The lawyer's fees will come out of the settlement but they too have a cap, 40%. You mentioned but it should be highlighted that the cap is on the "pain and suffering" portion of the judgement not actual damages including but not limited to medical bills, trial costs and loss of current and future income. While I don't have a problem with a cap like this, I don't like that it's not indexed for inflation and has remaind $250k since its implementation in 1975.

>Some states have put limitations on medical lawsuits. There was a story recently in the news of a toddler who lost her legs and hands due to Streptococcus A infection that got worse while waiting 5 hours in the emergency room. Regardless of whether the hospital is found at fault, under California tort reform passed in 1975, the maximum the family would be able to recover for their pain and suffering is $250,000. Of course the lawyers fees come out of that amount as well don't they?
>
>http://www.huffingtonpost.com/2011/01/06/malyia-jeffers-sacramento-er_n_804880.html
>http://blogs.findlaw.com/injured/2011/01/toddlers-hand-feet-amputated-after-er-wait.html
>
>
>>I was watching CNBC a while back and a drug company (I can't remember the name) list on their financials a cost of 2 billion for R&D and 10 billion for estimated lawsuits. I know how to get drug costs down.
>>
>>>>>How the Pharmeceutical Industry Tamed HIV
>>>>>Presented by the American Council on Science and Health
>>>>>
>>>>>Summary :
>>>>>The campaign against HIV was waged mainly by the pharmaceutical industry. Although there were significant contributions from universities and the government, neither of these has the knowledge, resources or ability to develop drugs. Drug companies are often portrayed as “evil” or “greedy”, but this could not be further from the truth. As late as 1994, AIDS was a certain death sentence. Within a few years this was no longer the case, thanks to the dedication of a dozen or so companies working for a decade, often for little financial gain. Now, there are more than 20 AIDS medications on the market, and with improved modern therapies, life expectancy has increased markedly and hospitalizations have likewise decreased.
>>>>>
>>>>>http://www.acsh.org/docLib/20110214_AIDSFullText.pdf
>>>>
>>>>I've never thought of the pharma industry as "Evil". Greedy, maybe. They are in business for profit. That article and the summary makes it seem like the whole industry is comprised of good samaritans clamoring to rescue the afflicted.
>>>>
>>>>HIV is a global problem and those medications on the market are pulling in manifold billions of dollars. Where is all the clamoring on some of the smaller problems like the incurable and mostly fatal cystinosis from which only about 500 people in the U.S. suffer and only about 2000 world wide. Under the Orphan Drugs Act, somebody had to take it on, so there is one company working on it. No huge future profits like there was going to be with AIDS.
>>>>
>>>>I'm not knocking them. Pharma shouldn't be portrayed as any more evil than any other business that is supposed to be profitable. But certainly pharma should also not be portrayed as an altruistic industry. I mean "this could not be further from the truth"? A little over the top, I thought. And "often for little gain"? Sure, at that moment in time, but they weren't stupid. They knew what it would eventually be worth. And they were right.
>>>
>>>They knew what it would be worth, if they were successful. They also knew that they would be spending billions on research and the approval process with major losses if the results were not positive, as is the case with the majority of compounds. For all this work they get to enjoy their patents for 20 years (7-12 years on market after clinical trials and FDA approval). That's not greed, that's risk/reward.
>>>
>>>I've got an idea to lower drug costs. Speed up the approval process and let the companies who create the compounds keep their patents longer. I say treat them like a certain cartoon mouse, 75 years after the creator's death.