Costs of Lawsuit Abuse

America's tort system costs $865 billion annually – this staggering number is 30 times the National Institutes for Health's budget to cure deadly diseases, 27 times federal spending on Homeland Security, and 13 times Department of Education funding. That is $9,827 per year for a family of four. (Pacific Research Institute, Jackpot Justice: The True Cost of America's Tort System, 2007)

The U.S. tort system cost $260 billion in 2004. This amount translates to nearly $900 for every man, woman and small child in the nation. (Towers Perrrin/Tillinghast, "U.S. Tort Costs: 2005 Update")

Lawsuits and liability insurance cost American businesses $128.8 billion each year. ( Washington Times , Lawsuits costly for U.S. small businesses, June 9, 2004)

An estimated 4.4 million U.S. small businesses pay more than half of those costs. Small businesses pay about $75.8 billion of the total bill, with larger corporations paying the other $53 billion. ( Washington Times , Lawsuits costly for U.S. small businesses, June 9, 2004)

Online trial lawyer ad spending rose more than fivefold to $8.7 million between January and November last year, compared with just $1.5 million a year earlier. ( Wall Street Journal , Lawyers Bid Up Value of Web-Search Ads, April 8, 2004)

Trial lawyers, taken as a whole, gross $40 billion per year in revenues. ( Trial Lawyers, Inc. , A Report on the Lawsuit Industry in America, 2003)

According to a recent study, business leaders believe that the Texas civil liability system is among the nation's worst. The survey ranks Texas' liability system 43 out of 50 in terms of how fair and reasonable the system is perceived to be by America's business leaders. (2006 State Liability Systems Ranking Study conducted for the U.S. Chamber Institute for Legal Reform)

The same survey showed that nearly 81 percent of the respondents indicate the litigation environment of a state could affect decisions such as where to locate or do business.

As many as 40 percent of all asbestos claims nationally have been filed in Texas in recentyears. (Texas Asbestos Consumers Coalition)