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 2008

Senior attorneys at America’s largest employers say state court liability systems have steadily improved over the last several years, but less than half of them rate the state courts as “excellent” or “pretty good.” These lawyers say Delaware still has the best legal climate in the country, and West Virginia remains the worst. Those are among the findings of Lawsuit Climate 2008: Ranking the States, an annual assessment of state liability systems conducted by the nonpartisan market research firm Harris Interactive, and released April 23, 2008 by ILR.

Lawsuit Climate 2008: Ranking the States

Lawsuit Climate Report (PDF)

Full Harris Survey (PDF)