Woe Is the Consumer Who Has to Go to the Texas Supreme Court

Mother Jones—January 26th, 2012

Woe is the injured consumer or medical patient in Texas who brings a lawsuit against a big corporation or the government. A new report out from the nonprofit advocacy group Texas Watch has taken a hard look at more than 600 decisions by the Texas Supreme Court over the past decade and found that consumers and plaintiffs are routinely taking it on the chin. And consumers are losing far more often in the court than they were before short-lived GOP presidential candidate Rick Perry became governor.

Since 2005, consumers have lost nearly 80 percent of Texas Supreme Court cases in which a consumer was pitted against a big corporation or the government. Most of the time, the consumer plaintiffs had already prevailed before a jury—the high court overturned jury verdicts in 74 percent of consumer cases, with very little dissent.

Texas Watch attributes the massive scale-tilting to the fact that the court is now dominated by judges who were appointed by Perry starting in 2000. Six of the nine judges on the all-Republican court were initially appointed by Perry. In Texas, the judges are elected, but when a vacancy occurs, a governor can appoint a judge to fill out the remaining term, a move that all but guarantees the judge will prevail in the general election. And in Texas, Republican judges who’ve wanted to retire have often done so mid-term, allowing Perry to appoint their replacements.

Read More: Mother Jones

Report: Supreme Court Pro-Business Bias Hurts Consumers

Dallas Morning News—January 26th, 2012

The Texas Supreme Court over the last decade has morphed into an activist court driven by ideoloy and acting to benefit corporate interests, according to a report released today by consumer advocacy group Texas Watch.

The scathing report is the result of a review of 264 court decisions over the past 10 years and paints a picture of a court concerned only with giving more power to the powerful and trampling on the interests of Texas families in the process. The 9-judge panel, all Republican, “employs twisted logic and eviscerates long-standing precedent to achieve poltiical ends,” the report says.

Texas Watch found that when Gov. Rick Perry began making appointments in 2000, his picks made the court decidely more pro-business than it had been under George W. Bush, “subverting the rule of law from within and effectively turning the granite walls of the court into a mausoleum for plaintiffs.”

Read More: The Dallas Morning News

Audio: Braddock & Winslow Talk SCOTX

Texas Watch—January 26th, 2012

Our new report about the Texas Supreme Court’s pro-defendant record is already getting attention from the media. Check out the story from the Texas Tribune and take a listen to Texas Watch’s executive director Alex Winslow discuss the report’s findings with Scott Braddock on News 92fm this morning. Read More »

Consumer Group: Supreme Court Favors Businesses

Anna Whitney, Texas Tribune—January 26th, 2012

In the last 10 years, the majority of Texas Supreme Court decisions have favored corporate interests over consumers, and the panel of judges has repeatedly overstepped its authority by overturning jury verdicts and interpreting the law to benefit the rich, according to a scathing report set to be released today by consumer advocacy group Texas Watch.

“The Texas Supreme Court has marched in lock-step to consistently and overwhelmingly reward corporate defendants and the government at the expense of Texas families,” the report says.

Texas Watch says in its study, which reviewed court decisions in more than 624 cases in the past 10 years, that the trend started when Gov. Rick Perry began appointing Supreme Court justices in 2000. The report argues that data from court rulings shows that Perry’s appointees “corporatized the court.” But the court, a former justice and conservative groups disagree with the report’s conclusions, arguing that a statistical analysis doesn’t provide enough context.

The state’s highest civil court ruled in favor of defendants — mostly corporations and government entities — in about 74 percent of the 624 consumer cases brought before the panel in the last decade, according to the report.

Alex Winslow, executive director of Texas Watch, said the high court’s nine justices, who are all Republicans, are too similar to one another. Many represented corporations in court before they became justices, and 85 percent of the time, they agreed with one another.

“There’s not the kind of deliberative discussion and debate you’d like to see in the highest court in the state,” Winslow said. “There’s no way for the law to evolve.”

The court has overturned jury decisions 74 percent of the time, according to the report, and it interprets the law “broadly or narrowly, as the circumstances warrant, to reach a result that favors the powerful.”

“The court is not giving that proper deference to a jury,” Winslow said.

Bill Peacock, vice president of research at the Texas Public Policy Foundation, said he doesn’t think the large percentage of defendant wins means that the Supreme Court favors corporations. He attributed the numbers to the court interpreting laws that the Legislature has passed to limit frivolous lawsuits, which are often brought by consumers against businesses.

“The fact that more corporations are winning before the Supreme Court shows that the Supreme Court is doing its job,” Peacock said.

In a case the Texas Watch report notes as particularly anti-consumer, John Summers sued Entergy. That company owned the power plant he worked for in Bridge City, where he was injured on the job. But Summers didn’t work directly for Entergy; he was hired by a contractor to work at Entergy’s plant. The question before the Supreme Court was whether Summers could sue Entergy even though that company did not hire him.

The court decided that the contractor’s employees were also Entergy’s employees and so Summers’ injuries were covered under Entergy’s worker’s compensation plan. As a result, he could not sue Entergy for negligence in his injuries.

Winslow said that is a “cake and eat it too situation” for employers. Employees of contractors will receive less compensation for their injuries, because they are considered employees of the larger corporation for purposes of workers’ compensation. But the contractors’ employees won’t get the same kind of health insurance and other benefits that corporate employees receive.

Osler McCarthy, the Supreme Court staff attorney for public information, disagreed. He said people often read cases too simply and decide that they have much broader implications than they actually do.

“What I see the court doing is trying to follow the law,” he said. “The statute allowed one company to be general contractor and premises owner.”

Former Supreme Court Justice Scott Brister also said evaluating the Supreme Court isn’t as simple as compiling statistics. The justices, he said, only consider cases in which they might reverse the lower court’s decision.

“They only look at 10 percent of the cases. They’re not going to take a case that looks right, and the consumer won,” Brister said.

Brister denied Texas Watch’s assertion that the court favors corporations.

“We don’t look at a case and say, ‘Where can we help a company?’” he said. “We say, ‘Where does something look wrong?’”

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This article originally appeared in The Texas Tribune at http://www.texastribune.org/texas-courts/texas-supreme-court/texas-watch-claims-supreme-court-favors-businesses/.

Report: Decade-Long Review Shows Texas Supreme Court Is Activist, Ideological

Court Watch—January 26th, 2012
The Texas Supreme Court has a long history of favoring corporate defendants over families and small businesses, according to a decade-long review of the Court’s decision making by Court Watch, a project of the non-profit Texas Watch Foundation.

Court Watch reviewed the 624 cases involving consumers decided by the Court between 2000 and 2010. The report, “Thumbs on the Scale: A Retrospective of the Texas Supreme Court, 2000-2010,” finds that the state’s high court for civil matters “has marched in lock-step to consistently and overwhelmingly reward corporate defendants and the government at the expense of Texas families.” Read More »

So, Just What Is a Junk Policy?

Texas Watch—January 25th, 2012

So, just what is a junk insurance policy? Sen. Leticia Van de Putte said she’s been hearing from constituents who are fed up with junk policies with what she called “luscious exclusions” and “skyrocketing” deductibles. She asked Insurance Commissioner Eleanor Kitzman about this at a recent committee hearing. Kitzman was unaware of the problem.

Well, we are aware of the problem. So, we sent Sen. Van de Putte a letter outlining the problem (and we sent a copy to Commissioner Kitzman too). Read More »

Still Waiting on Tort Reform Savings

Henderson Daily News—January 24th, 2012

Texas may not have been the first state to welcome tort reforms but I can’t imagine anyone embracing it with such wild enthusiasm as Texans over the past 20 years or so.

It was never hard to sell to the public because of all the promises of savings on insurance premiums touted by tort reform proponents, proving once again that everyone votes in their own self-interest when they pull the voting booth curtain.

During his failed presidential bid, Texas Gov. Rick Perry perpetuated the myth that implementing Texas-style tort reforms would go a long way toward curing what’s wrong with the healthcare system. Perry was polling at 1 percent going into the South Carolina primary.

He recommended that all states to do as Texas did in 2003 when lawmakers enacted legislation aimed at limiting the amount of money juries can award patients who win malpractice lawsuits against doctors and hospitals. The law capped non-economic (pain and suffering) damages at $250,000 in lawsuits against doctors and $750,000 against hospitals. Voters overwhelmingly approved a like-minded constitutional amendment later the same year.

Truth is, chances of a Texas family saving a few bucks on premiums would be greater if they moved to another state.

Read More: Henderson Daily News

USAA Awarding Hefty Bonuses Again

San Antonio Express-News—January 24th, 2012

Another solid year by USAA means its employees will receive healthy bonuses once again.

The San Antonio financial services and insurance company has awarded employees a bonus equal to 18.4 percent of their annual base salary.

The bonus matches last year’s payout, which was the second-highest ever awarded by USAA. The highest bonus, 18.8 percent, was given two years ago.

The bonus rankled some USAA members, given it follows USAA’s announcement earlier this month that it plans to raise home and condo insurance rates in Texas. It was the third rate-increase announcement in the span of a year. Taken together, the three rate increases total a 15.2 percent jump.

“Looks like I’ll have to shop around,” tma wrote on mySA.com, the San Antonio Express-News’ website. “A company that gives all employees an 18.5 percent bonus in this economy yet sticks it to their customers is not one that I want to use.”

Credit Card Arbitration Trumps Lawsuits, Court Says

NPR—January 13th, 2012

Consumers who sign credit card agreements that feature an arbitration clause cannot dispute fees or charges in court, the Supreme Court ruled Tuesday. The 8-to-1 decision drew immediate fire from consumer advocates.

To get a credit card, a consumer generally must sign a detailed agreement. In the fine print, almost always, is an arbitration clause that says that if consumers want to dispute fees, they must do so through arbitration, not in court.

A 1996 federal law allowed consumers to take their disputes to court. But in its ruling Tuesday, the Supreme Court said arbitration clauses in those agreements trump that law.

Read More: NPR

VIDEO: Commissioner Kitzman on Junk Policies

January 11th, 2012

At Texas Watch, we hear from families virtually every day who have endured a never-ending line of home insurance rate increases. In fact, The Dallas Morning News reported yesterday that Texans are paying the highest home insurance premiums in the nation. Sadly, this isn’t new. Texans have paid among the nation’s highest rates for as long as anyone can remember. Homeowners are also angered by the growing number of junk insurance policies that are flooding the market.

Read More »

Research & Reports
Research & Reports

The Texas Watch Foundation, a non-partisan 501(c)(3) organization, conducts research and public education activities on consumer law, consumer protection and civil justice issues. Read More »

Court Watch
Court Watch

Court Watch, a program of the Foundation, documents the role and impact of the Texas civil court system on Texas families and Texas public policy. Read More »