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 address the imbalances in their legal systems as a way to strengthen their economies and provide better opportunities for their citizens.”
The study estimates that nearly half a million permanent jobs were lost due to excessive tort costs in the six states:
This report used an econometric model relating U.S. litigation costs, as reported over time, to other variables that 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.
