What Is Torte Reform

Tort reform refers to proposed changes in the civil justice system that would reduce tort litigation or damages. Tort is a system for compensating wrongs and harm done by one party to another's person, property or other protected interests (e.g. reputation, under libel and slander laws). Tort reform advocates focus on personal injury in particular.

In the United States tort reform is a contentious political issue. US tort reform advocates propose, among other things, procedural limits on the ability to file claims, and capping the awards of damages. According to Forbes reporter Daniel Fisher, tort reform is "A catchall phrase for legislative measures designed to make it harder for individuals to sue businesses."[1]

In Commonwealth countries, those initiating liability lawsuits must pay court costs as well as the legal expenses of defendants should they lose, thus greatly reducing the number of such cases. On the other hand, there are proposals to replace tort compensation with a social security framework that serves victims without respect to cause. In 1972, New Zealand introduced the first universal no-fault insurance scheme for all accident victims, which provides benefit from the government run Accident Compensation Corporation without respect to negligence. Its goal is to achieve equality of compensation, while reducing costs of litigation. In the 1970s, Australia[2] and the United Kingdom drew up proposals for similar no-fault schemes,[3] that were later abandoned.