Citizens Against Lawsuit Abuse (CALA) announced on X that a report by The Perryman Group found excessive lawsuits cost families and small businesses an average of $1,666 per person. This finding reinforces CALA’s call for stronger legal reforms to support businesses.
According to Citizens Against Lawsuit Abuse’s post, the organization highlighted findings from The Perryman Group’s report showing that excessive lawsuit abuse imposes broad economic costs on both families and small businesses. CALA emphasized that inflated legal costs—described as a “tort tax”—undermine entrepreneurship and job creation, as businesses must redirect funds from growth to litigation. The post reiterated CALA’s mission to promote reforms that make Florida’s legal environment fairer and more predictable, ensuring businesses can prosper without the threat of frivolous or profit-driven lawsuits.
The Perryman Group’s 2024 report, “The Impact of Tort Reform on Economic Performance,” estimates that the U.S. economy loses $429 billion annually due to excessive litigation, equal to $1,666 per person in hidden costs. The report explains these losses stem from diverted capital, reduced productivity, and inflated legal expenses that flow through to consumers. Researchers project that strengthening tort reform measures could generate $200 billion in annual economic output and create 2.3 million permanent jobs.
The study further indicates that lawsuit abuse affects nearly every industry sector, increasing operational costs and driving up prices for goods and services nationwide. It finds the “tort tax” disproportionately impacts lower- and middle-income families, who pay higher premiums and everyday costs resulting from excessive litigation. CALA’s statement aligns with the report’s conclusion that further tort reform is necessary to maintain a competitive economy and safeguard household budgets from legal system inefficiencies.
According to the official website of Citizens Against Lawsuit Abuse, CALA is a nonpartisan grassroots organization dedicated to promoting fairness, accountability, and transparency within the civil justice system. The group educates the public about how lawsuit abuse increases consumer costs, limits business growth, and reduces economic opportunity. Its mission is to advocate for legal reforms balancing access to justice with protection against exploitative or frivolous litigation practices harming small businesses and working families.
