• • DEPARTMENT OF COMMERCE December 13, 1988 The Honorable William P. Clements, Jr. Governor of the State of Texas P.O. Box 12428 Capitol Station Austin, Texas 78711 Dear Goveçxlor ments, ,102 I am writing as Chairman of the Department of Commerce and as a concerned businessman. I am concerned about a situation that is severely restricting economic develo ment and business across Texas The liability situation has reached crisis proportions. It is severely restricting business and our ability to compete in the international arena. The full implications for our society of a civil justice system that is out of control are delineated in a new book by Peter Huber entitled Liability: The Legal Revolution and its Consequences. I am taking the liberty of enclosing a copy of the book and reviews which appeared in Forbes and the Wall Street Journal. Huber paints a sobering picture of the devastating economic impact that the existing tort system is having on the business community and the public at large. He refers to the costs of the system as, "one of the most ubiquitous taxes we pay, now levied on virtually everything we buy, sell, and use." Not only are costs being driven up, but the fear of lawsuits stifles innovation, new products, bold research, and economic development. I believe this issue is of such importance to our national well-being that it must be addressed by a broad coalition of business executives from every industry. That is why I have Ittaken this unusual step of sending Peter Huber's book to you at his time. Enclosure 410 East Fifth Street Telephone: 512/472-5059 Sincerely, ED VETTER Chairman Post Office Box 12728 Telex: 766 488 Austin, Texas 78711 Fax: 512/320-9674