Gnawing at Their Restraints

Last Monday, March 16, 2009 - while much of the country was up in arms about AIG bonuses - some folks were hard at work setting the stage for more larceny. In a bit of theatrics Barbara O'Brien described as "faux populism", Senator John Cornyn (R-Exxon) held a Senate Republican Conference hearing to Protect Small Businesses from Lawsuit Abuse. Cornyn summoned Ted Frank from the American Enterprise Institute to help with the Protecting.

Senator Cornyn has taken substantial contributions from a donor who might want to avoid being sued for lead paint poisoning. In 2005, Ted Frank represented Merck in Vioxx litigation.

With the nation at the precipice of economic collapse after an orgy of deregulation, these gents want to undo one of the remaining restraints on corporate excess.

It's not just about toxins like lead or asbestos or Vioxx. Consider lawsuits brought under the False Claims Act, often initiated by whistleblowers. Compare the billions of dollars of taxpayer money recovered under the False Claims Act to the $165 million in AIG bonuses. And imagine what would happen without this protection.

The gnawing at the restraints doesn't stop.

P.S.: Antidotes to tort reform spin: Justinian Lane, TortDeform.