What happened: A new study prepared for Citizens Against Lawsuit Abuse (CALA) by Waco-based economic research firm The Perryman Group found that Texans pay an average of $1,725 more for goods and services every year as the cost of lawsuits and massive court awards are passed on to consumers.
Tell me more: This $1,725 lawsuit tax—which drives up the cost of everything Texans buy, from groceries to housing to insurance—is higher than the national annual average lawsuit tax of $1,666 per person.
- Between 2009 and 2023, Texas led the nation in the number of “nuclear verdicts” (i.e., jury verdicts of $10 million or more). According to the CALA study, a total of 207 nuclear verdicts were awarded in Texas during that time, totaling more than $45 billion—costs that are often ultimately borne by consumers throughout the state.
By the numbers: The lawsuit tax is even higher in specific regions of the state:
- $2,746 per Texan in Austin-Round Rock-Georgetown;
- $2,483 per Texan in Dallas-Fort Worth-Arlington; and
- $2,373 per Texan in Houston-The Woodlands-Sugar Land.
In his own words: “We must preserve access to courts for legitimate lawsuits, but today’s get-rich-quick lawsuit environment threatens access and drives up costs for everyone.” – Bobby Jenkins, chairman of Citizens Against Lawsuit Abuse of Central Texas
TLR Thoughts: The study comes as the Texas Legislature is considering legislation (SB 30/HB 4806) that would address unreasonable court awards known as “nuclear verdicts,” which are driving up costs for businesses and consumers and impeding economic growth in the state. Notably, the legislation has been named a priority bill by Lt. Governor Dan Patrick. SB 30 will be heard by the Senate State Affairs Committee next Monday, March 31, 2025.
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