Friends,
All week, lawsuit reform advocates have been sounding the alarm about lawsuit abuse happening in state and federal courts. As Lawsuit Abuse Awareness Week comes to a close, I want to be sure you see some of the stories that are driving change in legislatures across the country — and why Texas needs to take action in 2027 or let the Texas Miracle become unaffordable for the Texans who helped build it. For the future of Texas,
Ryan Patrick
CEO | TLR
Before we get into this week’s round-up, a quick reminder: the General Election is coming up soon, and Early Voting is right around the corner. Don’t get left behind this election cycle. Make a plan, and cast your ballot to Keep Texas Strong!
Here are some helpful links to help you cast your ballot by Tuesday, November 3.
Make a Plan, Cast Your Vote
Confirm You’re Registered
Mailing Your Ballot? Track your ballot
Voting in person? Find Your Polling Place
Pick a Date to Vote
EARLY VOTING October 19-30
ELECTION DAY Tuesday, November 3
Federal Car Crash Lawsuits are Outpacing The Number of Serious Car Crashes
Motor vehicle lawsuits have reached a 30-year high, as a new study highlights a growing pattern of lawsuit abuse that is raising insurance and liability costs. The Insurance Information Institute and Casualty Actuarial Society reviewed data from 2015-2024 and found a historic increase in federal car crash lawsuits, even as severe accidents decreased. The study estimates that excess litigation adds $44 billion, or about 30%, to the $143.6 billion total automobile liability inflation.
“The continued growth in litigation is another indication of how legal system abuse is adding to auto liability costs, ultimately affecting premiums.”
— Sean Kevelighan, CEO, Insurance Information Institute
Here are some of the top lines from the study:
Settlements > Juries: 52.4% of federal lawsuits related to car crashes were settled, avoiding courts and juries over that 10-year period. Car crash cases received a judgment from the court about 7% of the time—more than a quarter of all federal civil cases receive a court judgment.
Average Payout Nearly Doubled: Average awards back in 1995 were around $377,000; today, the average payout is $681,000.
Fault vs. No-Fault States: Car collision lawsuits increased about equally from 2015-2024: 4.6% in No-Fault States versus 6.2% in tort states.
Federal vs. State Payouts: Reforms are critical at the state level because while federal courts accounted for a little over $1 billion of awards from car crash lawsuits over the decade, state courts paid about $42.77 billion over that same period.
Wall Street Investors Getting Called Out; Ohio ushers in ban on foreign-litigation funders, investors
“Maximizing investor value, or return on investment, should not be the goal of litigation. It should be the pursuit of justice.” That’s a damning statement from a New York-based attorney — a state among the nation’s top Judicial Hellholes — calling out Third-Party Litigation Financing (TPLF), the secret money behind America’s biggest lawsuits.
This sweeping article thoroughly defines TPLF, clearly distinguishing the problems with domestic funding from the national security concerns of foreign-backed funding. The article also explains why state lawmakers are stepping into the gap left by their congressional counterparts.
“… We have a strong agritech, life sciences, defense and finance sectors and there’s a lot of intellectual property that comes out of it. If these third parties get access during discovery, it’s just wrong. We don’t want that to be part of North Carolina’s fabric.”
— Gary Salamido, President & CEO,
North Carolina Chamber of Commerce
North Carolina is the first state to ban all TPLF in state courts. Ohio is among the latest states to ban both foreign TPLF and ties to foreign-backed investments. The Texas Legislature has used this tactic before in other areas, such as restricting foreign land ownership. However, Texas is now one of a handful of states that have no laws banning foreign or domestic TPLF.
Want to know more? Slate Money recently hosted a podcast, “Chasing Ambulances on Wall Street,” that dives deeper into TPLF and the private investors funding lawsuits against some of America’s largest employers. Also, this week Omni Bridgeway, a US-based funder, announced it secured its second $1 billion fund and has already distributed more than $300 million to back lawsuits.
Fraud Files from New Jersey, Louisiana, and California
NYC Mayor Suing PI Law Firms under RICO Statute
New York City Mayor Zohran Mamdani’s administration is suing a personal injury law firm for phony injury claims. … Businesses in New York and across the U.S. cite litigation abuse as one of their top problems. Dubious claims increase legal and insurance costs. These are passed onto consumers or, in the case of New York City and other localities, taxpayers.
Louisiana Family Torched Rental Homes For Years In $1 Million Insurance Scam, Feds Say
13 homes. Nearly identical lists for items lost. $1 million in bogus claims. In the end, prosecutors found one family tied to it all in West Monroe.
California Cracks Down: $25K Fine for Unlawful Solicitation
Governor Gavin Newsom signed a new law that sanctions lawyers caught paying people to submit claims or recruit clients. The law passed after allegations surfaced that a California firm funded middlemen who paid people to submit claims in a $4 billion lawsuit against Los Angeles County.
New Trial Date Set for Operation Sideswipe Murder Case
A disbarred attorney at the center of the staged accident ring in New Orleans is set for retrial after a jury deadlocked in August on murder charges. Sean Altfortish is one of two suspects on trial for the alleged murder of a federal witness who participated in the scam to intentionally crash vehicles into 18-wheelers to spur a lawsuit. Here’s a timeline of the Operation Sideswipe saga.
Today, the family, friends, and colleagues of Justice Kristin Guiney gathered for a funeral and celebration of her life. Her untimely passing last week sent a shock through our community, including in my own family. I first met Kristin 20 years ago at the Harris County DAs office. We became friends when we ran and served together as district court judges. We took different paths in 2016 but kept in touch as friends and neighbors, she lived around the corner from me. Please join my family and our community in continuing to pray for Kristin’s family, her children especially, and those who are mourning the passing of a great friend and fellow Texan.
