[Congressional Record Volume 141, Number 43 (Wednesday, March 8, 1995)]
[House]
[Page H2888]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              COMMONSENSE PRODUCT LIABILITY REFORM NEEDED

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Kansas [Mr. Tiahrt] is recognized for 5 minutes.
  Mr. TIAHRT. Mr. Speaker, I want to carry on with what we talked about 
earlier this evening. It is natural for each of us to feel sorry for a 
person who suffers in an accident or mishap. One of our fundamental 
freedoms is the ability to bring suit in order to receive justice. When 
big corporations get sued, we often side with the individual against 
the companies. We think ``big bad corporation'' and ``poor 
individual.'' And when the big companies pay millions of dollars in 
settlements, we pretty much shrug and say, ``Well, they can afford 
it.''
  But that is not really true, Mr. Speaker, because the people who pay 
the price for those big settlements are the working people of America, 
and they pay it at the cash register. When companies are forced to pay 
outrageously high settlements, they eventually have to cut jobs, raise 
prices, and pass the costs on to the American people. This does not 
affect the rich as much as it affects the hard-working families who 
have to pay this price.
  Mr. Speaker, in 1994 Congress passed the General Aviation 
Revitalization Act. This act implemented a statute of repose of 18 
years on suits involving single engine airplanes, product liability for 
airplanes. That means that after 18 years, the legal liability of a 
manufacturer is greatly diminished. This act applies to planes with 
seating capacity of 20 or less. Cessna Aircraft Co. which is 
headquartered in Wichita, KS, was for years the world's leading 
producer of single engine aircraft. But because of aging airplanes and 
the litigation explosion that followed, America lost its aviation 
manufacturing advantage.
  In 1977, the single engine aircraft industry was producing over 
13,000 airplanes per year. But with the onslaught of the legal tidal 
wave, Cessna completely stopped manufacturing these planes by 1986. By 
1994, the entire industry produced less than 600 aircraft, less than 5 
percent of what was previously produced, and many of them came from 
outside America.
  Mr. Speaker, this is just not about making fewer airplanes, it is 
about losing American jobs. When the company is forced to pay sky-high 
legal judgments in cases where their legal liability is at best 
suspect, the working families are taking the hit and we are lining 
pockets of rich lawyers. What has happened to Cessna and other 
companies was that judges were holding them accountable and liable for 
aircraft malfunctions that could be reasonably accounted for in pilot 
error, maintenance failure, or simply just an old airplane
  Mr. Speaker, there comes a time when a plane is just old. Those who 
are flying these old airplanes were simply taking a risk. How can you 
blame the manufacturer for a properly designed airplane and properly 
built airplane?
  For the last 2 days we have been debating legal reform on the floor, 
and some have stated that this reform is unnecessary, that the system 
works fine the way it is. As we talk about product liability, I would 
like to offer what is happening in Independence, KS, as an example of 
what could happen in other industries if we could just pass the much-
needed product liability reform.
  Because we passed the statute of repose containing the General 
Aviation Revitalization Act in 1994, Cessna Aviation has announced it 
will build a new
 manufacturing plant in Independence, KS. Groundbreaking will be this 
April. Cessna intends to invest over $75 million in this community, and 
it is all the result of placing a reasonable limit on product 
liability.

  Cessna's production of single engine aircraft was destroyed in 1986, 
but because Congress took action in the next 2\1/2\ years, Cessna 
estimates they will produce 2,000 airplanes per year. Once again, this 
is not about more planes as much as about hope for southeast Kansas and 
for 7,000 people who are going to be employed over the next 5 years. 
The benefits of this plant will also be felt in Oklahoma and 
nationally. All told, it is predicted over 25,000 jobs will be created 
from product liability reform for airplanes. This is just one example 
that can happen when you rein in the lawyers and give manufacturers a 
chance to pass laws.
  This is clear Congress should pass commonsense product liability 
reform. Jobs and security for people across the Nation will be the 
result. People should have the right to sue. That is not the question 
here. The question is should there be reasonable limits on product 
liability, and the answer is yes.

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