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ATRA warns bill could bring out-of-state lawsuits to Illinois courts

Policy Reform

Insurance Rate Review / 23 days ago

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Tiger Joyce, President for American Tort Reform Association | Linkedin

The American Tort Reform Association (ATRA) has called on Governor J.B. Pritzker to veto Senate Bill 328, cautioning that the legislation could attract out-of-state lawsuits to Illinois, endanger 208,000 jobs, and face significant constitutional challenges. This appeal was made through a press release issued by ATRA.

According to the American Tort Reform Association's June 9 press release, Senate Bill 328 would create unprecedented liability for businesses nationwide by allowing out-of-state plaintiffs to sue out-of-state businesses in Illinois courts for incidents with no connection to Illinois. The release states this would mirror measures vetoed twice by New York Governor Kathy Hochul over anti-business concerns and would place Illinois among only a handful of states with such sweeping jurisdiction. ATRA President Tiger Joyce emphasized that this legislation could result in a mass exodus of businesses and a sharp decline in investment, as no other state except Pennsylvania—designated as a "Judicial Hellhole"—has enacted similar laws.

The press release notes the bill’s language is "extraordinarily broad," with its definition of "toxic" covering not only dangerous chemicals but also products such as lifesaving medications, food, and baby formula. ATRA warns that this scope could draw a flood of litigation to notorious Illinois counties like Cook County, which hosts 91% of the state’s high-value civil cases despite having only 40% of the population. Additionally, Madison and St. Clair Counties remain hotbeds for asbestos litigation, earning both "Dishonorable Mentions" in ATRA’s 2023 Judicial Hellholes report, highlighting the potential for increased litigation tourism if the bill passes.

According to the 2023 Judicial Hellholes report from ATRA, Illinois suffers an annual loss of more than 208,000 jobs due to excessive tort costs. The same report details that each resident of Illinois pays an average of $1,919 every year in a hidden "tort tax," with the figure in Chicago rising to nearly $2,500 per person. These costs burden families and small businesses while discouraging investment and growth, making Illinois one of the costliest states in the nation for tort-related expenses.

The American Tort Reform Association is a national advocacy group dedicated to improving the civil justice system by combating lawsuit abuse and promoting legal reforms. According to its official website, ATRA publishes annual research—including the Judicial Hellholes report—tracks legislative trends and works with policymakers, business leaders, and legal professionals across the country. Its efforts are focused on reducing excessive litigation, encouraging economic growth, and ensuring fairness for both businesses and individuals within the U.S. legal system.

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