Can You Believe We Texans Pay Over $1,000 in Lawsuit Abuse Taxes

Yep, it's true, we Texans are paying the price for lawsuit abuse, according to this latest study from The Perryman Group for Citizens Against Lawsuit Abuse (CALA).

A recent economic study reveals that Texans are paying a hidden "lawsuit tax" of $1,725 each year. That’s higher than the national average of $1,666, and it’s driving up the cost of everyday goods and services, including groceries, housing, and insurance.

Lawsuits Cost Everyone, Even Those Not Involved

Prepared by The Perryman Group for Citizens Against Lawsuit Abuse (CALA), the study highlights the ripple effect of excessive lawsuits and large court awards—often called “nuclear verdicts.” These are judgments of $10 million or more, and from 2009 to 2023, Texas saw 207 such verdicts totaling over $45 billion.

“We all pay the cost of lawsuits, win or lose,” said Bobby Jenkins of CALA Central Texas. “These legal costs are passed down to consumers, small businesses, and even local governments.”

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A Call for Reform in Austin

As the Texas Legislature considers Senate Bill 30, aimed at curbing excessive court awards, advocates like Mike Hachtman of Texans Against Lawsuit Abuse say it’s a critical step forward. The bill has already been named a priority by Lt. Governor Dan Patrick.

The Perryman study shows that lawsuit-related costs in Texas result in:

• $33.6 billion in direct costs
• $52.6 billion in lost gross product
• $2.7 billion in lost state revenue
• 453,426 job losses

In regions like Austin, Dallas-Fort Worth, and Houston, the per-person lawsuit tax is even higher, reaching up to $2,746 in some areas.

Protecting Access, Promoting Fairness

Reform advocates stress the need to maintain access to courts for legitimate claims while reducing abusive practices that hurt Texans' wallets.

For more information, visit www.tala.com.