Dan Savage, a columnist and host of the Savage Lovecast, commented on Texas’s legal system, stating that it allows plaintiffs to collect court costs for successful suits while denying the same to defendants. He argued this creates incentives for vindictive and frivolous litigation.
“The person who sues someone they suspect of ‘aiding or abetting’ an abortion recovers court costs if they win,” said Savage. “But the person they sued doesn’t recover their court costs if they win. Texas is incentivizing a flood of frivolous, vindictive lawsuits.”
According to Baker Botts, third-party litigation funding (TPLF) has significantly changed the financing of lawsuits. Investors such as hedge funds, sovereign wealth entities, and institutional investors now finance plaintiffs or law firms in exchange for a percentage of any settlement or judgment. This industry, estimated to be worth between $2.3 billion and $5 billion annually, enables funders to absorb litigation risk and select cases with high return potential. Critics argue that TPLF encourages frivolous or exaggerated claims by providing financial incentives to pursue suits based on profit rather than justice.
The Wall Street Journal reports that “nuclear verdicts,” defined as jury awards exceeding $10 million, have increased in recent years due to social inflation and emotionally charged litigation tactics. The frequency of these verdicts rose by 27% in 2023, affecting the insurance industry by causing premiums to rise, underwriting standards to tighten, and some coverage options to become scarce. Insurers warn that these extreme verdicts threaten market stability and affordability for both individuals and businesses.
Prominent “billboard attorneys,” known for their aggressive advertising strategies, are key figures in what critics call the Trial Lawyer Playbook. This includes TPLF as the “Finance Play” and marketing blitzes as the “Advertising Play.” These lawyers use litigation funding and mass recruitment tactics to increase case volumes, incentivize speculative filings, and encourage socially engineered claims often targeting businesses rather than addressing genuine grievances.
In Texas, the increase in nuclear verdicts has led to a legislative push for tort reform. Measures like HB 4806 and companion bills such as SB 30 aim to limit excessive jury awards, impose evidence restrictions, and reduce trial lawyer influence in order to stabilize the civil justice climate. Proponents believe these reforms will help control insurance costs and preserve the state’s business environment; however, critics caution they may undermine plaintiffs’ access to fair compensation.
Savage is an advice columnist known for his candid commentary on sexuality, politics, and social issues through his work with Index Newspapers.
