Houston Daily

Texans for Lawsuit Reform announced on X that trial lawyers are exploiting the system through phony suits and inflated claims, which they say are driving up insurance costs for Texas families. The group noted that although Texas reformed early, new lawsuit abuses continue to emerge.

According to Texans for Lawsuit Reform’s official blog post titled "The Tort Tax Lives On," the organization argues that lawsuit abuse continues to drive up costs for consumers, even after decades of tort reform. The group notes that inflated claims and "nuclear verdicts" by trial lawyers have placed new financial pressure on insurance markets, leading to higher premiums for Texas families and small businesses. Their statement emphasizes that although past reforms have made Texas a model for balanced courts, ongoing vigilance is needed to prevent the return of lawsuit excesses that could undermine economic stability.

According to the U.S. Chamber of Commerce’s Institute for Legal Reform (ILR), Texas tort costs reached approximately $38 billion in 2022, equating to about $4,594 per household—a sharp increase from prior years. The ILR report explains that these costs are passed directly to consumers through higher auto, home, and health insurance premiums as companies account for litigation expenses. The study concludes that excessive lawsuits and large damage awards create a "hidden tax" on Texas families, driving up household costs while benefiting only a small number of trial lawyers.

The Texas Public Policy Foundation’s analysis titled "The Economic Impact of Tort Reform in Texas" indicates that state reforms over the past two decades—such as limits on non-economic damages and stricter venue rules—have significantly lowered insurance premiums and boosted the state’s economic competitiveness. The foundation found that after key tort reform measures were enacted in 2003, medical malpractice insurance rates dropped by more than 60%, and the number of practicing physicians in Texas rose dramatically. The report concludes that maintaining and strengthening tort reform not only curbs lawsuit abuse but also contributes to lower consumer costs and greater marketplace stability.

Texans for Lawsuit Reform (TLR) is a nonpartisan, nonprofit advocacy organization based in Austin, Texas, dedicated to promoting fairness and efficiency within the state’s civil justice system. According to its official website, TLR’s mission is to combat lawsuit abuse, ensure courts remain accessible and balanced, and protect Texas consumers and businesses from excessive litigation costs. The organization continues to advocate for policies that sustain the state’s economic growth and prevent trial lawyers from manipulating the legal system at the expense of Texas families.