HELL’S ANGELS: Los Angeles Named Nation’s Worst Judicial Hellhole®, Verdicts Go Nuclear

Los Angeles’s out‑of‑control civil courts earned the No. 1 spot on this year’s Judicial Hellholes® list, driven by high-dollar “nuclear verdicts®” and fraud allegations. Los Angeles set itself apart from the rest of the state for the first time in more than 15 years for creating a culture of lawsuit abuse that negatively affects consumers, small businesses, and local jobs.

The new report released today by the American Tort Reform Foundation outlines several nuclear verdicts® awarded this year by Los Angeles courts, which are categorized as verdicts exceeding $10 million. Among them: $1 billion awarded in a talc case involving an 88-year-old plaintiff and a $50 million verdict in a Starbucks hot tea lawsuit, echoing the notorious McDonald’s hot coffee case 30 years ago. 

“Los Angeles didn’t land at the top of this list by accident — it earned that spot because its courts have become the go-to venue for outsized payouts and questionable tactics,” said Tiger Joyce, president of the American Tort Reform Association. “When you see a steady drumbeat of eight‑ and nine‑figure awards, you’re seeing a legal culture that rewards emotion over evidence. That same culture is forcing businesses to fight back with RICO complaints describing serious allegations of fraud, signaling a complete failure of the system.” 

Fraud Triggers RICO Filings

The report highlights fraud allegations that ATRF says prompted companies to sue for racketeering violations:

• In May 2025, Ford Motor Company filed a RICO suit saying the Knight Law Firm and others exploited California’s lemon law and falsified time sheets by recording more than 24 hours per day of billable time dozens of times. 
• In July 2025, Uber filed a RICO suit against lawyers who allegedly channeled clients to “pre-selected” medical providers to inflate injury claims and medical bills after minor crashes, taking advantage of California’s $1 million rideshare insurance minimum to maximize payouts. According to the complaint, in Los Angeles County, “approximately 45% of the fare of every Uber ride goes to mandated insurance costs, driving up prices for riders and pushing down earnings for drivers.” 

Tort Tax and Economic Harm

Recent data shows that Los Angeles families pay an annual “tort tax” of $3,658 per resident — nearly $15,000 yearly for a family of four. Excessive tort costs further contribute to an annual loss of 407,500 jobs in Los Angeles.

“If the state took meaningful steps to reduce lawsuit abuse, California’s economy could expand by nearly $96 billion — on par with the annual output of a major state economy. Yet cities such as Los Angeles continue to bear the cost of an outdated and overburdened legal system,” said Jaime Huff, President and CEO of the Civil Justice Association of California.

Rising Prop 65, ADA Lawsuits

Los Angeles is a hotspot for serial filings under the state’s Proposition 65 and the federal Americans with Disabilities Act. These filings skyrocketed in 2024 and preliminary data for 2025 show no sign of relief for the small businesses frequently targeted by these types of frivolous lawsuits.

• Prop-65 settlements hit more than $42 million this year as of November — up 60% from 2024 — with attorneys taking nearly 90% of payouts. 
• Total annual dollar amounts paid out by businesses hit with Prop-65 suits has increased more than 350% since 2020. 
• California courts accounted for nearly 37% of the nation’s federal ADA accessibility lawsuits last year, with filings increasing 36% over 2023. Mid-2025 data show demand remains high, with Los Angeles serving as a preferred venue.

“Los Angeles can’t afford to shrug this off as business as usual,” Joyce said. “When courts tolerate fraud and reward serial filers, they send a clear signal that litigation comes first and consumers, small businesses, and workers come last. State leaders need to decide whether they want Los Angeles to be known as a global center for innovation and jobs or as the nation’s premier destination for lawsuit abuse — because right now, the Judicial Hellhole® label is winning.”

The Judicial Hellholes® report identifies Los Angeles as the worst among eight jurisdictions where courts favor lawsuit abuse. The city ranks above other notorious venues, including New York City and Philadelphia. The full 2025-2026 report and rankings are available at JudicialHellholes.org.