For
Immediate Release
Tuesday, September 14, 2004
Frivolous Enviro Lawsuits Hurt Economy,
Environment & Taxpayer
Washington,
DC - Today the House of Representatives passed H.R.
4571, the Lawsuit Abuse Reduction Act (LARA). While this legislation
largely targets baseless tort lawsuits, it will also make great strides in
stemming the tide of frivolous litigation initiated by environmental
fundraising organizations. Regardless of the plaintiff, frivolous
litigation chokes the legal system, kills jobs, and hampers economic
growth.
H.R. 4571 would restore mandatory sanctions for filing frivolous lawsuits
in violation of Role 11 of the Federal Rules of Civil Procedure, requiring
monetary sanctions against any party making a frivolous claim, including
attorneys' fees. It would also allow Rule 11's provisions preventing
frivolous lawsuits to apply to state cases in which a state judge finds
the case affects interstate commerce by threatening jobs and economic
losses to other states.
"Frivolous lawsuits filed under the guise of environmentalism actually
hurt the environment and hinder economic growth at the same time," said
House Resources Committee Chairman Richard W. Pombo (R-CA). "Because the
environmental organizations that file these suits are entitled to recover
taxpayer-funded attorneys' fees and court awards - win or lose -
environmental litigation has become
big business in America. The American taxpayer should not foot the
bill for this, nor should our economy have to suffer the dampening affects
these suits cause. These and other frivolous actions prevent the creation
of good jobs, which is why I was pleased to support this legislation
today."
Some environmental groups are largely unapologetic for this rampant,
frivolous litigation. For example, Peter Morton of the Wilderness Society
stated in a discussion on federal land use policy that, "If you bid on a
lease on public land, you can expect (environmental litigation)"
regardless of the merits. (Dow Jones, 01/20/2003)
The
assistant attorney general for the Justice Department's Environment and
Natural Resources Division has stated that there are
7100 active
environmental lawsuits being litigated in
the United States today. (Casper
Star Tribune, 06/16/2004)
* Frivolous Lawsuits Hinder the Recovery of
Endangered Species
The
flood of environmental litigation became so great that it bankrupted the
Fish and Wildlife Service's fund for critical habitat in May of 2003,
(U.S. Department of Interior). According to the Tulane University
Environmental Law Journal, "The entire ESA budget runs the risk of being
consumed by the bottomless pit of litigation driven listings and
designations. It does not end there. As Yogi Berra might say, the
bottomless pit is getting even deeper: as soon as the FWS makes a decision
driven by a court imposed deadline, it is being sued on the merits of that
decision." (16 Tul. Envtl. L.J. 257)
"This is where the FWS is today: the
decisions relating to ESA listings and designations, arguably the most
important decisions under the law because they trigger all other
protections, are driven solely by litigation. The FWS has lost all
flexibility in making its own determinations as to which species is most
endangered and should be listed first, and which habitat is most
vulnerable and should be designated as critical. Litigation-driven actions
prioritize only those species that have a plaintiff behind them (and often
a larger political objective), rather than those species that are most
endangered." (16 Tul. Envtl. L.J. 257)
* Frivolous Lawsuits Jeopardize Vital Forest
Health and Fire Prevention Projects
In
October of 2003, the U.S. General Accounting Office (GAO) found that 59%
of forest fuels reduction projects - performed to reduce the incidence of
catastrophic wildfire - were appealed by environmental organizations in
FY2001 and 2002. They were found to be overwhelmingly without merit, as
161 of 180 challenges were thrown out. The appeals delayed thinning
projects by at least 120 days in FY2001 and FY2002.
*
Frivolous Lawsuits Imperil Needed Energy
Production & Jobs
In
February of this year, seven environmental groups filed suit to stop the
federal government from producing much-needed petroleum in a National
Petroleum Reserve. The area was set aside in 1923 for that exact purpose.
Likewise, environmental groups have even sued to
halt "green" energy projects, including windmill farms and clean
hydroelectric power.
These frivolous lawsuits drive up the cost of energy for the American
taxpayer and threaten the very jobs America needs for a strong economy. "A
recent National Association of Manufacturers study found that, on average,
U.S. manufacturers spend more than 22 percent more on external, non-labor
costs than do their competitors in other leading industrialized nations.
Costs for health care, taxes, regulatory compliance, energy and
out-of-control litigation are
considerably higher in the U.S. than in countries where manufacturing is
growing. The costs are barriers to competitive success." (Grand Rapids
Press, 09/11/2004)
*
Taxpayers Foot the Bill for Frivolous
Lawsuits
According to the
Sacramento Bee: "Subsidized by federal tax dollars, environmental
groups are filing a blizzard of lawsuits that no longer yield significant
gain for the environment and sometimes infuriate federal judges and the
Justice Department. During the 1990s, the U.S. Treasury paid $31.6 million
in legal fees for environmental cases filed against the government."
The
Capital Research Center also found that environmental fundraising groups
have robbed the American taxpayers. For instance, a review of the Natural
Resources Defense Council's (NRDC) financial and court records reveal that
"a large percentage of its cases against the government agencies
eventually are thrown out of court." These lawsuits drain the resources of
the federal agencies and rob the taxpayer at the same time. Taxpayers bear
the court costs when the government is sued and if the organization wins,
the groups are rewarded financial judgments and court costs-all paid for
by the taxpayer. And to add insult to injury, many of these organizations
operate on taxpayer-funded grants to begin with.