US JURY AWARDS AFFECTING INTERNATIONAL BUSINESS

This story indicates that massive legal judgments in the US not only inhibit business at home, but also in other countries.

Falkland Island Tour Operators' Insurance Worry

Chief Executive Chris Simpkins has met with senior government officials and representatives of the tourist industry in an attempt to find a solution to the lack of insurance available to tourism businesses in the Falkland Islands.

For more than a year tour operators have faced problems in obtaining insurance, but Simpkins said the government, in conjunction with Falkland Islands Tourism, is working to find a solution. He explained,

"The problem arises primarily, but not solely, because of the nervousness of insurers about the size of claims and awards being made by courts in the United States."

"It does not relate to any particular issue in the Falklands but is world-wide. We obviously hope that we can find a solution quickly but I cannot speculate on the outcome."

Yesterday he confirmed, "Tour operators are continuing discussions with possible insurers and I have made contact with Caribbean Alliance Insurance who have experience of these problems elsewhere and are examining whether they can provide cover." [minor grammatical changes - ed.]

I imagine there are other examples where the US tort law is impacting foreign countries.