WASHINGTON – According to the latest annual report of “Judicial Hellholes” released today by the American Tort Reform Association, Pennsylvania courts have garnered the No. 4 ranking for jurisdictions considered unfriendly to businesses – falling three places from the top spot on the report, where they had been listed for the preceding two years.
ATRA’s yearly report stacks up where companies are perceived not to be given a fair shake in court.
In the 2019 report, the Philadelphia County Court of Common Pleas was ranked No. 1, and not only retained that spot last year, but added the Supreme Court of Pennsylvania to stand alongside it.
The report cites “mass tort litigation flooding the Philadelphia County Court of Common Pleas’s Complex Litigation Center”, loose application of venue laws, the concept of comparative fault being in jeopardy and liability-expanding decisions targeting businesses, as evidence justifying the Philadelphia County Court of Common Pleas and the Supreme Court of Pennsylvania earning a No. 4 ranking on the list.
“The reigning No. 1 Judicial Hellhole, the Philadelphia County Court of Common Pleas and Supreme Court of Pennsylvania, once again lands near the top of the list in 2021. Its drop to the No. 4 spot is not due to reforms or progress made in the state, but indicative of the number of issues plaguing California, New York and Georgia. Additionally, shutdowns resulting from the COVID-19 pandemic led to a decrease in activity,” the report stated.
“The Philadelphia County Court of Common Pleas continues to be a preferred court for pharmaceutical mass tort cases and asbestos litigation. Plaintiffs from across the country flock to the Court of Common Pleas because of its reputation for excessive verdicts and its ‘open-door’ policy to out-of-state plaintiffs. This policy clogs the courts, drains court resources and drives businesses (and jobs) out of the state. The Supreme Court of Pennsylvania joined the Court of Common Pleas atop the list in 2020, and the Court continues to expand liability for businesses and municipalities across the state.”
In May, the U.S. Supreme Court decided against reviewing a $70 million compensatory damages verdict in favor of Tennessee plaintiff Andrew Yount against Janssen Pharmaceuticals, a Johnson & Johnson subsidiary.
Previously, a Philadelphia court found the company liable for not warning of certain risks, such as gynecomastia, associated with anti-psychotic drug Risperdal, when it was used off-label to treat behavioral conditions in adolescents.
The state Supreme Court refused to consider Janssen’s appeal of the verdict in Yount’s favor, leading it to then seek relief from the U.S. Supreme Court.
Currently, there are more than 7,300 Risperdal cases lodged in the Philadelphia County Court of Common Pleas’s Complex Litigation Center.
In addition to high-dollar mass tort verdicts, the “Judicial Hellholes” report contained other notes as to why two Pennsylvania courts landed in the No. 4 spot on the list this year, including but not limited to the following:
• Local trial lawyer ads increasing more than 40 percent between 2016 and 2020, while spending on those ads increasing more than 17 percent. According to ATRA, trial lawyers spent almost $26 million on 325,000 ads in Pennsylvania through June of this year;
• Signs that forum-shopping could return to medical malpractice cases with a discussed proposal of easing restrictions on the filing of such litigation;
• A number of liability-expanding decisions from the Supreme Court of Pennsylvania, which have been “blatantly ignoring, re-interpreting, or re-legislating statutes passed by the General Assembly and signed into law by the governor”, marking a “significant sea change” in the state Supreme Court’s rulings.
• Philadelphia continuing to be a magnet for asbestos litigation. ATRA explained that there were 209 asbestos lawsuits filed in Philadelphia in 2020, with over 600 such cases pending in the Philadelphia County Court of Common Pleas as of last month.
ATRA opined that the higher volume of asbestos filings was subsequent to the Supreme Court of Pennsylvania’s decision in Roverano v. John Crane, Inc., which nullified the proportional “Fair Share” approach to liability, in favor of equally dividing liability among the number of defendants found responsible in a given lawsuit.
The Philadelphia County Court of Common Pleas and its Complex Litigation Center have long been a sanctuary for out-of-state plaintiffs. The percentage of claims belonging to out-of-state plaintiffs has traditionally been in the high 80s.
The remainder of ATRA’s list of “Judicial Hellholes” is as follows:
1. California – ATRA pointed to California’s increasing volume of Proposition 65 litigation burdening businesses, the state’s Lemon Law being a financial boon for plaintiffs’ lawyers, an “activist” attorney general continuing to push an expansive view of the public nuisance law and being a hotbed for asbestos litigation, in its reasoning for including the state on the list.
“The Golden State” once again regains its position as the No. 1 Judicial Hellhole thanks to its relentless pursuit of liability-expanding principles. California’s appellate courts are the first to hold e-commerce companies strictly liable for products sold on their sites. Baseless Prop-65 lawsuits thrive in courts and the volume of litigation continues to skyrocket,” per the report.
“Small businesses are weighed down by frivolous Private Attorney General Act (PAGA) and Americans with Disabilities Act (ADA) lawsuits and the state’s unique Lemon Law provides windfalls for plaintiffs’ lawyers. In addition to the troublesome courts, the activist attorney general continues to push an expansive view of public nuisance law and the legislature ignores the need for reform and pushes a liability-expanding agenda.”
California was ranked No. 3 in last year’s report.
2. New York – ATRA cited a proliferation of no-injury class actions and ADA lawsuits, along with it being a preferred jurisdiction for asbestos litigation and a site of ongoing legal skirmishes between climate change activists and energy companies, for its second-place ranking in this year’s report.
“The ‘Empire State’ is mounting a strong challenge for the No. 1 spot as the state’s leadership seems intent on creating the worst legal climate in the nation. The gap between California and New York is narrow, as the two jurisdictions battle it out for the most ‘no-injury’ class action lawsuits and the most claims under the ADA. New York also has an activist attorney general that is on the front lines of the battle between climate change activists and energy companies. The state is a preferred jurisdiction for asbestos litigation and, like California, the legislature ignores the need for reform and continues to push a liability-expanding agenda,” the report says.
New York was also ranked No. 2 in last year’s report.
3. Georgia Supreme Court – ATRA highlighted Georgia’s expansion of bad faith liability and a similar expansion of its perspective towards out-of-state businesses, among other reasons for its No. 3 ranking this year.
“The significant deterioration of the ‘Peach State’s’ civil justice system has propelled the state Supreme Court to its highest-ever ranking at No. 3. The Georgia Supreme Court eliminated apportionment of fault in certain cases and expanded bad faith liability for insurers. It also adopted an expansive view of jurisdiction of its courts over out-of-state businesses. Nuclear verdicts are bogging down business and third-party litigation financing is playing an increasing role in litigation,” per the report.
Moving up three spots, Georgia was ranked No. 6 in last year’s report.
5. Cook, Madison & St. Clair counties, Illinois – ATRA states more litigation connected to the Biometric Information Privacy Act (BIPA), continuing to be a preferred jurisdiction for asbestos cases and its legislature pushing a “plaintiff-friendly, liability-expanding agenda” to be on the list this year.
“This trio of Illinois counties is a magnet for asbestos litigation and ‘no-injury’ lawsuits stemming from the state’s Biometric Information Privacy Act (BIPA). Making matters worse, the Illinois General Assembly is one of the most plaintiff-friendly legislatures in the country and Gov. J.B. Pritzker supports a liability-expanding agenda to the detriment of Illinois citizens and small businesses,” the report states.
In another move three spots up the list, Cook, Madison and St. Clair counties were ranked No. 8 in last year’s report.
6. Louisiana – ATRA referenced a veto of legislation to curb deceptive legal advertising practices as one of the chief reasons that the Bayou State landed on its annual list.
“The optimism expressed in last year’s Judicial Hellholes report that Louisiana’s litigation environment was moving in the right direction faded in 2021. State leadership impeded progress and the state’s civil justice system failed to improve. 2021 brought a veto of a much-needed bill to rein in deceptive lawsuit advertising practices and coastal litigation continues to drain state resources. Judicial misconduct appears to run rampant across the state and the investigation continues into a massive scheme to defraud commercial truckers and insurers in Louisiana courts,” ATRA said.
Moving down one spot, Louisiana was ranked No. 5 in last year’s report.
7. City of St. Louis – ATRA labeled the City of St. Louis as a “perennial Judicial Hellhole” and while it noted some civil justice reform has taken place, it was not enough to prevent St. Louis from evading inclusion on its annual list.
“A perennial Judicial Hellhole, the City of St. Louis once again finds itself on the list; however, the ‘Show-Me-Your-Lawsuit’ state has made important progress through legislative reforms. While the legislature has prioritized civil justice reform, there is more work to be done. The City of St. Louis Circuit Court is notorious for allowing blatant forum shopping and permitting ‘junk science’ to permeate the courtroom. Additionally, there is uncertainty around the state’s standard for punitive damages, which is dangerous in a court known for excessive awards,” per the ATRA report.
Maintaining its spot on the list, St. Louis was also ranked No. 7 in last year’s report.
8. South Carolina Asbestos Litigation – ATRA states after its first appearance on the list last year, South Carolina’s Asbestos Litigation docket remained on its radar due to alleged abuse of discovery procedures, inappropriate judicial sanctions, low bars for presenting evidence and a perceived favoritism towards courtroom plaintiffs.
“A newcomer to the Judicial Hellholes list in 2020, South Carolina’s consolidated docket for the state’s asbestos litigation has developed a reputation for discovery abuse, unwarranted sanctions, low evidentiary requirements and multi-million-dollar verdicts. As a result, the state has become a hot spot for asbestos claims. While the volume of litigation dramatically decreased this year, in large part due to COVID-19 shutdowns, the court’s tendency to favor plaintiffs continues,” according to the report.
South Carolina dropped down four spots on the list, as it was ranked No. 4 in last year’s report.
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com