COMMITTEE ON COMMERCE, NINETY-NINTH CONGRESS SECOND SESSION ON PRODUCT LIABILITY REFORM PROPOSALS MAY 19 AND 20, 1986 Printed for the use of the Committee on Commerce, Science, and Transportation 65-879 O U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1987 For sale by the Superintendent of Documents, Congressional Sales Office Opening statement by Senator Kasten.. Opening statement by Senator Hollings. Baldwin, M. Dana II, president and chief executive officer, Oliver Machinery Co., Wood Machinery Manufacturers of America: Niels J. Reimers, director, Office of Technology Licensing, Stanford University, accompanied by John Preston, director, Office of Technology Licensing, MIT: John M. Reiff, senior vice president, Law and Personnel, Coleman Co., Inc.: James K. Coyne, president, American Tort Reform Assn.; and Larry McClean, vice president, Carrico, Hon. Harry L., Chief Justice, Supreme Court of Virginia; J. Kendall Few, counsel, Greenville, SC: Deborah Chalfie, legislative director, HALT; Hugh E. Reynolds, Jr., president, Federation of Insurance and Corporate Counsel; and Alfred W. Cortese, Jr., representing the National Coalition for Finch, Johnny C., Senior Associate Director. General Government Division, GAO, accompanied by Natwar M. Gandhi, Group Director of Tax Policy; William W. Suttle, senior vice president, American Insurance Assn.. accompanied by Peter A. Lefkin, counsel; Leslie Cheek, vice president, Federal Affairs, Crum & Forster Insurance Co.; J. Robert Hunter, president, National Insurance Consumer Organization, accompanied by Jay Angoff, IV Hitchcock, Christopher, director, Public Relations, Crawford Fitting Co Joseph, vice president, Domestic Policy, U.S. Chamber of Commerce F. Connor, representing the National Association of Manufacturer Kimmelman, legislative director, Consumer Federation of America. Goffman, staff attorney, Public Citizen's Congresswatch; Linda legislative counsel, Consumers Union; and Pamela Gilbert, staff attorn Public Interest Research Group Prepared statements: Mr. Connor.. Mr. Goffman McConnell, Hon. Mitch, U.S. Senator from Kentucky. Prepared statement. Meese, Hon. Edwin, Attorney General, Department of Justice; accompa Schwartz, Victor E., counsel, on behalf of the Product Liability Allian ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS Calabresi, Guido, dean, Yale Law School, letter Chemical Manufacturers Assn., statement... statement Pharmaceutical Manufacturers Pritzker, Robert, chairman, Advisory Committee, Product Liability R statement PRODUCT LIABILITY REFORM PROPOSALS MAY 19, 1986 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The subcommittee met, pursuant to notice, at 2 p.m., in room SR-253, Russell Senate Office Building, Hon. Bob Kasten (chairman of the subcommittee) presiding. Staff members assigned to these hearings: David Zorensky, staff counsel; Andrew Koppelman, professional staff member; and Amy Bondurant, minority staff counsel. OPENING STATEMENT BY SENATOR KASTEN Senator KASTEN. The subcommittee will come to order. Today the Consumer Subcommittee begins hearings on product liability reform proposals. Our only witness today, the Secretary of the Department of Commerce, the Honorable Malcolm Baldrige, will speak on the product liability problem that faces us today, and the administration proposal which I have introduced as an amendment in the nature of a substitute to my own product liability bill, S. 100. Mr. Secretary, we look forward to your testimony this afternoon. You have been a strong leader in the fight for product liability reform, and your testimony here today along with that of Attorney General Meese tomorrow is itself clear and, I believe, compelling evidence of the administration's commitment to take action on this issue, and to become actively involved in the reform process. Clearly, the time for action on this issue is now. Our committee has been studying the current product liability system for a full 5 years, and I believe an overwhelming majority of my colleagues on both sides of the aisle now recognize that this system is urgently in need of reform. I only hope that we are not too late to act this year, because I think a legislative solution is necessary this year before the Congress adjourns. A recent survey in Wisconsin revealed that a full 10 percent of small businesses in Wisconsin might be forced to close if the liability crisis is not solved and solved soon. I am proud of the small businesses of my State. I am proud of the products that they make and the services they provide. With rare exception the products manufactured in Wisconsin are among the highest quality and safest products made anywhere in the world, yet many of these manufacturers cannot find, let alone afford, product liability insur ance. |