As Texans gather around their tables this Thanksgiving, we’re reminded that what makes our state special isn’t just its economic strength — it’s the families, communities, and shared values that hold Texas together. Holidays have a way of sharpening that perspective. They remind us why ensuring fairness, accountability, and stability in our civil justice system matters so much: because every dollar wasted on lawsuit abuse is a dollar families can’t put toward groceries, travel, or time together.
This week’s headlines underscore why vigilance matters. From eye-opening national estimates of the “trial lawyer tax,” to new reforms lowering insurance rates in other states, the message is clear: smart lawsuit reform protects families’ pocketbooks.
States that have taken decisive action to curb abusive litigation are seeing meaningful savings for consumers. And here in Texas, the work of maintaining a balanced, predictable legal system remains as important as ever.
At TLR, we are grateful for the opportunity to continue this mission, protecting fairness, defending consumers, and keeping Texas on a path that allows families to thrive. From all of us, thank you for your partnership, and Happy Thanksgiving.
Committee to Unleash Prosperity
What Happened: A new analysis estimates that legal system abuse now drains $500 billion a year from the U.S. economy — roughly 2% of national GDP. Tort costs are rising at 7.1% annually, more than double the inflation rate, driven in part by a surge in third-party litigation funding, where outside investors bankroll lawsuits for profit. These lawsuit investment funds secured $2.3 billion in new agreements in 2024, pushing total assets to $16.1 billion. Read more.
Tell Me More: Third-party litigation funding is accelerating the filing of speculative claims and masking who truly benefits from litigation. These opaque financial structures allow investors — not injured parties — to steer litigation strategies, inflate settlement demands, and weaponize the courts for financial gain. Federal lawmakers are calling for reform, including the Litigation Transparency Act of 2025, which would require disclosure of these arrangements in federal civil cases so defendants, judges, and the public can see who really stands to profit.
States that have strengthened their legal systems, like Florida, are already seeing results: reduced frivolous filings, lower insurance costs, and greater stability for consumers.
TLR Thoughts: Legal system abuse is not just a courtroom problem — it is an economic problem that every family feels through higher prices, higher insurance premiums, and fewer choices. Texas has made major strides over decades of reform, but the rapid rise of third-party litigation funding, nuclear verdicts, and manufactured medical damages shows the work isn’t done. Maintaining a fair, transparent, and predictable civil justice system is essential to protecting Texas consumers and preserving the Texas economic model that continues to outperform the nation.
Protecting American Consumers Together
State Farm customers in Georgia are seeing more than a 10% auto insurance rate reduction following legal reforms aimed at curbing lawsuit abuse. Protecting American Consumers Together’s Executive Director Lauren Zelt puts it plainly:
“Thanks to Governor (Brian) Kemp and the legislature’s reforms, Georgia families are finally seeing real relief from rising prices. PACT is working to make sure consumers across the country experience the same affordability gains, and it starts with ending lawsuit abuse.”
Lawsuits and excessive court awards are costing the average American household an extra $4,594 in hidden “tort taxes.” That’s money that could be going toward groceries, travel with family, and a more affordable Thanksgiving.
Texans for Lawsuit Reform is committed to protecting fairness in our courts, curbing lawsuit abuse and building a civil justice system that empowers families and businesses.
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