Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

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For the Record

When Enough is Enough

Unlike us here at TLR, most people don’t think about tort reform or the legal system on a daily basis (or even a monthly basis, for that matter). That is until lawsuit abuse flares up to impact something in their daily lives.

Enter Apple and the Eastern District of Texas.

Reports from industry publications recently sounded the alarm that Apple had announced plans to close its Plano and Frisco stores in April and open a new store at the Dallas Galleria. Apple has offered new jobs to the employees who are affected by the store closure.

This is huge news for a company with a broad footprint in Texas. According to TechCrunch, “Apple today employs 1,000 people in the Dallas-Fort Worth area, which has been an increase of 33 percent in the past five years. The company also recently invested almost $30 million in its Dallas area stores.”

All of this begs the question, why go to the trouble of closing two busy stores in one of the fastest growing counties in the nation, creating a massive inconvenience for countless loyal customers who regularly frequent them and the employees who count on them for their livelihoods?

The answer is simpler than you think. The Plano and Frisco stores fall squarely within the U.S. District Court Eastern District of Texas, a notorious haven for patent trolls. Coincidentally, the new store at the Galleria falls outside the Eastern District’s boundaries. Apple is forced to make this expensive move because of abusive patent-troll litigation in a particular federal judicial district.

Patent lawsuits are a federal issue, and under federal law, those cases can be filed in districts where the defendant has a “regular and established place of business.” That means that simply by having retail stores in the Eastern District of Texas, Apple was making itself vulnerable to abusive, costly and time-consuming patent lawsuits.

The Dallas Morning News editorial board put it this way, “Patent trolls build their entire business model around exploiting patent infringement laws and devising creative interpretations of intellectual property regulations to assert a claim to a patent. The mere act of defending or settling claims costs companies, the economy and consumers billions of dollars in what amount to legalized shakedowns… Our problem with trolling is that it goes beyond the time-honored practice of lawyers seeking the best place to litigate. Trolling siphons wealth and opportunity from those who create it and turns the court into a lottery ticket and the jurisdiction into the equivalent of a speed trap. The threat of a patent troll tying up entrepreneurs or companies in court chills innovation.”

Abusive lawsuits affect our lives every single day in countless ways, large and small. In this case, rather than continue to expose itself to unnecessary litigation risk, Apple removed itself from the situation. In some cases, companies build the cost of litigation into the cost of their products and services—the Tort Tax, which we’ve discussed before in this blog.

This is yet another clear example of why the laws our state and nation enact must be written to ensure they don’t open up new avenues for abuse. And it is why the judges we elect at the state level and who are appointed at the federal level must remain committed to impartially applying those laws as written.

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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

A great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session. ... See MoreSee Less

A  great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session.Image attachment
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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

In case you missed it: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: bit.ly/3ZHdEva ... See MoreSee Less

In case you missed it: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: https://bit.ly/3ZHdEva
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Texans for Lawsuit Reform

4 days ago

Texans for Lawsuit Reform

Public nuisance lawsuits have expanded beyond their traditional use into a way to regulate through litigation. TLR is dedicated to preventing the public nuisance doctrine from becoming a catch-all cause of action used to impose one person’s political views on society as a whole. Read and share: bit.ly/3ZHdEva ... See MoreSee Less

Public nuisance lawsuits have expanded beyond their traditional use into a way to regulate through litigation. TLR is dedicated to preventing the public nuisance doctrine from becoming a catch-all cause of action used to impose one person’s political views on society as a whole. Read and share: https://bit.ly/3ZHdEva
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lawsuitreform avatarTLR@lawsuitreform·
3 Feb 1621598756633288707

A great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session. #txlege

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lawsuitreform avatarTLR@lawsuitreform·
3 Feb 1621539669228879873

#ICYMI: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: https://bit.ly/3ZHdEva

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lawsuitreform avatarTLR@lawsuitreform·
2 Feb 1621267523164426242

TLR is working to make the Texas legal system fair, efficient, and accessible for all. Learn more: #txjustice #txcourts

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TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

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Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
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