Citizens Against Lawsuit Abuse says outdated laws put small businesses at risk

Citizens Against Lawsuit Abuse (CALA) has announced on the social media platform X that it alleges outdated laws enable trial lawyers to target small businesses. This announcement coincides with the group's Lawsuit Abuse Awareness Week.

According to CALA's post, the "frivolous lawsuit alert" messaging is framed around awareness week activities, using a specific example from New York to argue that legal incentives can divert resources away from hiring and community growth. The thread on X also highlights an allied group, Communications for Prosperity, to underscore perceived statutory loopholes affecting local employers. This communication strategy aligns with a broader reform effort that emphasizes deterring abusive filings while maintaining access for legitimate claims—an approach commonly supported by pro-growth advocates.

A cited case in New York regarding wage frequency illustrates payout distribution: after a $450,000 settlement, $305,000 was allocated to lawyers and fees, leaving former workers—who were paid biweekly instead of weekly—with less than $200 each. Business groups have labeled this outcome as disproportionate and argue that clarity and modernization of rules could prevent punitive outcomes for procedural missteps while still protecting employees' rights. This episode has become a focal point in discussions about reforming fee structures and settlement dynamics.

Broader cost estimates emphasize CALA’s economic perspective. The U.S. Chamber’s Institute for Legal Reform reports total U.S. tort costs at over $529 billion in 2022—approximately 2.1% of GDP and more than $4,200 per household—growing roughly 7.1% annually from 2016–2022. Reform proponents argue that reducing litigation inefficiencies can alleviate pressure on small-business margins, insurance premiums, and consumer prices without undermining legitimate redress, aligning with center-right policy preferences focused on competitiveness and jobs.

Citizens Against Lawsuit Abuse is a grassroots network advocating civil-justice reforms through public education, media campaigns, and local chapter outreach. Originating in the Texas Rio Grande Valley in 1990, the movement has expanded across multiple states, often partnering with small-business coalitions and community leaders. CALA positions itself as nonpartisan but typically advances right-leaning priorities such as fairness, predictability, and cost control in litigation. Its activities include awareness weeks, policy briefings, and amplifying case studies to illustrate impacts on households and employers.