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Op-Ed: Florida’s Small Businesses Are Paying The Price For Lawsuit Abuse

National Small Business Week is a time to celebrate the backbone of our economy: the entrepreneurs, family-owned shops, and local innovators who power our communities. Across Florida and the nation, small businesses create jobs, mentor the next generation, and keep our neighborhoods vibrant. They represent the very best of the American spirit: resilience, ingenuity, and hard work.

But behind the ribbon cuttings and well-deserved recognition lies a growing challenge that too often goes unspoken: lawsuit abuse.

Small business owners across Florida aren’t just worried about making payroll or keeping up with rising costs. They’re worried about being dragged into costly, unnecessary litigation. For many, the threat of a lawsuit isn’t hypothetical—it’s a constant cloud hanging over their operations, threatening their ability to expand and grow.

Unlike large corporations with in-house legal teams and deep pockets, small businesses don’t have the resources to fight prolonged courtroom battles. A single lawsuit can force a small business to raise prices, cut staff, delay expansion, or, in some cases, close its doors entirely. Even when a lawsuit claim lacks merit, the cost of defending against it often pushes small businesses toward settlements they can barely afford.

Lawsuit Court
Lawsuit File Source: Unsplash

Lawsuit abuse also takes an economic toll on Floridians. Research from The Perryman Group underscores the magnitude of the problem. Excessive tort costs impose nearly $400 billion in direct expenses on the U.S. economy each year, in addition to $600 billion in lost economic output. That translates into the loss of over 254,000 jobs and a hidden “tort tax” of $1,306 that is passed to Florida families in everyday expenses.

In Florida, these costs don’t stay confined to courtrooms. They show up in higher grocery bills, increased insurance premiums, and rising prices at local shops. Small businesses, operating on thin margins, have little choice but to pass these costs along to consumers. The result is a ripple effect that impacts every household.

Let’s be clear: a fair and balanced legal system is essential. When individuals are harmed, they deserve access to justice. But when the system is exploited for profit, it undermines that very principle. This dynamic diverts resources away from innovation, job creation, and growth and toward defensive measures that benefit no one.

During this National Small Business Week, we must not only celebrate small businesses and entrepreneurs, but also stand up for them by taking a hard look at how lawsuit abuse is affecting our economy and pursuing commonsense reforms that protect both justice and opportunity.

Florida’s small businesses aren’t asking for special treatment. They ask for fairness—a system that allows them to compete, grow, and serve their communities without the constant fear of frivolous litigation.

If we want our local economies to thrive, we must ensure that the legal environment supports—not stifles—the people who keep them running. The success of our small businesses is tied directly to the success of our communities. Protecting them isn’t just good policy—it’s an investment in our shared future.

About The Author: TOM GAITENS – Executive Director of Florida Citizens Against Lawsuit Abuse

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