Missouri Gov. Mike Parson signed S.B. 591 to amend Missouri’s consumer protection act and the state’s punitive damages system.
Economic Impact Report Analyzes Excessive Tort Costs on State Economies
Oct. 15, 2018 (WASHINGTON) – Today, the American Tort Reform Association (ATRA) and Citizens Against Lawsuit Abuse (CALA) released six economic impact studies analyzing excessive tort costs in California, Florida, […]
Oct. 15, 2018 (WASHINGTON) – Today, the American Tort Reform Association (ATRA) and Citizens Against Lawsuit Abuse (CALA) released six economic impact studies analyzing excessive tort costs in California, Florida, Illinois, Louisiana, Missouri and West Virginia.
Each state’s study determines how excessive tort costs impact employment and job loss, gross product output and annual direct costs. The study uses Ohio, a state that historically is seen as having a balanced legal system, as a “control group” to contrast with each of the states.
“An out-of-balance civil justice system leads to job loss in every sector across the nation,” ATRA President Tiger Joyce said. “The costs associated with lawsuit abuse put American workers at a disadvantage, creating fewer employment options and rising prices. The reports demonstrate the need for states to addresses the imbalances in their legal systems as a way to strengthen their economies and provide better opportunities for their citizens.”
The study estimates nearly a half-million permanent jobs were lost due to excessive tort costs in the six states:
- California: Loss of 197,776 jobs and $11.8 billion in personal income
- Florida: Loss of 126,139 jobs and $7.5 billion in personal income
- Illinois: Loss of 81,685 jobs and $4.9 billion in personal income
- Louisiana: Loss of 15,556 jobs and $945 million in personal income
- Missouri: Loss of 26,548 jobs and $1.62 billion in personal income
- West Virginia: Loss of 3,843 jobs and $238 million in personal income
This report used an econometric model relating U.S. litigation costs, as reported over time, to other variables which are both highly correlated with the costs of U.S. litigation and are available at the national and state levels. This analysis was undertaken in order to estimate the anticipated economic benefit for each of the six states should they adopt the kinds of tort reforms Ohio has enacted.
CALA consists of more than 100,000 advocates nationwide who are committed to reforming our civil justice system in their home states and nationwide.
The American Tort Reform Association, based in Washington, D.C., is the only independent national organization dedicated exclusively to tort and liability reform through public education and the enactment of legislation. Its members include nonprofit organizations and small and large companies, as well as trade, business and professional associations from the state and national level.
Federal Judge William Shubb ruled that due to insufficient evidence, California cannot require glyphosate-based weedkiller Roundup to be labeled as “known to the state of California to cause cancer.”
ATRA thanks Gov. Kim Reynolds for signing and the Iowa legislature for passing S.F. 2338, providing COVID-19 liability protections and reforming phantom damages in Iowa.
ATRA urges the Pennsylvania legislature to enact liability protections for critical industries like healthcare providers, PPE manufacturers and small businesses.
ATRA encourages the Louisiana State Senate to pass and Gov. John Bel Edwards to sign H.B. 57 to help reduce auto insurance rates.
ATRA voices its support for H.R. 7059, the Coronavirus Provider Protection Act.
ATRA joined others in voicing objection to the EPA’s inclusion of certain experts in its evaluation of asbestos risk.
Judges across the country have now determined that climate lawsuits against oil and gas companies belong in state courts, writes Jennifer Hijazi of E&E News.
ATRA states its disappointment in the 9th Circuit Court of Appeals’ decision that certain public nuisance climate lawsuits can proceed in state court.
Business leaders and tort reform advocates have welcomed changes that will limit punitive damage awards in Missouri, John Lewis of the St. Louis Record writes.
The 9th Circuit Court of Appeals has an opportunity to redirect policy and push back on activist attorneys’ attempts to improperly expand public nuisance law. With Covid-19 public nuisance lawsuits coming, Tiger Joyce, president of the American Tort Reform Association, discusses the importance of the climate change lawsuit.