Houston Daily

Sarah Sagredo-Hammond, President of Atlas Electrical, expressed concerns over fraudulent lawsuits targeting small, family-run businesses. She said that these lawsuits are "heartbreaking," and threaten the survival and legacy of such enterprises.

"When you run a small business, you put your heart into it, like our company, Atlas," said Sagredo-Hammond. "I run it because it comes from our family. I run it because it's my dad's legacy. I run it because we hire people from the community, and we support families. And to get sued for a fraudulent claim is heartbreaking. If it's a real harmed person, because of one of my human errors, then that's different. All you want to do is make it right. But when it's fraud, it's wrong. It makes you want to cry. It makes you want to close down."

The Lone Star Economic Alliance (LSEA), supported by Texans for Lawsuit Reform (TLR), commended the Texas House Judiciary & Civil Jurisprudence Committee for advancing Senate Bill 30. According to LSEA, this bill is a significant step toward restoring fairness and predictability in Texas's legal system. Senate Bill 30 aims to address a rise in abusive lawsuits that have increased costs for Texans and jeopardized business operations. The bill seeks to reduce pressure to settle baseless claims and improve transparency by exposing improper coordination between lawyers and medical providers. It also intends to provide juries with market-based evidence on the actual cost of medical services.

Sagredo-Hammond's March 28 statement | X.com

Protecting American Consumers Together (PACT) released a statement following public testimony on House Bill 4806 and Senate Bill 30, which aim to curb lawsuit abuse. The hearing highlighted widespread fraud within the state's legal system. Medical billing expert Dee Soule testified that injury victims are often drawn into a network where inflated bills and undisclosed relationships between attorneys and doctors manipulate the legal process. Soule described the current system as one that treats victims like ATMs. Other witnesses echoed her concerns, citing examples of routine medical procedures being excessively overbilled through coordinated referral schemes.

In 2024, Texas led the nation with 23 nuclear verdicts—jury awards exceeding $10 million—more than any other state, according to Marathon Strategies’ report "Corporate Verdicts Go Thermonuclear." These cases contributed to a national increase in such verdicts, which rose by 52% from the previous year, totaling $31.3 billion. Texas ranked third in total award sums with $3 billion in verdicts, following Nevada and California. This volume underscores Texas's growing exposure to high-stakes corporate litigation. In contrast, Florida saw a decline in rankings due to recent tort reform efforts.

A study from the U.S. Chamber Institute for Legal Reform revealed that Texas ranks among the top five states for nuclear verdicts, with 130 personal injury and wrongful death cases resulting in $16 billion in awards from 2013 to 2022. The study highlighted how "anchoring" tactics—where attorneys suggest arbitrary high-dollar damage amounts—played a major role in inflating jury awards. One example involved a $39 million verdict in an auto accident case after a plaintiff’s lawyer proposed a symbolic per-mile damage figure; the Texas Supreme Court later overturned it due to improper tactics. These excessive awards contribute to higher insurance premiums and consumer costs while undermining fairness in the legal system.

Sagredo-Hammond is not only at the helm of Atlas Electric and Air Conditioning but also holds degrees in finance and real estate from Texas A&M University along with certifications from Stanford University. She is an entrepreneur, real estate investor, and advocate for women business owners.