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.

• Ford County’s action is the first county-level lawsuit of its kind, following California’s similar state-level 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.

• Remember this viral staged crash in New York?

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.

What happened: Home and auto insurance rates have surged across Texas, leading to bipartisan discussions on how to tackle the growing crisis.

How we got here: Texas’ legal environment—plagued by nuclear verdicts and unnecessarily inflated settlements—has significantly contributed to rising insurance costs. 

Tell me more: Everyone is facing increasing insurance premiums, from families looking for homeowners or personal automobile coverage to small businesses looking for general liability coverage.  

In his own words: “We’re No. 1 in what we call ‘nuclear verdicts… We do need to look at lawsuit reform.” –Rich Johnson, Insurance Council of Texas

TLR Thoughts: Excessive lawsuits and inflated verdicts and settlements force insurance companies to raise premiums or leave the market altogether, leaving consumers with higher costs and fewer choices. In response to this, Texans have joined together to form the Lone Star Economic Alliance to advocate for reforms to curb litigation abuse and bring transparency to litigation. Lawmakers can restore balance to the system and ease the financial burden on Texans by passing common-sense reforms in 2025.

Read the full article here.

What happened: Maine is the latest state to file a climate nuisance lawsuit against major oil companies.

Tell me more: This follows a wave of similar lawsuits, including California’s case against ExxonMobil, showcasing a growing strategy of using the courts to circumvent the appropriate legislative and regulatory processes and impose energy policy.

Worth noting: Many climate nuisance lawsuits have been delayed due to legal challenges over whether they should be filed in state or federal court. Courts have ruled in the past that these lawsuits are not an appropriate use of the public nuisance doctrine.

• Still, the ongoing debate highlights the legal uncertainty these lawsuits create for the energy industry, which is critical to our national security and countless jobs.

TLR Thoughts: The public nuisance lawfare problem isn’t going away. Texas lawmakers must act to protect the state’s energy sector and economy from this growing trend and keep public policy decisions where they belong—within the legislature.

Read the full article here.

What happened: Climate activists are increasingly turning to lawsuits against energy companies, prompting debates about whether courts are the appropriate venue for such policy-driven issues.

Tell me more: Frustrated with politics, activists are suing energy companies over climate issues. But critics say these cases push courts into policy roles meant for lawmakers.

• Recent cases argue that state laws are being improperly used to regulate global energy and climate policies, creating conflicts with federal priorities and regulations.

Worth noting: The U.S. Supreme Court is currently considering petitions related to climate cases, including a challenge to a Hawaii Supreme Court ruling that allowed such lawsuits to proceed. A ruling could set a critical precedent for future climate litigation.

TLR Thoughts: Courts should not be used to impose public policy decisions better suited for state legislatures, Congress and regulators. The Texas Legislature can ensure our courts remain focused on delivering justice—not crafting policy—by passing common-sense reforms to rein in the use of broad public nuisance lawsuits that legislate through litigation.

Read the full article here.

What happened: Climate nuisance lawsuits targeting oil companies, if successful, could potentially extend to other industries with high carbon emissions.

Tell me more: Other cases following a similarly opportunistic model motivated by potential financial gains could expand nuisance claims to utilities, steel, plastics, cement and ammonia industries.

• We’ve already seen nuisance litigation spread to car manufacturing, packed goods companies and beef producers.

Worth noting: Over two dozen states and local governments are currently pursuing billion-dollar climate-related lawsuits against oil companies.

• Fragmented state rulings could disrupt regulatory frameworks, complicate environmental policy and undermine economic and job considerations in policymaking.

In her own words: “Trial attorneys are not going to be limited by a view of what’s good policy as they’re filing lawsuits. They’re going to look at who has deep pockets or who is someone that I feel my law firm could prevail against.”—Gale Norton, former U.S. interior secretary

TLR Thoughts: A patchwork approach to climate policy through state-by-state lawsuits could devastate America’s energy industry, eliminate thousands of jobs and weaken national energy security. It’s only a matter of time until this expansive litigation playbook is used against other industries. Texas lawmakers should act to curb the overreach of public nuisance lawsuits before they disrupt more sectors of our economy.

Read the full article here.