Unequivocally Deceptive’ Conduct by Plaintiffs’ Lawyer.............................................65 New Jersey Supreme Court Issues Series of Well-Balanced Decisions ....................................66 Wisconsin Supreme Court Upholds Medical Liability Limits ...........................................68 In the Legislatures ................................................................................69 CLOSER LOOKS ‘Junk Science’ Making its Way into American Courtrooms ...............................................70 Fighting ‘No-injury’ Lawsuits ........................................................................71 Activist State Attorneys General Regulate Through Litigation.............................................73 THE MAKING OF A JUDICIAL HELLHOLE ...............................................................76 Copyright © 2018 by American Tort Reform Foundation EXECUTIVE SUMMARY The2018 - 2019 Judicial Hellholes report shines its brightest spotlight on nine jurisdictions, courts or legislatures that have earned reputations as Judicial Hellholes. Some are known for welcoming litigation tourism or as hotbeds for asbestos litigation, and in all of them state leadership seems eager to expand civil liability. A recent study released by the U.S. Chamber Institute for Legal Reform highlights both the overall 1 CALIFORNIA cost and inefficiencies of the tort system. The report 2 FLORIDA states that the cost and compensation paid in the U.S. tort system totaled $429 billion in 2016, accounting 3 NEW YORK CITY for 2.3 percent of the U.S. gross domestic product. The 2018-2019 Judicial Hellholes jurisdictions largely con- 4 ST. LOUIS, MISSOURI tributed to these costs, and on a local level, they saw 5 LOUISIANA job loss, personal income loss, and state revenue loss due to the excessive tort costs in the states. The data 6 PHILADELPHIA COURT clearly demonstrate the need for a more balanced civil OF COMMON PLEAS justice system. 7 NEW JERSEY LEGISLATURE #1 CALIFORNIA A perennial Judicial Hellhole, California has once again regained its position atop 8 MADISON AND ST. CLAIR the Judicial Hellholes list due to the propensity of COUNTIES, ILLINOIS California judges and legislators to extend liability at almost every given opportunity. California courts 9 TWIN CITIES, MINNESOTA have adopted novel theories of liability and unique California laws and expansive court decisions have fos- tered abusive “no-injury” litigation. As a result, the state has become a magnet

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