Harvey Peeler

We returned to Columbia for the 2011 session and have already taken strong steps toward government transparency. We’ve put more votes on the record and passed a new rule making the state budget available for 72 hours for public review before we can take it up. Still, many of people are fighting government reform. I just don’t know why. Voters across the state spoke with overwhelming clarity last year and told us that they want more on-the-record voting, spending caps, and efficient government through restructuring.

Folks, it’s time to move on. Let’s get the reform bills passed immediately so that we can concentrate on job creation. Government reform is the first step. We must make government more efficient so that we can keep taxes low. We must have greater spending transparency so that legislators aren’t wasting money. These actions will help fix our economy and recruit new companies to our state. But we’ve been concentrating on these issues for far too long. It’s time to act and get on to other matters like tort reform, one of the most important concerns impacting job creation in South Carolina.

Last year our state received a major business win by landing Boeing, and while there were many factors influencing the company’s decision to locate here, state leaders such as then-Secretary of Commerce Joe Taylor credit fundamental issues like tort laws and workers’ compensation as playing a key role in the location decision. It simply makes sense. If Boeing was content with workers going on strike or over-regulation from the government, they would have stayed back in Washington State.

In order to retain our current businesses like Boeing and attract new ones to the state, it is critical for our state to ensure a fair and predictable legal climate. This isn’t some sort of attack on lawyers — some of my best friends practice law. It is simply about protecting businesses from people trying to make a quick buck when they see a business with perceived deep pockets to plunder.

Having a state that has an “open for business” sign hung out front isn’t just benefiting us. Back in August, Oklahoma Senate President Pro Tempore Glenn Coffee said that one of the main reasons Boeing moved more than 500 jobs from California to his state can be chalked up to his state passing effective tort reform in 2008. Here at home, pro-business organizations have been asking for a new law, but despite our best efforts the trial lawyer lobby has been doing everything it can to shut down our work on the legislation.

Ask any business owner which issues have the biggest negative impact to their bottom line, and you are almost guaranteed to hear the response of tort claims as one of the reasons. In fact, six out of ten small business owners feel they would be able to increase their revenue if there was assurance that they would be protected from frivolous and unfair lawsuits.

Last year, small businesses in the U.S. paid $105.4 billion for tort liability. These costs are exorbitant, unreasonable, and create an unpredictable business environment in our state, especially during uncertain economic times when we cannot afford to scare off jobs or new investment.

Punitive damages reform is a top priority. Our neighboring southern states, North Carolina and Virginia, have limits on punitive damages that provide the predictability that the business community needs to thrive in our global economy. In fact, the majority of southeastern states limit the amount of punitive damages awards. We need our legal system to be fair and predictable like those of our neighboring states.

Five years ago, we were able to pass a bill on medical tort reform. A major concern then was that doctors’ insurance costs were pricing them out of the profession. The cost of insurance means just as much to a small business. Two years ago, the publication Insurance Journal said South Carolina is on the way to being where we need to be, but that we still have rules on the books that can make our state prohibitive to operate in. We have a lot of ailing, rural counties in our state, and giving businesses every chance to start up, expand, and hire more workers should be a top priority — not only in our present circumstance, but in every circumstance.

It’s time to restore common sense to the legal system in South Carolina. By doing so, we will lower litigation costs for South Carolina businesses, allowing them to focus on growing and creating new and better jobs for our citizens. I urge you to support civil justice reform in 2011 and reach out to your senator or representative to let them know that you think it’s time for our state to restore fairness and predictability to our legal climate.

- Harvey Peeler