"Such is the case with another TPLF bill, Litigation Transparency Act, sponsored by California Republican Rep. Darrell Issa. Ensuring this bill is ready for passage would underscore Congress’s commitment to addressing the issue."
"Over the last five years, inflation has crushed American families. Despite great progress over the past year thanks to President Donald Trump, many household budgets are still stretched too thin. To make things even worse, the American economy is losing hundreds of billions each year due to out-of-control tort litigation. To address America’s affordability crisis, legislators, regulators, and courts can and must curb the expansion of costly, profit-driven lawsuits.
"For years, the U.S. Chamber of Commerce Institute for Legal Reform has been sounding the alarm on the costs of such lawsuits. The total cost of the abuse amounted to $529 billion in 2022, equal to about 2% of America’s entire economic output. For businesses, tort costs are increasing by an average of 8.7% a year.
"These litigation-related costs currently equate to $4,207 per American family each year, with households in some states paying far more. Californians are hit with an annual “tort tax” of $5,429 and New Yorkers face a tort burden of more than $7,000 each year. This increasingly high economic cost can be seen in rising prices, fewer jobs, and lost innovation and product choices.
"Out-of-control tort litigation makes American businesses less competitive, decreases worker productivity, and discourages companies from investing in their operations – instead having to hold money back for the potential of a rent-seeking lawsuit.
"However, some states are demonstrating that it’s possible to greatly reduce excessive tort costs. West Virginia legislators passed reforms that introduced more transparency in predatory third-party litigation financing (TPLF). The measure also addressed the consequences of misleading legal advertising. These and other reforms resulted in a 20% reduction in West Virginia tort costs from 2016 to 2022, giving the state the lowest per-household cost in the nation – at about half the national average." . . .
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