Faced with the federal government’s inability to address the economic impact of out-of-control product liability judgments, a growing number of states are taking steps to overhaul their civil justice systems to curb excessive lawsuits, stabilize insurance costs, and create a more predictable legal climate for employers and consumers alike.
The push comes amid mounting evidence that litigation imposes significant financial burdens on the U.S. economy. Supporters of reform say state-level efforts are helping create fairer, more efficient legal systems that benefit both businesses and consumers. Critics counter that reforms must be designed to ensure people can still seek justice when harmed.
The American Tort Reform Association estimates unnecessary lawsuits cost Americans $367.8 billion annually, a figure often described as a hidden “tort tax.” Research cited by legal reform advocates suggests that the average American pays about $1,666 per year in litigation costs, or more than $6,600 annually for a family of four. The Insurance Information Institute estimates that motor vehicle tort cases alone generated $42.8 billion in excessive litigation costs nationwide between 2014 and 2023.
Business groups and policymakers argue that unbridled litigation forces companies to divert resources from investment, wages and innovation to legal defense and insurance premiums. The result, they contend, is less economic growth.
Despite these concerns, federal tort reform efforts have been limited. Washington’s failure to implement widespread change is due, in no small measure, to the outsized influence of the trial lawyers’ lobby on Capitol Hill. The Constitution’s delegation of civil liability matters to the states also complicates the process, as do the public’s mixed feelings about lawsuits — people think there are too many lawsuits, but they don’t want their right to sue curtailed.
In the absence of significant federal reforms, states have emerged as the primary battleground for changes to civil liability laws. Over the past several years, legislatures in Georgia, Oklahoma, Alaska, Florida and Utah have enacted or pushed for reforms to limit liability awards.
Georgia took a significant step in 2025 when Gov. Brian Kemp (R) signed a bill that revised aspects of the state’s civil liability system, including clarifying damage standards and modifying procedural rules governing lawsuits. The reforms followed high-profile product liability litigation in Georgia, including a $2.1 billion jury verdict against Bayer to a plaintiff who developed cancer after using the weed killer Roundup.
State officials said the reforms will ensure fairness while reducing incentives for excessive or speculative claims. Proponents also argued the measures would help stabilize insurance markets and create a more favorable climate for job creation and business growth.
“These are not anti-lawyer or pro-insurance bills; these are pro-Georgia bills,” said Georgia Lt. Governor Burt Jones. “These bills ensure that we put Georgia families and consumers first by tackling the hidden costs we have all been paying thanks to Georgia’s current tort laws. [The reforms] strike a balance by stabilizing insurance costs for businesses and consumers, while increasing transparency and fairness for all Georgia citizens.”
In May 2025, Oklahoma Gov. Kevin Stitt (R) signed legislation aimed at limiting certain types of lawsuit awards and restricting “forum shopping,” in which plaintiffs file cases in jurisdictions perceived as more favorable to their complaint. Supporters say the changes will encourage business investment by reducing uncertainty in Oklahoma’s civil litigation process.
Florida has also enacted sweeping reforms. In 2023, Gov. Ron DeSantis (R) signed legislation that made significant changes to civil litigation rules, including modifications affecting attorney fees and negligence standards. Several subsequent efforts to undo those reforms have failed.
The Florida experience illustrates both the growing momentum behind tort reform and the ongoing debate surrounding it. While supporters argue that reforms reduce costs and increase fairness, opponents worry the measures could restrict protections for injured individuals.
“The word ‘reform’ is a complete misnomer,” says Joanne Doroshow, Executive Director of the Center for Justice and Democracy, a non-profit advocacy group that seeks to protect consumers’ rights in the court system.
“These laws take away people’s rights to access the courts and be properly compensated, and they undermine the constitutional right to a jury trial… Most tort restrictions are passed at the state level because liability laws are primarily state laws, and because it is easier for corporate lobbyists to grease state lawmakers with lobbying and campaign money.”
Not all states are in reform mode. California, New York, South Carolina and Louisiana are among the states cited in recent legal reform reports as retaining less restrictive liability systems. California has the highest “tort tax” in the country, averaging more than $2,400 per resident annually, which critics say contributes to significant economic losses and reduced job growth.
As a result of the states’ differing approaches, businesses operate under a growing patchwork of civil justice systems across the country. But that may change. Rising litigation costs and increased economic competition among states may prompt lawmakers in more states to explore changes to civil liability laws.
It’s an effort supported by the U.S. Chamber of Commerce.
“What started as just a few states recognizing this nightmare has become a nationwide movement,” said Stephen Waguespack, president of the US Chamber of Commerce Institute for Legal Reform.
“Lawmakers and engaged citizens have realized just how much trial attorneys are driving up the cost of everything. Momentum is building, and we have more reforms on the horizon. At the U.S. Chamber of Commerce, we’re working alongside state and federal policymakers to stop these frivolous lawsuits and ultimately lower costs.”
Randall Bloomquist, the head of Bloomquist Media, has been a journalist, PR guy, business owner and parent. He wrote this for Insidesources.com.
Reprinted with permission from DC Journal by Randall Bloomquist.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
Juries of outrageous settlements are too stupid to realize it raises the cost of living to ALL OF US, THEMSELVES INCLUDED.
Loser pays all costs. That is a reasonable beginning.
This suing companies over the smallest slight, perceived by a victim and then go shopping where the best tort laws are to get the most money has to stop. Many countries in Europe have no tort laws. Not even in the health industry. The democrats govern through the courts because they have messed up the justice system so badly. With bribed da’s and bought judges. The law is not being used any longer. The democrats tell the judges how to rule. And the judges go home with a bag full of money. Law and order has left this country. And we have crooked lawyers, crooked judges and crooked politicians who are fostering this climate. By supporting the judges and DA’s thereby supporting defunding the police and eliminating Department of Homeland Security and ICE. They want lawlessness by letting criminals out of jail, bringing them here from all
over the world and protecting them from deportation and killing ICE agents. But these pathetic citizens who feel slighted by the least infraction they should keep on suing businesses so they are going out of business. They don’t care that all these lawsuits hurts the economy. The logic of these people is not to be understood. Like the one man who said about Khamenie after he was killed how he felt about that. I don’t know he said I never met the man. What kind of logic is that. I never met Hitler either but having gone through 5 years of war I can tell you that man was evil. After 40 years of the evil Khamenie spread over the Middke East this man couldn’t decide if this man was evil or not. And we have so many of these people they never look any further than their nose is long. The same with these people suing companies. In the end they and everybody else pays for whatever judgement they received. Prices always go up as soon as a company loses a big lawsuit. Prices would come down if this suing would become illegal. On many products and insurance premiums would drop dramatically as well. Think people, reform of tort laws have to be done in every state especially the blue states.
Of course the Sharks want to block all Tort reform. Because frivolous law suits make them rich. “Have you been injured”?
Loser pays will shut all this crap down
The Brit system has a loser paying all the court costs, including legal fees for both sides. It keeps down the stupid stuff. Easy fix.
Find me a Michigander who has been in an accident… that was NOT THEIR FAULT… and was happy with his/her compensation, and I’ll show you a person who should move to the Peoples Republic of California.
Lawyer’s are not the only ones ripping off the American tax payers, the Big Health Organization are just as bad if not worse, I don’t see anyone really getting into their actions and costs.
The size of many settlements boggles the mind. Rather than to leave the amounts to juries we need guidelines with limits. They must still serve as deterrent to corporations that factor in claims if the profits are potentially higher.
We need tort reforms primarily because of the way we pay lawyers filing lawsuits, namely percentage-of-recovery fees ( generally paying 30 to 40% of the recovery). About 12 countries pay lawyers this way. Most of the world ( 150 plus countries) prohibits this method, because they conclude this method is ethically problematic. Switch to hourly compensation and watch the dramatic drop in the number of lawsuits filed annually. Real disputes enter the system and frivolous ones don’t.
I agree that there needs to be a better way than outrageous lawsuits, however (I hate that word) insurance companies most of the time do not leave people any alternative. If the insurance companies would pay reasonable payouts for damages and injuries, I feel the lawsuits would go down. Until the insurance industry is held accountable, I’m afraid the lawsuits will go on. I know families that are still fighting over damages from Hurricane Ian September 27,2022, that’s 3 & 1/2 years and no payments. The court system in the only hope they have and the insurance companies are doing everything they can to NOT pay for any damages.
We are at a time in history where everything is out of whack. The court system is being misused, our society is losing its way morally and too focused on money and power at any cost
Dangerous or faulty products, ignorant people getting hurt, corrupt judges and lawyers…on an on an on it goes.
I’m shocked. Why not allow consumers to sue these corporations at the expense of the corporation for matters such as Glyphosphate that is poisoning the population, wildlife and environment? What are these governmental agencies doing besides collecting bribes from lobbyists to pass legislation allowing glphosphate to be found in our bones and breasymilk?
These government agencies need to be dissolved like the rest of the inept government agencies that barely and rarely show up to work and fall asleep during congressional hearings. Now, what they are REALLY DOING is insulating the corporations against responsibility by passing legislation because they’ve received more payoffs.
These damned lawyers that advertise everywhere to promote their ridiculous lawsuits and the OUTRAGEOUS fees they charge. It’s disgraceful..