Get the Facts

Lawsuit abuse is having a devastating impact on our society.

Key Facts:

• 73% of voters say lawyers benefit the most from lawsuits; only 4% say victims do.
  Election night poll of 800 voters conducted on November 4, 2008 by Public Opinion Strategies
• 83% of voters say the number of frivolous lawsuits is a serious problem.
  Election night poll of 800 voters conducted on November 4, 2008 by Public Opinion Strategies
• Three-quarters of all small business owners in America are concerned they might be the target of a frivolous or unfair lawsuit. Of those who are most concerned, six in ten say the fear of lawsuits makes them feel more constrained in making business decisions generally, and 54 percent say lawsuits or the threat of lawsuits forced them to make decisions they otherwise would not have made.
  Small Businesses: How the Threat of Lawsuits Impacts Their Operations
• Small businesses paid $105.4 billion in tort liability costs in 2008.
  Tort Liability Costs for Small Business
• Small businesses are responsible for 64 percent of all new jobs created in the U.S economy (SBA Office of Advocacy Frequently Asked Questions). More jobs, higher wages, and better benefits could be provided if the average small business earning $1 million in revenue didn’t have to spend $20,000 each year on an out of control lawsuit system.
  Tort Liability Costs for Small Business
• The growth in U.S. tort costs are projected to increase by three percent in 2009.
  2009 Update on U.S. Tort Cost Trends
• America’s civil justice system is the world’s most expensive, with a direct cost in 2008 of $254.7 billion, or 1.79 percent of the U.S. GDP.
  2009 Update on U.S. Tort Cost Trends
• Tort costs were $838 per U.S. citizen in 2008, meaning a family of four paid a “litigation tax” of $3,352 for the U.S. civil justice system, a cost driven up due to increased costs from lawsuits and other liability expenses that force businesses to raise the price of products and services.
  2009 Update on U.S. Tort Cost Trends
• The cost of the U.S. tort liability system as a percentage of GDP is more than double the average cost of any other industrialized nation.
  Who Pays for Tort Liability Claims? An Economic Analysis of the U.S. Tort Liability System