
What
a choice – between the lawyers or the federal courts, between the greedy
solicitors who sue everyone in sight and the judges who chased values
out of schools, allowed drunks and the legally blind to drive public
transportation, destroyed central city schools in the name of integration,
and instituted a get-out-of-jail-free penal system! How about "none
of the above?"
In one of the most partisan votes of the year, with the Republicans
against the lawyers and the Democrats for beating up the businesses
that are the targets of the court suits, the House of Representatives
narrowly approved a bill to transfer most class-action lawsuits from
state to federal courts. As Rep. John Linder, Georgia Republican, explained,
"Hundreds of frivolous lawsuits are filed in favorable state courts
and used as high-stakes, court-endorsed blackmail devices against companies
that usually settle rather than face a long and arduous court battle."
It is surely true that businesses are cavalierly sued left and right
in class action cases. But President Clinton promised to repay his No.
1 contributor source, trial lawyers, by vetoing the bill if it ever
reached his desk. So, there will be no law but at least conservatives
could applaud the House for trying to rein-in the litigation-happy liberals.
Or, should they?
This legislation would represent a massive shift of power from state
and local courts to the national level. Mr. Clinton may be against the
House bill for the wrong reason but that does not mean there are not
good ones. Indeed, in the area of environmental law, conservatives have
looked to state class-action suits as the preferred alternative to top-down
bureaucratic decisions, which are made "fair" only by making them universally
applicable to all equally-- which means the rule does not fit anyone
precisely, except by accident. Solving environmental or product liability
claims by bureaucratic rule is vastly inferior in tailoring solutions
to specific problems than court cases that consider the unique facts
of each case. Of course, even the House bill would rely upon class-actions
but would only make them national in scope. The traditional conservative
position has been to prefer local solutions -- indeed, Ronald Reagan
made "returning power to states, communities and citizens" the whole
point of his reforms.
The real issue is that neither state nor federal legislators will stand
up to the trial lawyer lobby and create reasonable rules under which
to try product liability or environmental cases. There must be underlying
criteria for the courts to follow in determining standing to sue and
grounds for determining what is harm and appropriate limits for granting
relief, and these must be set by legislators (or bureaucrats if they
fail to act). Every attempt to rationalize rules for class-action tort
cases leads to claims of "raping the environment'' or "being insensitive
to children being harmed by dangerous products." No legislator will
vote against nature or children. The lawyers are backed by large, well-organized
lobbies that know how to exploit public fears and a media that sympathizes
with them. This is why nationalization is no solution to the problem
Mr. Linder correctly warns against. The House bill hardly rationalizes
the process at all and, certainly, the bargaining necessary with the
Senate and President Clinton would take even that. The only solution,
as difficult as it is, requires establishing higher thresholds of harm
rather than the crazy ones that allow McDonald's coffee being spilled
on ones lap or the dearth of gnats in a region to qualify as torts.
And it is possible to limit awards to the liability incurred rather
than tugging upon the sympathy of a jury that naturally develops for
any wounded fellow creature.
Unfortunately, after years of preaching about the benefits of states'
rights, states and localities have not fared well under Republican leadership
in Congress. Republicans naturally want to protect big business from
bureaucrats but the multinational and national firms really want predictability
rather than free markets. After all, the dog-eat-dog world of the market
consumes them. While small businesses cannot adapt well to regulation
and have limited lobbying resources in far-away Washington, the big
guys can afford both. Forgetting that their mass base is small business,
the GOP often responds to the lobbyist who is nearby. As in the class-action
case, he usually represents big business. Reforms in communications
and electricity deregulation often follow a similar path. There are
some movements in law toward some space for state actions but they are
coming more from the courts than legislatures. Two recent Supreme Court
decisions in the sovereign immunity area have given states immunity
from national laws on labor, patent and trademark law. Even these have
been criticized by libertarians for siding with the state over business
rather than appreciating that the lower level entity was allowed to
make the decision.
Governance is a question of priorities. Yes, no one likes lawyers but
the problem is the criteria for class-actions, not class-actions themselves,
and only the legislators can change them. But which legislators do it
is critical. The more important value involved is the separation and
division of powers in the Constitution. The Founders could not be more
clear that this was the essence of the government they created. And
the proof that it works is the fact it is the world's longest-lasting
government. The logic of the Constitution is to balance self-interested
politicians against each other. Ordinary citizens do not have the time
for government and even activists have limited time and resources.
At the national level, legislators, judges and bureaucrats balance each
other. At the local level, only local elected officials have the time
to protect local interests. They have the time because they are paid
to watch their own interests. But if all power is arrogated to the national
level, they become low-level national bureaucrats who respond to those
above. Although this has changed somewhat since Mr. Reagan's counterrevolution,
centralization is still the dominant mindset. The Republican-controlled
House Commerce Committee just approved federal control of boxing, of
all things! Obviously, the GOP cannot get it right and, if they cannot
learn, they will undermine their whole raison d’etre. Sadly, the only
alternative is the Supreme Court, which has announced eight cases where
federal power might be limited this term. It would be a welcome irony
if the same court that led the parade to central power is the one that
now limits it.
Donald
Devine, former director Of the U.S. Office of Personnel Management,
is a columnist and a Washington-based policy consultant and a Vice Chairman
for the American Conservative Union.