Michigan’s Legal Climate Kills 97,000 Jobs Annually, New Report Reveals

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$1,046/Person ‘Tort Tax’ — Court Expands Liability, Michiganders Pay

The Michigan Supreme Court was named one of the worst “Judicial Hellholes®,” in the country today, ranked No. 8 in the American Tort Reform Foundation’s annual report. 

ATRF highlights several key findings in the report, with issues this year including:

  • Mixed Signals on Junk Science Evidence: While the Court strengthened expert evidence standards this year, it also issued a ruling that could undermine those efforts by allowing expert testimony that lacks scientific backing.
  • Expanded Liability: The Court effectively created a new category of premises liability this year when it ruled to allow condo owners to sue their own associations for injuries on common property, which could increase both court filings and insurance premiums. It further expanded workplace liability this year when it created new avenues for employment lawsuits that bypass existing procedures under workplace safety laws.
  • Judicial Activism: Michigan’s Supreme Court also overrode legislative amendments and invalidated the legislature’s constitutional authority to amend adopted ballot initiatives this year. 
  • Limits on Certain Damages In Jeopardy: One law that helps keep medical liability costs reasonable in Michigan could be in jeopardy. Michigan law currently limits noneconomic damages to $1 million in medical liability cases involving permanent, severe injuries. The Michigan Supreme Court is expected to determine whether the state’s limit on such damages is constitutional after the limit was challenged in a medical liability case this year, Beaubien v. Trivedi. 

“The Michigan Supreme Court expanded liability at nearly every opportunity this year,” Tiger Joyce, American Tort Reform Association president said. “While on one hand, the Court strengthened expert evidence standards, its actions otherwise will potentially open the floodgates to unreliable expert testimony and create legal uncertainty for employers in the state.” 

Every Michigander pays a $1,046 annual “tort tax” due to excessive litigation, while more than 97,000 jobs are lost each year – a 16% increase from the previous year.

“The Michigan Supreme Court’s liability-expanding decisions aren’t just abstract legal concepts that only affect lawyers debating in courtrooms — they have real-world consequences for the state’s economy and its residents,” Joyce said. 

Further compounding concerns, Michigan’s legislature was placed on ATRA’s “Heat Watch” list in its inaugural “Legislative HeatCheck” report this year. Several problematic bills still are pending in the statehouse. ATRA says lawmakers’ persistent attempts to expand liability signal a dangerous shift toward a lawsuit-friendly climate in the state. 

“If lawmakers enacted specific reforms targeting lawsuit abuse, Michigan could increase its gross product by $10.5 billion,” Joyce said. “It’s time for state leaders to stop doing the bidding of the trial bar and recognize that neverending and excessive litigation won’t bring about real change.” 
The full Judicial Hellholes report and 2024-2025 rankings are available at JudicialHellholes.org.

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