CIVIL JUSTICE REFORM CREATES JOBS, SPARKS INNOVATION

Washington, DC, November 10, 1999 --

Washington, DC -- The economic value of civil justice reform was dramatically illustrated recently by a report on the effects of the General Aviation Revitalization Act (GARA) signed into law by President Clinton five years ago.

The report, by the General Aviation Manufacturers Association (GAMA), showed that the law transformed a moribund industry.

Before the law, domestic aircraft manufacturers were failing and losing market share to foreign competitors. Some 100,000 jobs were lost and production had plummeted.

As a result of the act, the report to the President and Congress showed that 25,000 new jobs have been created, aircraft production is up 100 percent, exports have more than doubled, new products are being developed and the ranks of student pilots are increasing.

"GARA has truly revitalized the light aircraft industry, as advocates claimed it would five years ago. At that time, opponents, including personal injury lawyers and professional consumer advocates believed otherwise. This report proves that they were wrong." said Sherman Joyce, President of the American Tort Reform Association. "GARA set an 18-year outer time limit on lawsuits against makers of these small planes, which can remain in use for up to 40 years."

Joyce said that the basic concept of the law -- protecting an industry from an unlimited and open-ended threat of lawsuits -- should and can be spread to other industries. GARA’s success is a model for the effectiveness of basic civil justice reform.

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The American Tort Reform Association (ATRA) is the only national organization dedicated exclusively to tort and liability reform through public education and the enactment of legislation. ATRA's membership includes non profits, small and large companies, as well as state and national trade, business, and professional associations.