Texans for Lawsuit Reform announced that lawsuit abuse is harming Texas’ economy and called for continued efforts to strengthen tort reforms.
For three decades, Texas has been a focal point in national debates over tort reform. According to pro-reform advocates, excessive and abusive litigation undermines growth, jobs, and household purchasing power. Groups like Texans for Lawsuit Reform and the U.S. Chamber of Commerce’s Institute for Legal Reform emphasize that rising “nuclear verdicts,” expansion of commercial vehicle lawsuits, and growth in third-party litigation funding contribute to higher insurance premiums and operating costs. These costs are ultimately passed on to consumers as more expensive goods and services, reinforcing the idea that litigation is not just a courtroom issue but a broader economic concern for families and employers across the state.
Recent estimates cited by Texans for Lawsuit Reform, drawing on U.S. Chamber Institute for Legal Reform research, indicate that Texas tort costs reached nearly $38 billion in 2022, an average burden of about $4,594 per household, up from roughly $3,904 in 2020. Pro-reform analysts describe this as a “tort tax” or “lawsuit tax,” noting that national tort costs are estimated at about $4,207 per household and that overall tort costs have grown around 7.1 percent annually in recent years—outpacing both inflation and GDP growth. From this perspective, unchecked litigation is framed as a significant component of the cost of living in Texas, particularly affecting working families and small businesses sensitive to rising insurance and operating expenses.
At the national level, research for the U.S. Chamber of Commerce’s Institute for Legal Reform estimates that the U.S. tort system generated about $443 billion in costs and compensation in 2020, equal to roughly 2.1 percent of GDP and around $3,621 per household. Pro-reform commentators argue that when tort costs grow faster than the broader economy—ILR reports average annual tort cost growth above 7 percent in recent years—those dollars represent resources diverted from investment, hiring, and wage growth. In this framing, rising litigation costs can function as an implicit tax on economic activity, contributing to higher prices for consumers while also pressuring employers’ insurance, legal, and compliance budgets—a concern frequently cited by right-of-center business coalitions.
Texans for Lawsuit Reform is a Houston-based advocacy group formed in 1994 to promote changes to the Texas civil justice system. Public filings describe its role as educating lawmakers and the public about litigation while lobbying on civil justice issues. The group says its mission is to “foster freedom, innovation and job creation” by championing a fair legal system led by judges who apply the law as written. Through its affiliates including TLRPAC (Texans for Lawsuit Reform Political Action Committee) and the Texans for Lawsuit Reform Foundation, it has become a leading voice in Texas backing rule-of-law candidates favored by many Republican- and business-aligned constituencies.