Reform Facts

THE OTHER SIDE OF THE STORY
ENGLISH RULE

Supporters of legal "reform" advocate adoption of the English rule, also known as "loser pays," on legal fees and costs. They argue that such a rule would deter frivolous lawsuits. However, such a system actually would further erode personal responsibility in America, because it would force injured citizens to back down from holding wrongdoers accountable.

• The English rule would force injured Americans to shy away from holding wrongdoers accountable because a claim filed against a powerful corporation or government could wipe out these citizens financially if they have to pay the other side's legal fees and costs. Winning a trial is never guaranteed, and the injured party would be faced with this stark reality: You can try to right a wrong, but if all does not go exactly as planned your family gets a one-way ticket to financial ruin and dependency.
• Even England does not strictly adhere to the English rule. More than half of England's citizens qualify for government-run legal assistance. The English rule rarely applies when the "loser" is a recipient of legal aid.
• The conservative English magazine The Economist in January called for abandonment of the English Rule and expansion of contingent fees. The magazine stated: "The worst aspect of this system [English Rule] is that it denies access to justice to huge numbers of people."
• English trade unions provide legal representation to their members and pay the other side's costs if a case is lost.

Without a government-run program to help injured consumers pay legal fees and costs, Americans could not afford to vindicate their rights and wrongdoers would not be held accountable. Has anyone seriously suggested that America needs to replace its system, in which private litigants pay their own expenses, with a government-run program?

Article Reprinted with Permission from
American Association for Justice

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