State Director of NFIB Nevada: ‘Frivolous lawsuits are one of the quickest ways to shudder a small business’

Tray Abney, State Director of the National Federation of Independent Business (NFIB), expressed concerns regarding costly legislation similar to those enacted in California. "Frivolous lawsuits are one of the quickest ways to shudder a small business," Abney said in a post on January 30.

"Private Right of Action” In combing through legislative bills, NFIB Nevada trains in antennae on those four words in particular," said Abney, Nevada State Director. "California provides a cautionary tale of what can happen when it passed a Private Attorneys General Act (PAGA) 21 years ago as an attempt to speed up the process employees could get their complaints against employers heard and adjudicated quickly. It instead turned into a cash cow for lawyers that left little for the workers. Nevada should not have to go through the same experience. Frivolous lawsuits are one of the quickest ways to shudder a small business that can't afford to lawyer-up and fight them."

The 2025 Nevada legislative session has commenced, and according to NFIB, there is apprehension about proposals that could elevate business costs and increase lawsuits against small businesses. The organization warned that facilitating lawsuits against employers mainly benefits trial attorneys while imposing significant financial burdens on business owners, with legal expenses averaging $75,000 per lawsuit. Highlighting California's situation, where excessive litigation has increased costs and created a challenging business environment, NFIB urged Nevada to avoid a similar trajectory that could threaten the stability of small businesses in the state.

The American Tort Reform Association (ATRA) released two reports on March 1, 2024, emphasizing the substantial influence of trial lawyers in Nevada through political donations and advertising. According to ATRA President Tiger Joyce, these reports reveal that top plaintiffs' firms are investing heavily to shape public opinion and legal outcomes, aiming to influence political decisions and increase litigation. Joyce said the findings raise concerns about the growing power of the legal industry in shaping policy and court rulings.

Nevadans for Fair Recovery indicated in a fact sheet on its website that Nevada is experiencing an affordability crisis exacerbated by lawsuit abuse. The group estimates that such abuse costs Nevada $3.6 billion annually, adding approximately $1,042 per person in hidden costs. This situation increases prices for businesses and consumers alike, making essentials like insurance, housing, and transportation more expensive. Addressing legal system abuse is deemed crucial for alleviating financial burdens on Nevada families.

According to InsuranceRateReporter.com on February 18, a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics like third-party litigation funding (TPLF) and jury anchoring contribute to rising insurance costs with an estimated $529 billion impact on the U.S. economy. The survey reveals that 69% of Americans believe these practices inflate insurance premiums, while 86% support legal reforms to address this issue. However, many remain unaware of these tactics; 75% are unfamiliar with jury anchoring and 70% do not recognize TPLF.

Tray Abney is also a partner at the Nevada-based government affairs firm Abney Tauchen Group. Previously, he served as director of government relations for the Reno+Sparks Chamber of Commerce from 2007 to 2017. From 2003 to 2006, he was legislative director for former Nevada U.S. Representative Jim Gibbons and later served as chief lobbyist when Gibbons became governor.