American Tort Reform Association urges DOJ to address state laws that unduly burden businesses

The American Tort Reform Association (ATRA) has submitted comments to the Department of Justice (DOJ), highlighting state laws and regulations that it claims burden businesses, stifle innovation, and increase consumer costs. This announcement was made in a press release.

According to ATRA's official statement, product liability lawsuits against federally approved products pose a significant challenge for U.S. businesses. The association notes that even when companies adhere to federal safety standards for products like medical devices, pesticides, and pharmaceuticals, they still face expensive litigation in state courts. ATRA is urging the DOJ and Congress to support federal preemption of these lawsuits to ensure consistency and mitigate duplicative liability risks.

The press release also highlights public nuisance litigation as an escalating threat to manufacturers. ATRA explains that state and local governments are increasingly using nuisance claims to target businesses over global issues such as climate change, which exceed the scope of state law. It references cases like Chevron U.S.A. Inc. v. Plaquemines Parish and Suncor Energy Inc. v. County Commissioners of Boulder County, where both ATRA and the DOJ have submitted briefs advocating for the dismissal of climate-related nuisance lawsuits to prevent states from imposing nationwide regulatory preferences.

ATRA further warns about the dangers of third-party litigation funding (TPLF), describing it as a multi-billion-dollar industry that remains largely unregulated. The association argues that without transparency requirements, TPLF could allow foreign investors to secretly influence U.S. lawsuits, posing national security and economic competitiveness concerns. It calls on policymakers to implement mandatory disclosure rules so courts, defendants, and the public are fully informed about external financiers involved in litigation.

The American Tort Reform Association is a nonprofit advocacy group dedicated to promoting reforms within the U.S. civil justice system. According to its website, ATRA collaborates with policymakers, business leaders, and legal experts to reduce excessive litigation costs and enhance predictability in the courts. The organization estimates that American families incur an annual "tort tax" exceeding $5,000 due to lawsuit abuse, emphasizing its mission to foster a fairer legal environment.