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In the News

In the News

What happened: Gov. Greg Abbott celebrated Texas’s record job growth, with significant increases in the labor force and the number of Texans working, adding millions of jobs under his leadership.

Tell me more: Texas’ commitment to business growth and workforce development has helped it surpass national job growth, strengthening its position as the nation’s job creator.

By the numbers: Texas’ labor force hit a historic high of 15,575,900.

  • 14,922,200 Texans are employed, including self-employed individuals.
  • Since 2015, Texas has added over 2.5 million jobs under Governor Abbott’s leadership.

TLR Thoughts: Texas’ job growth reflects the state’s pro-business environment, supported by lawsuit reforms that reduce frivolous litigation and allow businesses to thrive without excessive legal burdens. By maintaining a legal system that promotes fairness and efficiency, Texas remains the best state to do business, attracting employers and sustaining long-term job growth. 

Read the full article here.

What happened: Texas, known for its business-friendly reputation, is burdened by decades of regulatory accumulation that create significant challenges for small businesses and consumers.

Tell me more: Excessive regulations increase compliance costs, driving up consumer prices and limiting competition. 

  • Reforms in other regions show that reducing regulatory burdens can boost economic growth and enhance business opportunities.

By the numbers: Texas has 274,469 regulatory restrictions.

  • A 10% reduction could grow the economy by $52 billion by 2037.
  • A 40% reduction could yield over half a trillion dollars in economic growth.

TLR Thoughts: Texas’ 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. We will support legislation 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: Texas is not alone. Other states are experiencing lawsuit abuse, too. Indiana has enacted new tort reform measures, while Pennsylvania and Georgia are pursuing reforms to improve their legal environments.

Tell me more: Indiana now allows juries to consider the plaintiff’s seat belt usage in determining damages in an injury case and is splitting trucking cases into two phases: determining driver fault and damages first, then broader evidence on company misconduct in the second, if needed.

  • In Georgia, Gov. Kemp is calling for comprehensive tort reform, warning that excessive lawsuits are driving up costs and threatening businesses.
  • Reforms proposed in Pennsylvania include regulating third-party litigation funding and capping attorney contingency fees.

Worth noting: Texas set a precedent with its seat-belt-use disclosure law in 2003 and bifurcated trial requirements for trucking cases in 2021, solidifying its leadership in tort reform.

TLR Thoughts: Abusive litigation practices and the resulting economic consequences are not limited to Texas. That’s why TLR remains committed to passing legislation in Texas that eliminates abuses, makes our courts more fair and efficient and helps Texas maintain its economic leadership.

Read the full Indiana article here.

Read the full Georgia article here.

What happened: The Los Angeles wildfires have prompted discussions in Congress about expanding the National Flood Insurance Program to cover other disasters, shifting the financial burden to taxpayers across the nation.

California’s crisis: California’s insurance market is struggling due to years of suppressed rates, poor wildfire management and rising insurer liabilities.

Florida’s success: Florida tackled its insurance crisis with tort reforms that reduced litigation abuse, stabilized the market and attracted new insurers.

Worth noting: The 1945 McCarran-Ferguson Act grants states authority over insurance regulation, a system that has worked for over 80 years. 

  • Federalizing insurance places the burden of state-level mismanagement on taxpayers nationwide.

TLR Thoughts: California’s insurance failures show the consequences of mismanagement, while Florida’s reforms highlight the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation and encourages policies, but that has to be coupled with a lawsuit 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: Nuclear verdicts are driving up insurance costs, reducing coverage availability and increasing financial risks for insurance providers and policyholders.

Remind me: Median nuclear verdicts have more than doubled, rising from $21 million in 2020 to $44 million in 2023, with no signs of slowing.

Tell me more: The rise in nuclear verdicts is reshaping the insurance landscape.

  • Insurers are reducing coverage limits and increasing reserves to absorb financial risks.
  • Policyholders face higher premiums, limited access to adequate coverage and exposure to costs exceeding policy limits.
  • Small and medium-sized businesses are particularly vulnerable to the financial fallout from these awards.

TLR Thoughts: The rise in nuclear verdicts poses a direct threat to Texas’ economic stability. These runaway jury awards drive up insurance costs for businesses, increase financial uncertainty and hinder growth. Legislative action is essential to curb these excessive payouts and protect businesses and consumers from their widespread impact.

Read the full article here.

What happened: Mass tort litigation, driven by attorneys and profit-focused funders, overwhelms the federal civil system.

Tell me more: While the multidistrict litigation (MDL) process aims to streamline litigation, the MDLs created by federal courts often attract baseless claims and exploitative third-party funders, distorting the pursuit of justice.

By the numbers: MDLs account for 65 percent of the federal civil caseload, up from 38 percent a decade ago.

  • Excessive mass tort litigation costs taxpayers billions annually, with federal, state and local tax revenue losses estimated at $122.2 billion.

TLR Thoughts: Profit-driven mass tort litigation has become an economically draining industry that burdens taxpayers, hinders businesses, and undermines justice. Fortunately, Texas was ahead of the curve on this litigation epidemic. Through TLR’s efforts in 2003 to pass a tort reform bill that remains the most comprehensive bill of its kind every enacted by any state, Texas limited abuses of class action lawsuits and created an MDL process that is both efficient and seldom abused.

Read the full article here.

What happened: New York courts dismissed a plastic pollution lawsuit against PepsiCo, while Ford County, Kansas, filed one against petrochemical companies over misleading recycling claims.

Tell me more: New York’s ruling stresses that plastic waste issues require legislative action, not judicial. 

  • Ford County’s lawsuit claims petrochemical companies misled the public about plastic recycling.
  • Both lawsuits asserted a public nuisance claim.

Worth noting: The New York ruling sets a precedent that may limit future public nuisance lawsuits, while Ford County’s case highlights the fact that any city or county having a pro-lawsuit government can pursue a public nuisance action.

TLR Thoughts: As we have said many times before, public nuisance lawsuits are an attempt to circumvent state legislatures and regulate societal conduct through litigation. New York courts got it right, while the Ford County lawsuit demonstrates the breadth of the problem. Texas lawmakers have an opportunity to prevent similar nuisance claims from gaining traction in the state, ensuring that public policy is set by the legislature, not by county governments through lawyer-driven lawsuits.

Read the full New York article here.

Read the full Kansas article here.

What happened: Lawsuit abuse costs American households over $4,000 annually. State lawmakers across the country are taking stronger action to fix the problems.

Remind me: In 2022, the U.S. tort system cost $529 billion, averaging $4,207 per household.

  • Without reform, overall tort costs could surpass $900 billion by 2030.

Tell me more: Several states have enacted laws targeting predatory litigation practices.

  • The Wisconsin legislature passed a bill capping noneconomic damages in commercial motor vehicle lawsuits at $1 million, but the Governor vetoed it.
  • Florida outlawed inflated medical bills at trial and reduced the statute of limitations for filing lawsuits.
  • Montana now requires third-party litigation financiers to register and disclose their terms.

TLR Thoughts: Fueled by deceptive litigation tactics and third-party litigation financing, lawsuit abuse is harming businesses, consumers and the economy. TLR is committed to pushing for reforms in Texas to stop abusive tactics and ensure fairness in our legal system. By tackling predatory practices, we can create a stronger, more just environment for all Texans.

Read the full article here.

What happened: Eight individuals and two law firms in New Orleans have been indicted in a scheme involving staged car accidents and fraudulent insurance claims.

Remind me: Insurance fraud schemes like staged accidents are becoming increasingly common.

Tell me more: The indictment details a scheme where some participants deliberately caused accidents before fleeing the scene, enabling false insurance claims and lawsuits.

TLR Thoughts: The alarming rise of staged accident fraud in states like New York and Louisiana shows how easily fraudsters exploit the system for financial gain. But not only do they make money, they cost you money! Scams like staged accidents result in higher insurance premiums for all drivers. Let’s hope this kind of cheating stays somewhere else!

Read the full article here.

What happened: The Texas Supreme Court heard oral arguments in the Werner Enterprises case, where a 2018 $90 million nuclear verdict is being contested.

Remind me: This case stems from a 2014 crash in icy conditions near Odessa, Texas, where a passenger vehicle crossed the median into the Werner truck’s lane in oncoming traffic. 

  • Despite a state trooper’s report saying Werner could not have prevented the accident and the Werner driver did everything right, a jury found Werner 70% liable for the wreck.

Tell me more: Werner’s legal team contends that the verdict imposed a new duty on trucking companies that isn’t supported by existing precedents. 

Worth noting: The Admission Rule, which lets companies streamline lawsuits by accepting liability for employee actions, was ignored in this case, allowing the plaintiff’s attorneys to use irrelevant evidence to influence the jury’s verdict.

  • TLR filed an amicus brief in this case urging the court to uphold the rule.

TLR Thoughts: The Werner case highlights the dangers of nuclear verdicts, where plaintiff’s lawyers use emotional appeals and push expansive theories of liability to distract juries from the facts of the case. Cases like this are why the Lone Star Economic Alliance was formed—to advocate for a balanced legal system that ensures accountability when Texans are injured without allowing plaintiff’s lawyers to manipulate the legal process for profit.

Read the full article here.

What happened: Gov. Greg Abbott launched the Small Business Freedom Council to identify and reduce unnecessary regulations for Texas businesses.

Tell me more: Gov. Abbott emphasized fostering an environment where small businesses can thrive, calling on state agencies to identify barriers to success.

  • The Small Business Freedom Council will review these recommendations and provide a report for further action.

In his own words: “One of my priorities as Governor is to empower small business owners and entrepreneurs by providing the best environment for small business growth… Together, we will ensure that Texas remains the best place to live, work, and start a business,” —Gov. Greg Abbott

TLR Thoughts: Gov. Abbott’s initiative marks meaningful progress toward fostering small business growth in Texas. However, even the most business-friendly regulatory environment won’t be enough to protect small businesses from the crippling effects of meritless lawsuits and exploitative legal tactics. It’s critical to pair regulatory reform with a strong commitment to ending abusive litigation tactics that are resulting in company-crippling judgments.

Read the full press release here.

What happened: The Texas Business Court is redefining corporate litigation with a focus on efficiency, innovation and attracting high-profile business disputes.

Remind me: The court was established to address high-dollar, complex business-to-business cases, providing faster rulings and specialized expertise, and officially began operations on Sept. 1, 2024.

Tell me more: The business court offers Texas businesses a more efficient, specialized and transparent approach to resolving disputes than filing in a traditional district court. 

  • Its innovative model could position Texas as a serious challenger to Delaware’s long-standing dominance in corporate governance.

TLR Thoughts: The Texas Business Court is a bold opportunity for the state to lead in corporate governance. Looking ahead, the Legislature can do more to improve the business court’s operations in the upcoming legislative session, as well as bolster the corporate governance laws that fall within the business court’s jurisdiction.

Read the full article here.