Tort Reform

Robert Levy from the Cato Institute objects to the federal government putting caps on damage from litigation. He says that there are reforms being enacted at the state level so federal intervention is unnecessary. Levy also believes that litigation shouldn't be recognized as interstate commerce because litigation isn't a commercial transaction, but a judicial matter. While we're on the subject of tort reform, whatever happend to the enacting of a loser-pays system, which I think would help. It was a part of the "Contract with America", right?