The third edition of Tort Costs in America, composed by The Brattle Group and published by ILR, found that the costs and compensation paid into the U.S. tort system reached over $529 billion in 2022 – equating to 2.1 percent of U.S. GDP and over $4,200 per U.S. household. The study also found that tort costs continue to grow faster than inflation, at an average annual rate of 7.1 percent between 2016 and 2022. If tort cost growth continues at that pace, U.S. tort costs will near $1 trillion by 2030.
Tort Costs in America: An Empirical Analysis of Costs and Compensation of the U.S. Tort System also estimates every state’s per-household tort costs.
Some of the states with the highest per-household tort costs include:
- California ($5,429)
- Georgia ($5,050)
- Texas ($4,594)
- Illinois ($4,281)
While the study shows the challenges of rising tort costs, it also shows that meaningful reforms to improve state legal climates can reduce those costs. Lawmakers in West Virginia have successfully prioritized efforts to create and maintain a fair legal system. Since 2016, West Virginia’s tort costs have declined over 20 percent, and its per-household cost was the lowest in the country in 2022, at about $2,100.
To view an interactive map of tort costs per household on the U.S. Chamber website, click here.
