ATRA vice president: SB 30 is Texas’ 'most significant civil justice reform effort' in 15 years

Lauren Sheets Jarrell, vice president of civil justice policy at the American Tort Reform Association (ATRA), said that Senate Bill 30 is Texas's most significant civil justice reform in 15 years. She described it as critical to ending "jackpot justice" and protecting Texans from the costs associated with legal system abuse.

"This is the most significant civil justice reform effort we've seen in Texas in more than 15 years," said Sheets Jarrell, Vice President and Counsel for Civil Justice Policy. "We commend Senate leaders, House Judiciary Chair Jeff Leach and the committee for moving this critical legislation forward, helping to ensure that true justice prevails in Texas – not jackpot justice for a select few. Passing this bill will help rein in meritless lawsuits, preserve Texans' access to the courts, and ensure the state doesn't become a full-blown ‘Judicial Hellhole. Runaway verdicts and abusive litigation practices hurt everyone – consumers, job creators, and Texas families alike. We encourage lawmakers to stand with Texas families, workers, and businesses by supporting these bills and ensuring our courts deliver justice that is fair, predictable, and rooted in evidence."

According to ATRA, Senate Bill 30 represents a pivotal change in Texas's civil justice landscape. The bill seeks to address the increasing occurrence of nuclear verdicts—jury awards exceeding $10 million—which are perceived as threats to economic growth and are said to cost Texas families nearly $6,900 annually in a "tort tax." SB 30 aims to reduce inflated "phantom" medical damage awards and restrict practices where plaintiffs' attorneys work with captive doctors to inflate medical costs. The bill is sponsored by Senators Charles Schwertner and Brent Hagenbuch and advocates for transparency and fairness in damage calculations.

In 2024, Texas led the nation with 23 nuclear verdicts, more than any other state, according to Marathon Strategies’ report titled Corporate Verdicts Go Thermonuclear. These cases contributed to a national increase in such verdicts, which rose by 52% from the previous year, amounting to $31.3 billion. Texas also ranked third in total award sums with $3 billion in verdicts, following Nevada and California. This volume underscores Texas’s growing exposure to high-stakes corporate litigation. In contrast, Florida experienced a decline in rankings after recent tort reform efforts.

A study by The Perryman Group, commissioned by Citizens Against Lawsuit Abuse (CALA), found that Texans pay an average of $1,725 annually due to excessive lawsuits and massive court awards—higher than the national average of $1,666. This "lawsuit tax" increases the cost of goods, insurance, and services for consumers and businesses alike. From 2009-2023, Texas led the nation with 207 nuclear verdicts totaling over $45 billion. These lawsuits have resulted in $33.6 billion in annual direct costs and over 450,000 lost jobs across the state. Business leaders and CALA officials are advocating for reforms aimed at limiting inflated medical bills, enhancing billing transparency, and ensuring fair noneconomic damage awards.

A study from the U.S. Chamber Institute for Legal Reform indicated that Texas ranks among the top five states for nuclear verdicts, with 130 personal injury and wrongful death cases resulting in approximately $16 billion in awards from 2013 to 2022. The study pointed out how "anchoring" tactics—where attorneys suggest arbitrary high-dollar damage amounts—significantly contributed to inflating jury awards. An example cited involved a $39 million verdict in an auto accident case after a plaintiff’s lawyer proposed a symbolic per-mile damage figure; this was later overturned by the Texas Supreme Court due to improper tactics. Such excessive awards contribute to higher insurance premiums and consumer costs while undermining fairness within the legal system.

Jarrell received her Bachelor of Arts degree from Georgetown University where she was a four-year starter and captain of the varsity field hockey team. She earned her law degree cum laude from Georgetown University Law Center. During law school, she served as a legal intern for Judge Joseph Beshouri of the Washington D.C. Superior Court and Judge Shirley Watts of the Baltimore City Circuit Court. She is currently a member of the New York Bar.