AUSTIN, TEXAS–The following statement on “The Litigation Lobby: Civil Justice Reform and the Future of the Texas-Florida Economic Advantage,” a policy paper from the Texas Conservative Coalition Research Institute and the James Madison Institute, should be attributed to Robert Wood, spokesman for Texans Against Lawsuit Abuse:
“Texas’s track record in advancing common-sense reform of its civil justice system is strong, as the new report from the Texas Conservative Coalition Research Institute and the James Madison Institute reaffirms, but they are right to signal threats to that progress here in Texas. To maintain our status as part of the economic ‘Boom Belt,’ Texas must stay on offense and defend against well-funded efforts to roll-back reform.
“Increasing levels of trial-lawyer political spending, upticks in new civil causes of action, the growth of contingency-fee outside counsels, uncontained nuclear verdicts®, and largely unregulated third-party litigation financing are all threatening to negatively impact Texas’s progress in civil justice reform and in turn driving increased costs for businesses and consumers.”
Wood pointed to a recent CALA economic impact study that shows Texans pay an average of $1,943 more for consumer goods and services every year because of excessive litigation, a nearly 13% increase from just one year ago. The annual average lawsuit tax nationally is $1,771 per person, placing Texas higher than the national average and meaning consumers are paying more for everyday expenses from groceries to insurance.
Additionally Texas recently made the American Tort Reform Foundation’s 2025-2026 Judicial Hellholes® Watch List, pointing to the need to redouble our efforts to address loopholes and flaws in our civil justice system.
Wood noted that Texas is also home to more nuclear verdicts – court awards that top $10 million – than any other state in the country.
The TCCRI / JMI report echoes many of the reforms that TALA has long advocated, including:
- Revive damage-award limits (similar to Senate Bill 30, 89R)
- Enact third-party litigation financing disclosure and regulation
- Rein in nuclear verdicts®
“Our courts should always be used for justice, not greed. The Texas Legislature can and should make the 2027 Legislative Session a pro-business, pro-civil justice reform session. Now is the time to defend and advance common-sense reform, not roll back progress.” Wood added.
