ATRA Hails West Virginia as 'Tort Reform Trailblazer' After Passing Key Legal Reforms

ATRA Hails West Virginia as ‘Tort Reform Trailblazer’ After Passing Key Legal Reforms

Commercial Trucking, Litigation Funding Reforms Hailed as ‘Pivotal Progress’

Today, the American Tort Reform Association recognized West Virginia as a “Tort Reform Trailblazer” in its new Legislative HeatCheck report, applauding the state for enacting two crucial pieces of litigation reform this year.

“West Virginia vaulted to the forefront of states reining in lawsuit abuse and restoring balance to their civil justice systems, after years of being dubbed a ‘Judicial Hellhole®,’” Tiger Joyce, ATRA president said. “The Mountain State’s recent legal reforms on commercial trucking litigation and third-party litigation financing represent pivotal progress.”

Senate Bill 583, sponsored by Republican Sen. Mike Stuart, helps level the playing field in commercial vehicle lawsuits and protects small businesses in the trucking industry by limiting noneconomic damages to $5 million, with reasonable exceptions. This measured reform, signed in March by Republican Gov. Jim Justice, will rein in personal injury lawyers pursuing “jackpot justice” and nuclear verdicts.

“For too long, West Virginia’s ‘Judicial Hellhole®’ reputation was fueled by excessive and unpredictable damages in commercial auto cases,” Joyce said. “SB 583 brings common sense to this litigation which is both unfair and an excessive burden on an industry that is vital to the economy

West Virginia also took decisive action to increase transparency around third-party litigation financing through Senate Bill 850. The new law extends disclosure requirements and prohibitions on improper funder conduct like referring plaintiffs to specific attorneys.

“Third-party litigation funding is a shadowy industry that often distorts the justice system by incentivizing plaintiffs to reject reasonable settlements in pursuit of a bigger payout,” Joyce said. “Unchecked litigation funding from foreign entities could erode our judicial system’s fairness, but SB 850 addresses these concerns by requiring disclosure of any foreign financing behind lawsuits.”

Excessive tort costs still impose a $662 “tort tax” on every West Virginia resident annually while sapping 10,737 jobs from the state’s economy.

“ATRA commends West Virginia for taking these important first steps, but we’ll keep working closely with leaders in Charleston to build upon this momentum and fully rehabilitate the state’s legal climate,” Joyce said.

ATRA’s Legislative HeatCheck report evaluates a select group of states’ progress — or lack thereof — in enacting meaningful tort reform measures during their most recent legislative sessions.

West Virginia’s legislature was named a “Tort Reform Trailblazer” alongside state lawmakers in Alabama and Indiana. The full Legislative HeatCheck report is available at heatcheck.atra.org.