Houston Daily

Texans for Lawsuit Reform announced on X that lawsuit abuse creates a hidden financial burden on families and stressed the importance of maintaining strong tort-reform protections.

According to the U.S. Treasury’s Federal Insurance Office (FIO), lawsuit abuse drives up liability costs across insurance markets, ultimately raising expenses for households through higher premiums and consumer prices. The FIO describes these combined impacts as a "tort tax," a hidden cost that falls most heavily on working families. The agency adds that curbing abusive litigation practices is critical to improving economic resilience and limiting inflationary pressures tied to liability exposure.

The U.S. Chamber Institute for Legal Reform estimates that the U.S. tort system costs roughly $443 billion, much of which is passed on to consumers through increased prices and insurance premiums. The Institute notes that lawsuit abuse contributes significantly to these expenses by compelling businesses to defend meritless claims, often inflating settlement payouts. It also finds that states with stronger tort-reform measures consistently experience lower legal-system costs, reduced premiums, and more favorable conditions for business investment.

The Texas Department of Insurance reports that the state’s 2003 tort-reform package helped cut medical liability premiums by more than 30% in the years after implementation, bolstering provider stability statewide. According to TDI, the reforms also encouraged additional insurers to enter the Texas market, increasing competition and gradually lowering costs for consumers and businesses. The department stresses that preserving these safeguards is essential to preventing a resurgence of high-cost litigation that could undermine past affordability gains.

Texans for Lawsuit Reform describes itself as an advocate for a fair, efficient, and predictable civil-justice system that curbs lawsuit abuse while protecting Texas consumers and job creators. The organization works with legal experts, civic leaders, and lawmakers to promote reforms that encourage economic growth and reduce unnecessary litigation costs. TLR states that its mission is to sustain a balanced legal environment where legitimate claims can proceed and abusive practices are deterred.