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.
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