Texans for Lawsuit Reform (TLR) announced that nuclear verdicts over $10 million contribute to higher insurance premiums and prices for families, with every $1 million in lawsuit costs linked to a $2 million reduction in U.S. GDP.
According to TLR, trial lawyers benefit financially while consumers bear the cost. The group emphasized that these large verdicts lead to higher expenses for families, affecting everything from insurance premiums to daily living costs. TLR also said that addressing lawsuit abuse is crucial for protecting Texas consumers.
The U.S. Chamber of Commerce has reported that tort lawsuits imposed a $38 billion financial burden on Texas households in 2022, equating to an additional $4,594 per household annually due to excessive litigation. These costs result in higher prices for goods and services and reduced economic opportunities across the state.
The U.S. Chamber Institute for Legal Reform highlighted that the U.S. tort system incurred costs and compensation exceeding $529 billion in 2022, which amounts to over $4,200 per household and represents 2.1 percent of the nation’s GDP. Commercial tort liability accounts for 57 percent of these total costs.
Founded in 1994, Texans for Lawsuit Reform is a non-partisan organization with over 16,800 supporters from 900 Texas towns and cities representing 1,255 trades and professions. The group aims to establish a fair, efficient, and predictable civil justice system by discouraging non-meritorious lawsuits and excessive damage claims. TLR’s advocacy efforts have resulted in comprehensive tort reforms, contributing to Texas being ranked as the best state for business for 19 consecutive years.
