American Tort Reform Association names Montana a tort reform trailblazer

The American Tort Reform Association (ATRA) has recognized Montana as a "Tort Reform Trailblazer" for 2025, citing the state's legislative advancements in litigation funding transparency, attorney fee awards, and public nuisance claims. This designation was announced in ATRA's Legislative HeatCheck report.

According to the report, Montana's Senate Bill 511 mandates that third-party litigation funders disclose and register their involvement in legal cases. This measure addresses concerns about foreign influence within the state's judicial system. The transparency initiative is intended to protect judicial integrity by ensuring all parties are informed of external financial backers that could impact case outcomes. ATRA states that this reform aligns with national efforts to regulate litigation funding and prevent potential abuses.

Senate Bill 39, also highlighted in the report, revises attorney fee awards by requiring itemized billing and proportionality between fees and actual work performed by attorneys. The legislation aims to curb inflated legal fees that burden taxpayers, businesses, and individuals. By increasing accountability in fee awards, the law seeks to reduce litigation costs and promote a more equitable civil justice system in Montana.

House Bill 791 clarifies the definition and scope of public nuisance claims to prevent misuse as broad legal attacks on industries or property owners. The bill narrows who can be sued and limits permissible damages, ensuring nuisance laws are applied as intended rather than exploited for unrelated policy issues. This reform is designed to protect defendants from unwarranted lawsuits and create a fairer litigation environment.

The economic impact of excessive litigation in Montana is significant. ATRA estimates an annual "tort tax" of $871 per resident, correlating with the loss of approximately 8,480 jobs statewide, a $986.8 million decrease in GDP, and $182.552 million in lost state revenue each year. ATRA credits recent reforms with helping mitigate these impacts and fostering a more favorable business climate.

According to its official website, ATRA is a nonprofit organization focused on advancing reforms that promote fairness, balance, and predictability in civil justice systems nationwide. The group conducts legislative research, public education, and advocacy efforts, including publishing annual reports such as Legislative HeatCheck and Judicial Hellholes. ATRA's mission is to support legal reforms that protect consumers, drive economic growth, and enhance the fairness of the legal system.