What happened: A recent report by the U.S. Chamber of Commerce found that tort lawsuit costs burdened Texas households with $38 billion in 2022, driving up insurance premiums, business expenses and the overall cost of living.

Tell me more: Texas represents “one of the leading states in year-over-year growth in tort costs.” From 2016-2022, tort costs increased at a rate of 9.7%. 

• Rising litigation expenses in the state have forced businesses to raise prices, cut jobs or close, while also making insurance less accessible for individuals and employers.
• According to the U.S. Chamber of Commerce study, “the high tort costs in Texas can be attributed to several factors that influence the state’s legal environment, which is known for significant nuclear verdicts—large jury awards exceeding $10 million. These large awards not only increase the cost of individual cases but also contribute to higher insurance premiums and legal fees, which are ultimately passed on to consumers and businesses.”

In his own words: “Small businesses are burdened with soaring insurance premiums that jeopardize their survival, while the constant wave of lawsuits drives up the costs of essential items like food and medical care.” —Imad Sarkis, vice president of Exxpress Mart convenience stores and member of the Lone Star Economic Alliance (LSEA)

TLR Thoughts: One of TLR’s major priorities during the 2025 Texas Legislative Session is reining in the nuclear verdicts that are hurting small businesses and discouraging large corporations from allocating capital to Texas. To address this issue, TLR, alongside the Texas Trucking Association and the Texas Food and Fuel Association, created LSEA—a statewide business coalition comprised of more than 1,000 Texas individual citizens, companies and business associations working together to urge legislative reforms that will restore fairness and transparency to Texas’s legal system.

Read the full article here.

What happened: On Feb. 27, Texas state Sen. Bryan Hughes (R-Mineola) and state Rep. Morgan Meyer (R-University Park) filed companion landmark bills promising to reshape the American business landscape. Senate Bill (SB) 29/House Bill (HB) 15 aim to make Texas the preferred jurisdiction for legal domestication by proposing “a series of amendments to the Texas Business Organizations Code that would increase the certainty for how corporate decision-making is reviewed by the courts.”

Tell me more: With growing concerns over Delaware’s legal system becoming less reliable due to activist influence, SB 29/HB 15 seek to reinforce Texas as a hub for business excellence, innovation and growth.

Worth noting: The bills have garnered strong support from business leaders across Texas, including TLR, the Texas Stock Exchange (TXSE) and the Alliance for Corporate Excellence. 

• TLR Chairman Dick Weekley said of SB 29/HB 15: “This critical legislation will further solidify Texas as the nation’s leader in business and economic development—and will draw even more companies to Texas, empowering them to create jobs and continue the Texas Miracle. TLR applauds Senator Hughes and Chairman Meyer for their strong leadership and for their commitment to business excellence in the state.”

TLR Thoughts: SB 29/HB 15 will help ensure that Texas remains the premier state for corporate operations, fostering an environment of innovation, job creation and economic growth for years to come—and positioning Texas as a major challenger to the decadeslong dominance of Delaware’s business courts.

Read the full article here.

What happened: Leaders in South Carolina and Georgia are aiming to pass a series of tort reform bills this year that would make their respective states more economically competitive and a less costly place to do business.

Tell me more: 

In South Carolina, Senate Bill 244 is one of several tort reforms bills now being debated in the statehouse.

• South Carolina-based think tank Palmetto Promise Institute commented on the critical need to pass tort reform in the state, saying, “The lawsuit industry in South Carolina is out of control. Drive down any highway in our state, and you’ll see it lined with billboards for trial lawyers. The sheer quantity [is] a clear sign that something in our state is sorely wrong.”
• Governor Henry McMaster (R-SC) addressed the issue during his State of the State address on Jan. 29. He said: “Future economic prosperity requires that our state’s civil justice system allows fair and prompt enforcement of our laws and proper redress of injury … Individuals and businesses, both large and small, are becoming unduly penalized for the actions of others – too often through crippling financial judgments and skyrocketing insurance premiums.”

In Georgia, Senate Bill 68 – critical tort reform legislation – last week passed the State Senate on a 33-21 vote and will now move to the House. 

• According to the American Tort Reform Association, the bill addresses “numerous issues to improve the state’s civil justice system, including reforms to address ‘phantom damages’ and ‘jury anchoring’ as well as empowering juries with critical evidence regarding seat belt use in cases involving vehicle crashes.”

TLR Thoughts: More than 30 years after TLR first started reshaping Texas’s tort environment, South Carolina and Georgia are following in Texas’s footsteps in prioritizing tort reform. But our work in Texas is not done. This legislative session, TLR is advocating for legislative reforms that will restore fairness and transparency to the legal system, return stability to the insurance market and preserve Texas’s prosperous economy – the eighth largest in the world. Learn more at www.lseatx.com.

Read the full article here.

What happened: Uber has launched a seven-figure national ad campaign to push for reforms in insurance policies that are being exploited by personal injury trial lawyers and driving up users’ ride costs. 

Tell me more: Specifically, the San Francisco-based rideshare company is seeking legislative changes that would lower state-mandated insurance limits – and ultimately help “deter personal injury lawyers from taking advantage of lucrative policies and seeking high payouts.”

• The advertising campaign includes sponsored placements in national and local political outlets, including Politico’s New York Playbook newsletter. Uber is also running ads on social media networks, YouTube and TV streaming platforms, urging consumers to take action to keep their rides “affordable.”
• An advocacy website set up by Uber includes state-by-state data on how insurance costs factor into rideshare prices to raise awareness for its cause. For example, costs associated with Uber’s US rides insurance have increased by roughly 50% per trip in the last 3 years, even as Uber saw a decrease in the rate of overall crashes reported on the platform from 2017 to 2022.

In his own words: “… [The] legal system remains broken, allowing personal injury lawyers and a shady network of pain management doctors, chiropractors and third-party lenders to exploit rideshare insurance mandates for financial gain.” — Adam Blinick, Uber Public Policy and Communications

TLR Thoughts: Uber is not alone. TLR is working right now with a coalition of nearly 1,000 businesses, associations and individuals to address the “shady network of pain management doctors, chiropractors and third-party lenders” who are exploiting Texas’s courts and costing every Texas consumer money. The Lone Star Economic Alliance (LSEA) is working to put an end to the unfair litigation practices raising the price of the goods you purchase every day. Sign up here to join the fight.

Read the full article here.

What happened: California’s insurance market is collapsing due to price controls and regulatory burdens, while Florida’s legal reforms have stabilized its market and lowered insurance rates.

California’s crisis: Insurance Commissioner Ricardo Lara imposed a $1 billion surcharge on insurers and policyholders to prop up the failing state-backed insurer, FAIR, which is in danger of becoming insolvent.

• Strict regulations have prevented insurers from adjusting rates for wildfire risks, leading to massive losses and a potential credit rating downgrade for State Farm, California’s largest fire insurer.

Florida’s success: Florida’s 2022-2023 litigation reforms curbed “rampant lawsuit abuse” and helped head off an insurance disaster. In fact, these tort reforms helped attract 11 new insurers to the state and shift 477,000 policies from the state-backed Citizens Property to the private market. 

• As a result, major insurers have begun lowering rates, and auto insurance premiums are also declining.

TLR Thoughts: Florida’s success highlights the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation, but that has to be coupled with a legal environment that does not reward plaintiff lawyers for pursuing meritless lawsuits that cost all Texans money through increased costs for goods and services.

Read the full article here.

What happened: Texas is the fifth most regulated state in the nation, according to the most recent State RegData rankings.

Remind me: On Dec. 4, 2024, Gov. Greg Abbott launched the Small Business Freedom Council to identify regulatory barriers for small businesses. While this is a major step toward modernizing the state’s regulatory system, the 89th Texas Legislature has an opportunity to address specific areas where change is most urgently needed.

Tell me more: Excessive regulations, particularly in occupational licensing and permitting, create unnecessary hurdles for entrepreneurs and businesses. Proposed reforms include:

• A user-friendly website consolidating all business regulations in one accessible location.
• A transparent and regular review process to ensure regulations remain effective.
• A new regulatory division to help state agencies review regulations, improve their rules and eliminate inefficiencies.

In his words: “Reforming Texas’s regulatory system is one of the most impactful steps legislators can take to improve state government and ensure Texas continues to lead the nation. By fixing outdated regulations and removing unnecessary barriers, Texas can cement our status as a dominant economic force in the U.S. and around the world.” —Judge Jeff Rose 

TLR Thoughts: Texas’s excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. TLR will support legislation this session aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.

Read the full article here.

What happened: The New York Stock Exchange (NYSE) is establishing NYSE Texas in Dallas, further solidifying Texas’s status as a business and financial hub.

Remind me: The NYSE revealed its plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas, which will be a fully electronic equities exchange.

• Texas has become a top destination for corporate relocations due to the state’s business-friendly environment. Big-name companies, including Tesla and Hewlett Packard Enterprise, have already made the move.

Worth noting: Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well.

• University of Texas at Dallas Accounting Assistant Professor Kirti Sinha suggested that the presence of stock exchanges in Texas will boost investor confidence and attract more companies.

TLR Thoughts: Texas’s commitment to a pro-business environment continues to attract top companies and reinforce its reputation as an economic powerhouse. However, decades of regulatory accumulation still create challenges for businesses and consumers alike. To maintain its competitive edge, Texas must continue prioritizing smart regulatory reform, business growth and a fair legal climate that protects against excessive litigation.

Read the full article here.

What happened: A new survey from APCIA and Munich Re US revealed consumer perceptions of certain legal tactics used in civil litigation. The survey, conducted online by The Harris Poll among more than 2,000 US adults, examined views on lawyer advertising and high jury awards, among other topics.

By the numbers: 

• 67% supported restrictions on lawyer advertising to prevent excessive lawsuits.
• 68% agreed that high-value jury awards create expectations of large payouts.
• 68% indicated that nuclear verdicts would likely drive up insurance costs.

In his own words: “Reforms are needed to reduce consumer costs and improve insurance availability and affordability. The majority of Americans agree that these tactics are driving up insurance costs. We need state and federal policymakers to address legal system abuse to restore fairness and predictability of justice in the United States”—Stef Zielezienski, executive vice president and chief legal officer of APCIA

TLR Thoughts: Abusive litigation tactics are increasing the cost and availability of insurance for all Texans, and for all Americans. State and federal reforms are critical to restoring transparency, fairness and predictability in the United States legal system. 

Read the full article here.

What happened: A new report by the U.S. Chamber of Commerce found that Texans are paying almost $38 billion a year, or an extra $4,594 per Texas household, to compensate for astronomical tort costs in the form of skyrocketing insurance premiums and higher prices of most goods and services in the state.

Remind me: Tort costs include litigation expenses, claimant payouts and administrative fees.

• Texas has one of the highest growth rates in tort costs, largely due to multimillion or nuclear verdicts.

By the numbers: Lawsuits cost Texans more money every year; with the cost increasing at a rate of 9.7% a year from 2016-2022.

TLR Thoughts: The growing cost of lawsuits is putting Texas families and businesses under increasing financial strain. With insurance settlements and nuclear verdicts driving up costs, companies face higher operating expenses and consumers pay more for insurance and everyday goods. TLR is working to address the issue through the Lone Star Economic Alliance (LSEA)—a coalition of more than 900 Texas job creators, citizens and business associations from across the state.

Read the full article here.

What happened: As a founding member of the Lone Star Economic Alliance (LSEA), TLR is advocating for legislative reforms to address the rising cost of doing business in Texas—which threatens the economic health of businesses of all sizes, across all sectors.

• LSEA, BTA México and RioPlex joined forces to discuss the priority issue during a meeting at the border in late January. Nearly 50 transportation entrepreneurs from both sides of the border were in attendance.

Remind me: LSEA is a coalition of more than 900 job creators, citizens and business associations that have joined together to put a stop to abusive lawsuits that make it hard to do business in Texas and which needlessly increase the cost of consumer goods and services.

Worth noting: Rising insurance premiums, driven by lawsuits featuring inflated medical costs and misleading tactics, are draining resources businesses could use to hire new employees, expand facilities, pay taxes and even survive. 

TLR Thoughts: TLR is proud to support LSEA’s efforts to restore fairness in Texas courtrooms. By advocating for reforms to reduce the impact of excessive lawsuits on the cost and availability of insurance, TLR is helping promote Texas’s economic dynamism and job growth.

Read the full article here.

What happened: Meta is exploring moving its legal incorporation from Delaware to Texas, following its decision to relocate trust and safety teams to the state for increased neutrality.

Remind me: Meta, which owns Facebook, Instagram and WhatsApp, has been incorporated in Delaware since 2004, benefiting from that state’s respected corporate court system. 

• However, as Delaware courts have introduced uncertainty into corporate governance statutes, Texas has emerged as an increasingly attractive alternative, offering incentives, a newly launched business court specializing in complex disputes and a stock exchange. The Texas Business Court—which TLR helped create in 2023—is one of the most transformative changes to Texas’s legal system in decades.

Worth noting: Texas continues to attract businesses to the state, with major companies like Tesla and Oracle already making the move.

TLR Thoughts: As more companies seek out business-friendly states that foster innovation and minimize unnecessary legal costs, Texas has an opportunity to further solidify its role as a leader in corporate governance. This competitive advantage must be preserved by legislative action that ensures Texas’s lawsuit environment is fair and predictable and its regulatory climate reasonable.

Read the full article here.

What happened: A Houston mass tort attorney filed for Chapter 11 bankruptcy, listing over $200 million in litigation funding liabilities due to prolonged cases and rising debts.

Tell me more: Truett Bryan Akin IV, a co-founder of the mass tort firm AkinMears LLP, is struggling under financial pressure from delayed case resolutions and mounting litigation funding debt, with legal disputes over unpaid investor returns adding to the strain.

Worth noting: Lawsuits by litigation funders and other creditors are becoming more common as firms fail to repay mounting debts linked to long-running litigation. 

TLR Thoughts: This case highlights the growing financial instability within the mass tort industry, where excessive reliance on litigation funding feeds litigation but also creates unsustainable debt for law firms. It’s crucial to address the role of litigation funders in our litigation system, to restore balance, and to ensure that the legal system serves justice, not profit-driven agendas.

Read the full article here.