Session Report—Day 1
The Lege started its 140-day session yesterday. The House elected Dustin Burrows Speaker. Read more
The Shocking Economic Costs of Mass Tort Litigation
What happened: Mass tort litigation, driven by attorneys and profit-focused funders, overwhelms the federal civil system. Read more
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 ever enacted by any state, Texas limited abuses of class action lawsuits and created an MDL process that is both efficient and seldom abused.
Will Nuclear Verdicts Impact the Insurance Industry in 2025?
What happened: Nuclear verdicts are driving up insurance costs, reducing coverage availability and increasing financial risks for insurance providers and policyholders. Read more
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.