About Lawsuit Abuse Impact

America's runaway legal system imposes burdensome costs on workers, consumers, small businesses, and healthcare. The cost of America's lawsuit-happy culture totals $261 billion a year, or $880 per person, according to seminal research by Tillinghast-Towers Perrin (2006). According to a 2007 study commissioned by the Institute for Legal Reform, small businesses alone pay $98 billion a year to cover the cost of America's tort system -- money that could be used to hire additional workers, expand productivity, and improve employee benefits.

Lawsuit abuse also has a damaging impact on healthcare. In some areas of the country, medical liability lawsuits have driven malpractice insurance rates through the roof, driving doctors from their practices and closing trauma centers and emergency rooms across the country. The American Medical Association reports that there are now 17 states in a full-blown medical liability crisis.

Lawsuit Climate 2010

ILR released its survey ranking the states with the best and worst legal climates in the country on March 22, 2010. According to the survey, the states with the worst legal climates are California (46th), Alabama (47th), Mississippi (48th), Louisiana (49th), and West Virginia (50th). The states with the best legal climates are Delaware (1st), North Dakota (2nd), Nebraska (3rd), Indiana (4th), and Iowa (5th).

Lawsuit Climate 2010: Ranking the States

Lawsuit Climate Report (PDF)

Full Harris Survey (PDF)