Date: Tue, 14 Sep 2004
From: Resources Communications
Subject: Frivolous Enviro Lawsuits Hurt Economy, Environment &
Taxpayer
For Immediate Release
Tuesday, September 14, 2004
Contact Brian Kennedy or Matt Streit at (202) 226-9019
http://resourcescommittee.house.gov/
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)
Critical Habitat for Endangered Species: Bankrupt...Literally
"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.
GAO Study: Forest Fuels Reduction Projects Stalled By
Environmentalists
* 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)
Activists Oppose Energy Exploration in the National Petroleum Reserve
* 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.
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