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Tort Lawsuit Costs Are Rising For Households in Illinois: Causes and Solutions

In Illinois, the financial burden of tort costs on households is becoming increasingly significant. These costs influence everything from insurance premiums to the overall cost of living, making it…

In Illinois, the financial burden of tort costs on households is becoming increasingly significant. These costs influence everything from insurance premiums to the overall cost of living, making it essential to understand their impact on Illinois households.

Illinois’ Tort Lawsuit Costs Per Household Reaches $4,281

According to ILR’s research, Tort Costs in America: An Empirical Analysis of Costs and Compensation of the U.S. Tort System – Third Edition, Illinois’ tort lawsuit costs reached over $21 billion in 2022, accounting for 2.07% of the state’s GDP. This translates to an average of $4,281 per household, a substantial financial burden that affects the disposable income and financial stability of families across the state. The high tort lawsuit costs in Illinois can be attributed to several factors shaping the state’s legal environment.

The Rising Cost of Lawsuits on Households in Illinois: Causes and Solutions

One reason for the high tort lawsuit costs in Illinois is the prevalence of nuclear verdicts, or jury awards exceeding $10 million. Nuclear verdicts in Illinois are especially driven by medical liability, which accounted for four out of 10 nuclear verdicts in the state between 2013 and 2022. These large awards not only increase the cost of individual cases but also contribute to higher insurance premiums and legal fees, which are ultimately passed on to consumers and businesses.

ILR has been actively involved in researching and advocating for legal reforms to address these issues. Our recent report provides a comprehensive analysis of the costs associated with the tort system across different states, including Illinois. The report highlights the need for continued legal reforms to manage and potentially reduce these costs.

Bottom Line

While tort lawsuit costs are an inherent part of the legal system, their impact on Illinois households is increasingly burdensome. By implementing targeted reforms and promoting a more efficient legal process, Illinois can work towards reducing these costs and ensuring a fairer, more sustainable legal environment for its residents.

To view an interactive map of tort costs per household on the U.S. Chamber website, click here.

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