Dave Embertson, president of Erling, said that lawsuit abuse is increasing insurance premiums and threatening small businesses across Texas. This assertion was made in a blog post on April 8.
“The real victim in all of this is you,” said Embertson. “We don’t want to reduce staff or raise prices, but we might have no other choice. We’ll all keep paying the price.”
According to the Texas Alliance for Lawsuit Reform (TALA), Texans incur an annual “lawsuit tax” of $1,725, which is higher than the national average. This is attributed to the widespread costs of litigation and substantial court awards, including 207 nuclear verdicts totaling over $45 billion between 2009 and 2023. These significant verdicts have led to $33.6 billion in direct yearly costs, the loss of over 450,000 jobs, and rising prices on everyday goods and services. In response, the Texas Legislature is considering Senate Bill 30 to address inflated medical billing, increase transparency, and curb abusive lawsuits while preserving access to the courts for legitimate claims.
As of 2022, Texas households face an average annual burden of $4,594 due to tort-related expenses. These encompass litigation costs, claimant compensation, and administrative fees. The financial strain amounts to nearly $38 billion statewide and is intensified by the prevalence of “nuclear verdicts,” jury awards exceeding $10 million. Such verdicts elevate insurance premiums and legal fees, thereby increasing the overall cost of living for residents. The Institute for Legal Reform found that Texas is among the states with the highest year-over-year growth in tort costs. This underscores the urgent need for legal reforms to mitigate these escalating expenses and promote a more sustainable economic environment for its citizens.
Embertson leads Erling, a company providing equipment installation and repair services for vehicle fueling systems primarily serving convenience stores across Texas. He graduated from Michigan State University in 1978 and has over two decades of leadership experience at Erling.
