Frivolous litigation by partisan actors continues to grow in the U.S. legal system, creating an expensive drain on taxpayers and small businesses.
One study by the U.S. Chamber of Commerce Institute for Legal Reform (ILR) found that tort costs and compensation reached more than $529 billion in 2022, or $4,200 per household. The costs of litigation have grown rapidly in recent years. The ILR found that total tort costs have increased by an average of 7.1% per year between 2016 and 2022, far above the average rate of inflation.
This inflation in tort costs is unsustainable, especially when frivolous litigation targets America’s small businesses. Nearly half of small businesses are involved in litigation, while 75% of small business owners express concern that they could be targeted. A single lawsuit could be devastating for a small business, especially one already operating on small margins.
As frivolous lawsuits clog up the courts, Americans with legitimate cases are also hurt in the process. Resources are stretched thin, the cost to taxpayers increases, and the timeline for legitimate cases can be greatly extended.
Consumers also face higher prices on virtually every basic necessity as a result of lawsuit abuse. It’s quite simple: When billboard lawyers file frivolous lawsuits, businesses are forced to raise prices to deal with the increased liability brought on by these meritless lawsuits. A study released by Protecting American Consumers Together (PACT) and conducted by The Perryman Group earlier this year found that excessive litigation drives up consumer prices nationwide––by 9.02% for prescription medications, 4.56% for home insurance, 2.71% for health insurance, and 2.50% for auto insurance. Even household goods like soap and detergent end up costing more, according to the study.
While the average American can see and feel these harms, progress toward reforming the system to be more fair for litigants has stalled out as trial lawyers who seek to maintain the “wild west” of frivolous litigation continue to play partisan politics. Similarly to labor unions, which give nearly 90% of their campaign contributions to Democrats, trial lawyers gave more than 75% of their contributions to Democrats in the 2024 campaign cycle. Notable trial lawyers held million-dollar fundraisers for former President Biden and former Vice President Harris in their campaigns against President Trump, while they were also highly active in state judicial races in 2024.
It's not only campaign contributions: Trial lawyers have spent years targeting President Trump personally as well as his businesses. Trump businesses have faced thousands of cases brought against them, including nearly 700 personal injury lawsuits. There even exist law firms that openly advertise themselves as “Trump Golf Course Accident Attorneys” to make their target clear. Legislators can no longer allow partisan politics to hold the courts hostage and drain billions of dollars from the economy each year. The time for reform is now: States across the country and Congress must work to establish real deterrents to meritless litigation. The future of our economy, and the pocketbooks of consumers, depend on it.
Rowan Saydlowski is Federal Affairs Manager at Americans for Tax Reform.
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