By Doug Alexander, Executive Director, Partnership for Commonsense Justice

April 6, 2009

I don't know anything about the management of the WoodSongs Old-Time Radio Hour, or the Kentucky Theatre for that matter.

I occasionally watch a WoodSongs broadcast, particularly if Riders in the Sky are scheduled to appear, and I have seen a lot of movies at the Kentucky, especially during the summer classics series.

I do know that the resurrection of the Kentucky Theatre into a valuable downtown asset and the perseverance of Michael Johnathon and WoodSongs are feel-good stories about succeeding against the odds. In a world that can't seem to move fast enough into the future, both derive their charm and some degree of their success by celebrating the past.

Success in business is usually a combination of vision, innovation, leadership, good customer relations and sound management practices — qualities that WoodSongs and the Kentucky appear to have in abundance.

For the lack of a lift from the city, however, the future of WoodSongs at the Kentucky appears to be threatened by a very modern fear of many small businesses, and in this case risk managers at city hall: the ever-present threat of a potentially crippling lawsuit.

The problem as described in the story by Rich Copley would appear to be a simple one. WoodSongs has been using a lift owned by the city to change lights in the ceiling of the State Theatre where it originates its radio, television and Internet broadcasts in front of a live audience. WoodSongs needs the lights and, without the city's lift which lives conveniently right next door, is faced with added time and expense of providing its own equipment every time a light goes out.

The risk management department of the Lexington Fayette Urban County Government has determined that WoodSongs' use of the lift creates a liability exposure for the city.

Unfortunately, the ability of the city to provide the lift and WoodSongs' effort to produce a quality product have come face-to-face with that segment of the legal industry that derives its income primarily from suing individuals and businesses and their insurance companies.

Liability insurance is a necessary and responsible cost of doing business and the courts are a legitimate venue for resolving disputes, especially when there is evidence of neglect or negligence. However, in today's climate, the courts are too often seen as a road to riches on the backs of blameless businesses.

As a result, fear drives costs up and occasionally good companies out of business. It also forces risk managers to end an efficient use of available resources.

In Kentucky the Administrative Office of the Courts data show that the civil caseload in circuit courts increased by over 75 percent from 2001 to 2008 and by 60 percent in district courts. By comparison, the criminal caseload in the circuit courts increased by only 37 percent and declined in district courts.

The Washington-based Klemm Analysis Group estimates that 52 percent of civil lawsuits target small businesses. Most never go to trial, many are settled out of court and all cost the defendants time and money even if the suit is eventually found to be meritless.

Frivolous lawsuits in the United States are estimated to cost billions of dollars. They are a drain on the economy and make it more difficult for legitimate lawsuits to be handled in a timely and efficient manner.

Neither the city, the management group of the Kentucky Theatre nor WoodSongs is at fault over the lift issue. All are trying to do the right thing I am sure. Certainly the Kentucky Theatre and WoodSongs are simply trying to manage competitive businesses in a difficult economy.

But all are victims of a legal environment and court system that make it too easy and too profitable for the innocent to be victimized.