Showing posts with label Tort Reform. Show all posts
Showing posts with label Tort Reform. Show all posts

Wednesday, March 4, 2009

Throw another Law on the Barbie


In the movie "The Philadelphia Experiment" the destroyer USS Eldridge is part of an experiment to make warships invisible and everything goes wrong. Well maybe Delegate Jeff Eldridge (D-Lincoln) needs to become invisible, because he has gone all wrong.

Delegate Eldridge has proposed a bill to ban the sale of Barbie. Yes, Barbie, the Mattel doll that is turning 50 years old this year. The same doll that has taught generation of young girls they could strive for more. In 1965 Mattel introduced Astronaut Barbie years before real life women were accepted into NASA's Space Program. Barbie has worn the uniform our all branches of our armed services, competed in the Olympics and been part of the corporate world. While Barbie may just be a doll in the world of the imagination she has shown lots of young girls what they could be and many have gone on to achieve more than even Barbie, because they dare believe in themselves.

Now it has not been reported if Delegate Eldridge is going base his bill off another law. One law that I did find that was similar was passed by Saudi Arabia in 2003 in which Saudi's outlawed the sale of Barbie dolls, saying that she did not conform to the ideals of Islam. Perhaps the real reason for outlawing Barbie in West Virginia is because she is shown taking career paths that are unlikely to be available in our state because of the tax and legal structure that keeps us at 50th in the states rankings?

Delegate Eldridge should be introducing legislation to improve the economic conditions in West Virginia by putting in a business friendly tax structure and revamping our legal system to attract businesses to the state. Let's create the economic opportunity for the young girls in this state to actually have the jobs that Barbie shows them are available, so they don't have to leave the state to find those careers. Instead changing West Virginia for the better, what the delegate proposes is to take away the young girls dreams of being something better because his party is unwilling to offer it to the people of this state and they don't want the people to leave to find it.

Wednesday, July 9, 2008

Whitewater Rafting Industry May Be Killed Soon

Now we shall see in a major way if West Virginia's lawsuit friendly legal system will devastate West Virginia tourism.

A rafting outfit based in Harpers Ferry recently saw a rash of injuries related to its operation. Amazingly, when people get on rafts that ride rough water at fairly high speeds sometimes they do get hurt. Sometimes people even die. Under West Virginia state law (at least for now) those who pay to raft assume the risk of participating. If you get hurt, tough luck. It's dangerous and you knew that when you started. Assumption of risk protects many industries in the United States. One cannot sue a baseball team if one gets conked in the head by a foul ball, for example.

The protection for rafting companies may not be as ironclad as it appears. Our creative trial lawyers have come up with a novel argument. Activities on rivers come under maritime law, a set of laws that apply most often to ships on the high seas. A cruise liner is responsible for the safety of those aboard to a certain extent, much more so than a rafting company. Maritime law does not absolve the private sector nearly as much.

Will the State Supreme Court buy these arguments? On the surface, it certainly should not. The rivers and streams of the state are controlled by the state. State law should certainly govern these activities. However, with our trial lawyer friendly Supreme Court, one never knows what decisions could emerge from the chief court in a state often called a "judicial hellhole."

If maritime law governance of state rivers is permitted, that means the end of the rafting industry in West Virginia. Insurance carriers will lift premiums considerably or drop companies in the state altogether. This concept forces the asking of wider questions. What about boating in general on the lakes and streams of the state?

The main problem here is greed. Too many people apply the word greed to corporations seeking to make a legitimate profit for their investment and work. Making profits that are earned is not greed. Greed is seeking money that one is not entitled to. In this country far too often we see tragedy as a lottery ticket. Someone gets injured or killed these days, you can bet there will be a lawsuit for an outrageous amount of money. Legal systems everywhere, not just in West Virginia, need to tighten up to protect legitimate business from foolish lawsuits.

Friday, March 21, 2008

The Energy Answer is Under Our Feet

Of all the states, West Virginia’s economy ranks at the bottom while we sit on mountains filled with energy in the middle of an energy crunch. Our economy should be booming, yet it is not. One reason is that we have a tendency to look to government for solutions and not to ourselves. Ronald Reagan once said, “Government is not the solution to our problem. Government is the problem.” His words hold true today. Everyday as we fuel up our vehicles paying close to $4 or more per gallon we are reminded government has not solved the problem, nor will it.

Government officials hold meetings and conferences, form committees and coalitions, but then all that happens is they talk about the problem and get their pictures in the media. One conference referred to the “New Technology of Coal Liquefaction.” For the record Friedrich Bergius developed one of the first processes for turning coal into gasoline almost 100 years ago.

Government doesn’t even know how old the processes are; are we sure we want it in charge?
One of the ideas being floated is a Private-Public Partnership, where government becomes a partner in the construction and operation of a coal liquefaction plant. The problem is government becomes the dominating partner in these ventures; the project becomes bloated, inefficient, and politically influenced to the detriment of the private business partner, the taxpayer and the consumer. History also reveals that the term “corporatism” was coined by Benito Mussolini to describe Private-Public Partnerships, which were used as a way to maintain government control. This is not a road we want to go down.

So what should be government’s role? Government’s first and most important goal should be to make as level and competitive playing field as possible. We must give West Virginia’s businesses a competitive advantage through business friendly tax and legal reforms. Half measures like eliminating the franchise tax by 2015 is not going to give us a competitive advantage anytime soon. It is like getting in a swimming pool one toe at a time instead of jumping in all at one time, getting wet and starting to swim. We must enact the needed tax and legal reforms wholly and fully now — get the initial shock out of the way and then begin to swim in increased jobs and tax revenue as our economy expands because West Virginia will be economically competitive.

So if government’s job should be to provide a level playing field for the competitors, then how do we move forward? The free market will always seek the lowest price and if fuel made from coal is cheaper, then the market will purchase fuel made from coal instead of oil. While we know we can currently make fuel cheaper from coal than oil, the problem is in regard to the cost and time of building the coal liquefaction plant. That cost is estimated at around $2 billion with about 2 years of construction. Some company has to be willing to risk the investment in the plant and take the chance that oil prices will remain high long enough for the plant to pay them back with interest.

Sometimes the only nudge the free market needs is the spark of an idea. Consider that CSX Corporation in 2006 purchased $1.2 billion dollars worth of fuel and you know from your own visits to the pump its 2008 numbers are substantially higher. What if the West Virginia coal Industry sits down with CSX Corp and says, since CSX already services 130 active coal mines and purchases billions of dollars worth of fuel, together we can build a profitable coal liquefaction plant. The plant could provide CSX with lower cost fuel, provide West Virginia coal producers with a new market outlet, provide high paying jobs across the board, give the state increased tax revenues and pump billions of dollars into the West Virginia economy.

As a state loaded with natural resources we have an opportunity, but only if we are willing to make the necessary political changes to make it happen. If we are not held back by Charleston’s bad economic policies, then West Virginia has an answer to the nation’s energy challenges. That answer is under our feet.

Monday, November 26, 2007

Chinese Toy problem and WV can't take advantage


It hasn't been that long ago that West Virginia was a major player in the toy manufacturing market. Louis Marx toy company was the largest in the world and at one time had its largest plant located in Glen Dale, WV.

If your 30 or older most likely you had a Marx toy as a kid growing up. I had a Big Wheel like the one in the picture.

All of that is gone now like much of West Virginia's manufacturing. Now many will say that Marx being sold and cheap Chinese imports played a part in the demise of the company. For the most part they would be right, but West Virginia's poor business climate played a part as well.

If West Virginia had a good business climate we could take advantage of the problems in the current toy industry. Right now the consumers are demanding US made toys for the safety of their children.

Toys are a business opportunity for a company in the United States, but West Virginia is the last place you would want to start a business. West Virginia has everything going for it to start a business the best people and workers in the nation, the best location for shipping, and abundant natural resources. The reason West Virginia is the last place in the US is because of the business climate. The following things need fixed to help our economy.

  • Tax Reform - West Virginia's tax structure runs off business and prevents new business from locating here. Since 1950 WV has fallen from 1.3% of the US to 0.6% of the US population because nobody wants to run a business here.
  • Worker Comp Reform - West Virginia has the highest workers comp rates in the nation, double the second worse (California). Those rates prevent businesses from locating here. Cost are simply to high.
  • Tort Reform - West Virginia has been identified as the Judicial Hell Hole of the US by the US Chamber of Commerce. That is not a dig on WV, that is a respected organization telling the people of this state what needs fixed. Foxnews on Thanksgiving Day made a comment about how bad the legal system was in WV.
It is not a secret what we need to fix. To most people around the US is obvious. The only ones that can't seem to see it are those in control of the state legislature. Those in control of the state legislature should listen to Winston Churchill when he said, "Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon." Let's trough off the restraints on the states businesses and let them pull the economic wagon forward.

Monday, November 19, 2007

Lisa Peana enters District 17 House Race

PRESS RELEASE Contact: Lisa Peana
Monday, November 19th, 2007 (304) 730 - 4599

PEANA ANNOUNCES CANDIDACY

Wayne County Republican to run on Tax Reform, Justice Reform and Sunshine Laws

Ceredo, WV – Lisa Peana has tossed her hat into the ring for a seat in the House of Delegats, District 17, Wayne County.

“We need a change in Charleston”, Peana announced, “ We need Fair Taxes for our citizens and businesses, we need severe Justice Reform to bring the courts back into balance and Sunshine Laws to allow transparency so the public knows how their government is operating.”

Peana is a Real Estate Agent for Metro Properties. As a business woman Peana has seen first hand the impact of unfair taxes, and unbalanced courts both on individuals and businesses. “We have a bloated government bureaucracy in West Virginia, and the only cure is to have comprehensive reform both in our tax code and judicial system. When the size of our government grows at a rate faster than the average household income, you have a problem.”

Peana vowed to fight for social issues as well. She said that she makes a promise to push for legislation that will protect the unborn, traditional marriage and gun ownership rights.

President of the West Virginia Republican Club, Peana is the wife of an Air Force veteran, Jamison Jeffrey. They have a son, Anthony who is in grade school.

Wednesday, August 29, 2007

The Tangible Benefits of Tort Reform and a Republican Victory in 2008


Everyone by now has probably heard of (and hopefully been outraged by) the multi-million dollar lawsuit filed by a West Virginian against McDonalds. Apparently they failed to hold the cheese on his burger.

West Virginia has a sad reputation in the business world as a "judicial hell-hole." The State Legislature has repeatedly failed to tighten up West Virginia's legal system. This results in a condition where corporations have to spend millions to fight frivolous lawsuits. Some simply decide to bypass the state altogether.

One almost did so. Oklahoma City based Chesapeake Energy planned to build its Eastern Division headquarters in Charleston. This would spearhead its efforts to develop West Virginia's natural gas resources. However a Roane County court awarded $404 million in damages to a group of people who claimed Columbia Gas shortchanged them in royalties. $134 million was for actual damages while $270 million was assessed to punish the company.

This verdict nearly convinced Chesapeake to bypass West Virginia. Governor Joe Manchin promised to convince the legislature to pass laws addressing royalty payments. The governor's entreaties seemed to work and Chesapeake plans to move into its new headquarters in 2009. It is obvious that businesses want to invest here and will come even if the governor only promises to try to help. Imagine what real tort and tax reform would do for the State of West Virginia.

Chesapeake Energy's move into Charleston does have benefits for all West Virginians. They will employ a substantial number of people in high paying jobs. Corporate headquarters will bring in white collar employment while developing the gas fields will increase opportunities for blue collar workers. The increased tax receipts and market ripple effects will strengthen the state as a whole. If Chesapeake has a positive experience in Charleston, that could convicne other corporations to locate major operations in West Virginia. The state has to approach this opportunity intelligently and use increased tax revenues due to Chesapeake Energy to benefit home grown business owners. Only with native capital and industry can West Virginia truly build a sound economy.

And only with a business friendly tort and tax system can we have a prosperous future. A Republican State Legislature is necessary for West Virginia to even start to pursue real reforms that will give us a strong and diverse economy. In a recent special session, Democrats in the State Legislature blocked the Manchin backed billto correct the royalty issue. Democrat Carrie Webster of Kanawha County among others expressed pride in their non-passage of this bill that will mean many new jobs in the state. No one should be surprised because Democrats have blocked development and investment in West Virginia for almost three generations now, even when urged to by more moderate members of their own party!

Without a Republican Legislature, West Virginia will continue to struggle. Period.