Illinois is one of the most expensive states in the country to defend a lawsuit.
WASHINGTON — As affordability remains top-of-mind for Americans across Illinois, the U.S. Chamber’s Institute for Legal Reform recently released a report outlining how Illinois’ litigation environment has become a nightmare for businesses and other civil defendants.
This unchecked legal environment has forced the state’s households to pay an estimated $4,281 annually due to costs created by the lawsuit system, costs that fraudulent lawsuits contribute to. Companies operating in Illinois face these mounting legal costs that are ultimately passed on to consumers.
“Illinois is stuck in a cycle of lawsuit abuse, and families are paying the price,” said Stephen Waguespack, President of the Institute for Legal Reform. “It isn’t a coincidence that the state has developed a reputation as a plaintiffs’ lawyer haven and hotspot for nuclear verdicts. Illinois’ legal policies have incentivized this culture for years, but now is the time for the state to completely break free from this cycle and enact sensible reforms to curb abusive practices. Standing still is simply not an option anymore.”
“Illinois’ legal environment has increasingly tilted toward excessive litigation and unpredictable liability. This report highlights why policymakers must take a serious look at reforms that restore fairness, improve transparency, and ensure our courts serve both plaintiffs and defendants responsibly,” said Katie Reilly, Executive Director at the Illinois Coalition for Legal Reform.
While other states have taken steps to restore fairness to their legal systems, progress in Illinois has been limited. The state’s current rules hinder business and encourage frivolous litigation, thanks to a trend of laws that tilt Illinois’ courts in favor of trial lawyers and disproportionate damages.
The report identifies several areas where greater transparency and accountability could help curb excessive costs and restore balance to Illinois’ civil justice system. One critical area for reform is third-party litigation funding (TPLF), a shadowy practice that exacerbates Illinois’ legal challenges and contributes to nuclear verdicts and outsized settlements.
There is an opportunity for meaningful change with Rep. Dan Ugaste’s TPLF bill. HB 5244 shines a light on this shadowy practice where outside entities bankroll lawsuits and frequently leave plaintiffs worse off. These funders often influence case outcomes, inflate settlements, and drag out litigation, all while walking away with a disproportionate share of the settlement. While HB 5244 alone won’t solve all of Illinois’ legal woes, it represents a meaningful step toward addressing one of the many practices driving up litigation costs and undermining fairness in Illinois’ legal system.
The report also highlights several other key concerns and multiple solutions such as:
- Illinois has seen no significant civil justice reforms in decades as other states have moved forward, leaving it with an unbalanced liability system, which has stifled job creation, deterred investment, and driven up costs for families.
- Illinois ranks among the top states for nuclear verdicts, meaning jury awards exceeding $10 million, which are most frequent in Cook County.
- Two Illinois counties host about half of the nation’s asbestos litigation.
- Plaintiffs’ attorneys frequently use manipulative tactics to push juries toward outsized pain and suffering awards, often with the tacit approval of the judiciary.
- Illinois should modernize its’ liability rules so damages align in proportion to fault.
- Evidentiary standards must be strengthened to ensure that courts rely only on testimony backed by sound science.
- By enacting meaningful constraints on excessive damages and the tactics used by plaintiffs’ attorneys to obtain such damages, the state’s courts will be less prone to outsize awards.
- Read and download the full report here.
About the U.S. Chamber of Commerce Institute for Legal Reform
The U.S. Chamber of Commerce Institute for Legal Reform (ILR) is the country’s most influential and successful advocate for civil justice reform, both in the U.S. and abroad.
About the Illinois Coalition for Legal Reform
The Illinois Coalition for Legal Reform is advancing reforms to reduce abusive litigation and excessive verdicts, helping foster a fair legal environment that supports jobs and economic growth in Illinois.
