Legal system abuse creates unnecessary burdens for consumers and businesses alike.

Unnecessary, profit-driven lawsuit abuse comes at a high price, as increased litigation costs are passed down to households and businesses. According to the U.S. Chamber Institute for Legal Reform, the average American household pays a more than $3,600 “tort tax” as a result of rampant legal system abuse by trial attorneys.

Nationwide, some trial lawyers continue to use the threat of burdensome lawsuits for their own financial gain with little or no benefit for consumers. Using manipulative tactics to influence the litigation process, trial lawyers flood our legal system with frivolous lawsuits that turn our courts into money-making machines for bad actors and investors that are often unrelated to a case.

These abusive practices lead to higher damage awards and increased settlement costs—which get passed down to consumers and businesses in the form of higher prices for goods and services. Moreover, legal system abuse—including third-party litigation financing, bad faith claims, and one-way attorney fees—distort what should be fair and reasonable compensation for a legitimate loss.

APCIA is working to address questionable attorney practices in order to protect the integrity of our justice system and ensure it remains balanced, fair to all participants, and able to resolve legitimate claims in a timely manner. We are working with policymakers, industry leaders, consumers, and the business community nationwide to pass meaningful civil justice reforms that reduce or eliminate legal system abuse in any form it takes.

Source: Voice of America’s Insurers