Following Lawsuit Abuse Awareness Week, momentum for meaningful reforms continues to swell across the country. The reason is clear: from soaring insurance rates to mounting lawsuit threats against small businesses, and even farmers, the fallout from lawsuit abuse touches every part of our economy.
As other states face growing economic pressures from unchecked litigation, Texas is working hard to maintain a fair and balanced civil justice system. This week, we’re watching two cautionary tales from Louisiana and Washington State—states in which “jackpot justice” continues to stand in the way of fairness and growth.
The examples highlighted in today’s newsletter underscore why Texas must stay vigilant in protecting the reforms that keep our courts fair, our businesses strong and our economy leading the nation. Read on for what we’re watching this week.
What Happened: Last week, states in every corner of the nation observed Lawsuit Abuse Awareness Week. While Florida and Georgia are taking action to reform the civil justice system and prioritize families, Louisiana continues to struggle against “phantom damages,” outrageous verdicts and government-sponsored litigation. Notably, one such “nuclear verdict” in Louisiana recently reached $745 million in damages. Read More.
By the Numbers: Excessive tort litigation costs Louisiana residents a hidden “tort tax” of more than $1,000 per person (or nearly $4,500 for a family of four) annually and an estimated 40,000 jobs. In fact, according to the American Tort Reform Foundation, Louisiana is ranked the 10th-worst Judicial Hellhole in the United States.
TLR Thoughts: Without commonsense reform, Texas may descend down the same path as Louisiana. Texas families currently pay nearly $4,600 annually in hidden lawsuit costs, and the tenuous legal environment in Texas is beginning to revert to the “Wild West” era of litigation that defined the Lone Star State in the 1990s – before TLR helped pass some of the nation’s most comprehensive lawsuit reforms. More work remains to keep Texas affordable for hardworking families – including the need for legislative reforms to address the inflation and manipulation of medical damages by certain personal injury trial lawyers.
What Happened: In Washington State, as State Representative Mary Dye puts it, “agriculture is not just an industry but the foundation of our communities.” Unfortunately, according to the Washington Farm Bureau Legal Foundation, “today’s farm and ranch families face increasing regulatory and legal threats. These pressures endanger their livelihood, diminish their capacity to produce quality local food, and hinder their ability to pass their farm on to the next generation.” Read More.
Tell me more: Farmers are being targeted in the same way small businesses are, through an increasingly litigious environment where unscrupulous lawyers exploit loopholes for profit. The abuse of the Equal Pay Opportunities Act (EPOA) is a prime example. Over 215 EPOA lawsuits have emerged, some filed by actors with no genuine interest in the jobs involved.
By the Numbers: A recent analysis estimates that Washington State residents pay a $3,504 “tort tax” per person annually, while over 160,000 jobs may be lost to rampant litigation.
TLR Thoughts: Washington State’s struggle with a hostile legal climate serves as a warning to Texas lawmakers: without needed lawsuit reform, lawsuit abuse threatens to break the backbone of Texas’s economy. Texas must remain vigilant—prioritizing reforms that protect hardworking Texans, not rewarding opportunistic trial lawyers.
Texas insurance premiums are up nearly 25%, and abusive lawsuits are part of the reason. Multimillion-dollar “nuclear verdicts” drive up costs for families, small businesses and job creators — costs that ripple across every sector of the economy.
TLR is working to restore balance and protect Texans from the hidden costs of lawsuit abuse. When courts focus on fairness instead of “jackpot justice,” we all benefit from lower costs, stronger businesses and a more competitive Texas.
