American Tort Reform Association places Ohio legislature on ‘Heat Watch’

The American Tort Reform Association (ATRA) has placed Ohio's legislature on "Heat Watch" in its latest Legislative HeatCheck report. This decision was announced in a press release and is attributed to efforts to reform public nuisance lawsuits and third-party litigation funding.

According to the ATRA’s Legislative HeatCheck report, Ohio’s House Bill 126 aims to address the inappropriate use of public nuisance lawsuits related to product liability by amending Ohio’s Products Liability Law. The bill seeks to prohibit claims that argue a product’s design, manufacture, marketing, distribution, or sale interferes with a public right. These claims are often used to tackle broad policy issues rather than direct harm. The legislation intends to create a fairer and more predictable legal environment for businesses and consumers by focusing lawsuits on clear, individual harm instead of expansive public policy concerns.

Senate Bill 10 and House Bill 105 are also highlighted in the ATRA report. These bills focus on increasing transparency and fairness in third-party litigation funding in Ohio. They require disclosure of contracts where outside funders cover litigation costs and seek to ban foreign-based litigation funders to protect the court's integrity. The reforms aim to prevent funders from influencing legal decisions and curb abusive litigation practices that can inflate costs for defendants and taxpayers.

The ATRA analysis underscores the economic consequences of excessive litigation costs in Ohio, estimating an annual "tort tax" of $1,370 per resident or over $5,480 for a family of four. This financial burden is associated with the loss of more than 140,000 jobs statewide and a $16.1 billion reduction in the state’s Gross Domestic Product (GDP). Additionally, the report links these tort costs to $829.1 million in lost state revenue, demonstrating the broader impact of lawsuit abuse on Ohio’s economy.

According to its official website, the American Tort Reform Association is a nonprofit organization committed to achieving a fair, balanced, and predictable civil justice system across the United States. The organization provides research, advocacy, and education on legal reforms affecting courts and litigation practices. Its mission focuses on promoting reforms that protect consumers, support economic growth, and ensure equitable access to justice.