New York Legislative HeatCheck — Inside the “Fraudemic” and Gov. Hochul’s Affordability Push 

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A complicated web of public and legal influence fueled by funding campaigns

New York is heating up — and it’s not just the weather. 

While families across the state are tightening their belts, a billion-dollar industry is working overtime in Albany to keep things exactly the way they are. In just three years, trial lawyers dumped $6.5 million into political campaigns according to a recent report from the Lawsuit Reform Alliance of New York. Their goal? Maintain the status quo that’s kept them in power in a state already branded both a “Judicial Hellhole®” and a “Lawsuit Inferno.” 

The result is a measurable barrier to affordability. Recent data shows New Yorkers pay the second-highest “tort tax” in the nation, at $2,684 per person annually due to excessive litigation — up 43% since 2022. Imagine writing a check for more than $2,600 every year and getting absolutely nothing in return — that’s the reality of the legal climate in the Empire State.  

The Cost of Lawsuit Abuse: By the Numbers 

Hard-working families foot the bill for a system in crisis: 

  • 2nd-Highest “Tort Tax” Per Person — $2,684/Year 
  • 60% Higher-Than-Average Car Insurance Premiums — $4,000/Year on Average 
  • 2nd-Highest Number of Staged Car Crashes in 2023 — 1,729 

Gov. Kathy Hochul recently called out these issues in a video highlighting the absurdity of New York’s auto insurance rates. But while the Governor offers commonsense solutions to crack down on fraud and make New York more affordable for everyone, trial lawyers and the state lawmakers whose campaigns they fund are blocking her success. 

A Web of Influence

Why is reform so difficult? Plaintiffs’ lawyers contributed nearly $6.5 million to lawmakers between 2022 and 2025, according to a recent report from the Lawsuit Reform Alliance of New York. The report found that contributions were concentrated heavily among leadership: 

  • Assembly Speaker Carl Heastie: A significant legislative roadblock to Hochul’s proposed reforms, the Speaker received $25,000 last year from the New York State Trial Lawyers Association to a PAC he owns. His former college roommate and communications consultant, Patrick Jenkins, made $528,000 last year lobbying for the interests of NYSTLA in Albany. 
  • Senate Majority Leader Andrea Stewart-Cousins: Her PAC received $25,000 from NYSTLA. Meanwhile, the New York State Democrats have received political consultancy from a lobbying firm founded by the son of one of her Senate colleagues. Evan Stavisky, whose mother is state Sen. Toby Ann Stavisky, pocketed nearly $140,000 last year from lobbying for trial lawyer advocacy groups. 

This complicated web of money and influence contributes to the dysfunction we’re seeing in New York now and offers insights into why some lawmakers like Majority Leader Stewart-Cousins and Speaker Heastie are so reluctant to fight back against the forces that fund.” 
– Lauren Sheets Jarrell, ATRA Vice President and Counsel for Civil Justice Policy 

“Fraudemic”

This complicated web of money contributes to the dysfunction playing out in Albany in what should be a straightforward discussion about commonsense reforms. Dubbed the “fraudemic,” a growing pattern of lawsuit abuse involving staged auto accidents and fraudulent claims has resulted in sky-high rates for auto insurance across New York. Several high-profile law firms funding these political campaigns — including Subin Associates, Gorayeb & Associates, Liakas Law, and William Schwitzer & Associates — were all hit with RICO lawsuits, as chronicled in the American Tort Reform Foundation’s 2025-2026 “Judicial Hellholes®” report. 

The problem hasn’t magically resolved, though. Just this month, FedEx filed a RICO lawsuit against the Ikhilov Law Group accursing the law firm “and its owner, attorney Zorik ‘Erik’ Ikhilov, of running a sophisticated ring also involving doctors and medical providers that aimed to bilk the delivery giant through bogus liability claims,” according to reporting from the New York Post.  

“RICO lawsuits shouldn’t be necessary to achieve accountability, but New York City’s courts are so entrenched in fraud and abuse that businesses are left with no other choice.” – ATRA President, Tiger Joyce 

Meanwhile, the trial lawyer “ad machine” is booming. Spending on legal ads surged to nearly $179 million last year — an 84% increase since 2023. A majority (78%) of the 1.2 million total local legal services ads in 2025 promoted personal injury attorneys, with nearly 300,000 ads specifically related to accident attorneys, including motor vehicle and construction worksite accidents. 

Andrew Finkelstein, current president of the New York State Trial Lawyers Association, is managing partner of several different law firms, including Finkelstein & Partners and Jacoby & Meyers. Combined, those two firms spent at least $3.7 million on more than 20,274 ads in 2025. 

Moving forward…. 

Beyond its longtime Judicial Hellhole® status, New York’s legislature additionally earned the title of “Lawsuit Inferno” in ATRA’s Legislative HeatCheck report two years running. Gov. Hochul has presented lawmakers with a unique opportunity to work together to address issues impacting affordability for all New Yorkers. Now it’s up to lawmakers to take back their state’s reputation, side with their constituents, and show that they’re willing to fight the “forces that fund.”  

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The American Tort Reform Association is the nation’s first organization dedicated exclusively to reforming the civil justice system through education and legislative enactment.

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