The Burden of Lawsuit Costs on Texas Households Continues to Rise

What happened: A new report by the U.S. Chamber of Commerce found that Texans are paying almost $38 billion a year, or an extra $4,594 per Texas household, to compensate for astronomical tort costs in the form of skyrocketing insurance premiums and higher prices of most goods and services in the state. Read more

Remind me: Tort costs include litigation expenses, claimant payouts and administrative fees.

• Texas has one of the highest growth rates in tort costs, largely due to multimillion or nuclear verdicts.

By the numbers: Lawsuits cost Texans more money every year; with the cost increasing at a rate of 9.7% a year from 2016-2022.

TLR Thoughts: The growing cost of lawsuits is putting Texas families and businesses under increasing financial strain. With insurance settlements and nuclear verdicts driving up costs, companies face higher operating expenses and consumers pay more for insurance and everyday goods. TLR is working to address the issue through the Lone Star Economic Alliance (LSEA)—a coalition of more than 900 Texas job creators, citizens and business associations from across the state.

Most Americans Support Limits on Lawyer Ads and High Jury Awards

What happened: A new survey from APCIA and Munich Re US revealed consumer perceptions of certain legal tactics used in civil litigation. The survey, conducted online by The Harris Poll among more than 2,000 US adults, examined views on lawyer advertising and high jury awards, among other topics. Read more

By the numbers: 

• 67% supported restrictions on lawyer advertising to prevent excessive lawsuits.
• 68% agreed that high-value jury awards create expectations of large payouts.
• 68% indicated that nuclear verdicts would likely drive up insurance costs.

In his own words: “Reforms are needed to reduce consumer costs and improve insurance availability and affordability. The majority of Americans agree that these tactics are driving up insurance costs. We need state and federal policymakers to address legal system abuse to restore fairness and predictability of justice in the United States”—Stef Zielezienski, executive vice president and chief legal officer of APCIA

TLR Thoughts: Abusive litigation tactics are increasing the cost and availability of insurance for all Texans, and for all Americans. State and federal reforms are critical to restoring transparency, fairness and predictability in the United States legal system.