The U.S. Chamber Institute for Legal Reform announced on Feb. 17 that it has released a new paper urging Indiana lawmakers to address tort costs, which the organization describes as a hidden tax on families.
The issue is significant because, according to the Institute for Legal Reform, every Indiana household pays almost $3,000 on average due to the state’s tort costs. The new paper, titled ILR Briefly: Indiana’s Liability Environment and Opportunities for Legal Reform, identifies six steps the legislature can take, including codifying public nuisance law to prevent its use as a super tort, limiting noneconomic damages in personal injury cases, addressing misleading lawsuit advertising, encouraging reasonable settlement offers, establishing constraints on negligent security claims, and allowing bifurcated trials. These measures aim to preserve the state’s competitive business climate and reduce costs passed on to families according to the Institute for Legal Reform.
Tort costs in Indiana reached $2,962 per household based on the latest available data. This amount equals 1.7 percent of the state’s gross domestic product (GDP) and grew at an average annual rate of 6.3 percent from 2016 through 2022. Regional comparisons show Indiana households bear a higher per-household burden than those in neighboring Ohio, both in total dollars and as a share of economic output. These figures illustrate the localized impact of litigation expenses on family budgets and state economic activity according to the U.S. Chamber of Commerce.
Nationally, the tort system cost $529 billion in 2022—equivalent to $4,207 per American household or 2.1 percent of U.S. GDP—with trends indicating continued growth in these expenses that affect consumers through higher prices for goods and services along with reduced job creation and investment. The aggregate costs highlight opportunities for states to implement targeted reforms that ease the overall burden on households according to the U.S. Chamber of Commerce Institute for Legal Reform.
The Institute for Legal Reform serves as the U.S. Chamber of Commerce’s dedicated legal reform organization focused on improving the civil justice system to support economic growth. The group conducts original research on tort costs and lawsuit climate surveys while developing policy recommendations for states to enact reforms such as damage caps and limits on abusive litigation practices. ILR partners with business leaders, lawmakers, and stakeholders nationwide to advance measures that lower costs for families and businesses while preserving access to fair dispute resolution. Its work targets emerging litigation trends that increase expenses across industries and households according to the Institute for Legal Reform.
