oldbaldguy said:
Probably the smartest thing for somebody to do is to take the carb business off-shore, like maybe to Canada, Germany, Mexico or somehwere in order to avoid the nonexistent liability crisis. This is pure BS. You gotta wonder when we, the people, are gonna stand up and say enough is enough. Additionally, wouldn't the tort reform that covers manufacturers of older airframes apply here as well? It may be too soon to get too exercised over this, but this is can't be good for us.
Tort reform? Unlikely with the current crowd in Washington and the crowd about to get the Presidency. As long as it is their money that fuels the campaigns you are more likely to see little green men before you see tort and campaign finance reform.
It's a matter of economics. Overhead for a law firm is expensive. Most lawyers have to bill out a minimum 1,200 hours at an average of $135 an hour to stay alive. The pressure to sustain the billables is tremendous. In a law firm your career in that firm depends on it. Imagine an entire firm of 50 or so lawyers trying to generate that each day...
In short, somebody has to pay for their existence. Any form of practice where you can get an insurance company to pay out is a bonus.
Here in Maine we have more lawyers per person than just about any state in the nation. Ironically, the bulk of legal work in this state is indigent criminal defense and poor paying domestic relations work. A lot of the lawyers just scrape by. They don't get paid for a lot of work they do.
Maine only has one city--which is actually a suburb of Boston--that has a healthy economy. It has several large law firms, ranging from 15 to 50 lawyers. You do the math and it is mind boggling that there are clients that can sustain those endeavors. The reality is that there aren't enough clients.
I think it can be said that the aviation tort reform act of the early 90s has been a success and a failure. It has been a success from the standpoint that it revitalized the general aviation manufacturing market. It has been a failure inasmuch as the lawyers quickly found someone else to sue--FBOs and vendors, thereby increasing the expense of owning an airplane.
Again, someone has to pay the never ending meter at a law firm. It is an endless and vicious cycle that is a drain on any economy.
Interestingly enough, I note that our state, which has been under one party leadership for almost 8 years, is now Number 2 in tax burden and Number 48 in economic development nationwide. I would argue that that is a very poor track record. Our latest economic salvation--casinos.
In Maine aircraft ownership is disfavored as a tool for economic growth, with all purchases taxed. This is a tremendous disincentive to locate a corporate airplane here.
It will be interesting to see what the aviation groups do to try and ease the crisis with Precision. It's likely they will have to self-insure, passing the cost on to us and the caveat that one suit and they are done, done, done with the carb business.