Looking out for business....

• Position: Preset standards in tort litigation - Part 3

Third in a series of articles by the Alaska State Chamber addressing issues of major importance to Alaska's business community

For the past few decades, the tort litigation system has been increasingly criticized by legal scholars, public policy experts, and the public at large. Past efforts to change the system and eliminate the opportunities for abuse have met with defeat. The fear is that in changing the system, we will be taking away the ability for people who have suffered an injury or loss to receive just compensation. We all believe the ability to recover costs and damages in civil suits, to be made whole again, is - and should be - every Alaskan's right.

However, protection from frivolous lawsuits, from accusations over alleged actions that took place decades ago, and from unreasonably high legal costs and court settlements should also be the right of every citizen and business. Many individuals and businesses have experienced the nightmare of suits that drag on for years, accompanied by crippling legal costs. More and more frequently stories are brought forth from around the country of frivolous lawsuits and outrageous awards for damages.

Litigation is an exorbitantly expensive mechanism for compensating the injured parties. Outcomes are random and unpredictable, which is why the tort litigation system is so frequently described as a lottery. In many cases, the unpredictability of the system causes out of court settlements, even when wrong-doing does not exist, which in turn fosters the continuation of an unfair system.

The Alaska State Chamber of Commerce believes that business within the state is being jeopardized by present tort law, particularly in the area of punitive damages. ASCC's position is that punitive damages should have a preset standard and should only be assessed when malicious intent or willful neglect is proven.

To the point of preset standards, let's compare criminal or administrative law to the tort litigation system. In criminal and in administrative law, society has...