Editor’s Notes By Caryn Smith
ARAEditor@comcast.net
A Sign of the Times Calls for Action of Equal and Greater Effort
lmost 16 million lawsuits are filed in the U.S. every year. According to the U.S. Chamber of Commerce Institute for Legal Reform, in an October 2014 report, Unprincipled Prosecution: Abuse of Power and Profiteering in the New Litigation Swarm, “The swarm litigation phenomenon imposes huge burdens on the American econo- my. Most estimates suggest that the finan- cial levies alone exceed $100 billion.” Lawsuits in the auto recycling and auto insurance industries are on the rise. One select group who have proliferated some are the very people who are elected to protect – the State Attorneys General. The question that begs attention is who are they elected to protect?
A
The Institute states, “For the past twen- ty years, state attorneys general have
played an increasingly prominent role in enforcing laws and regulations affecting the business community. While often appropriate, state AG enforcement can also lead to inconsistent, duplicative and politically motivated enforcement of key laws and regulations. In addition, many state AGs hire outside plaintiffs’ lawyers for these cases, raising questions about conflicts of interest and political favorit- ism. ... While some cases may be legally appropriate, other state AG actions appear more about enhancing a state AG’s political standing. ... In most of these cases, it is the plaintiffs’ lawyers themselves who first conceive of bringing the lawsuit and select the companies to target.” Ultimately, “the real consequences – vir- tually always hidden from view – are
borne by customers, investors, and employees. The hundreds of millions of dollars that American businesses must spend to navigate and resolve redundant enforcement efforts produce no eco- nomic value, and these costs are inevitably passed on to consumers in the form of higher prices and the elimination of ben- eficial consumer products.”
Why am I writing about this? When you read the focus articles on page 32, you will understand. When you read the story on page 40, it will become crystal clear. The bright side is the ARA is on your
side. My takeaway from this issue: The best solution to the industry’s continued via- bility comes with industry-wide unity under certification and greater public awareness of the industry. What’s yours?
6 Automotive Recycling | March-April 2015
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