Florida’s legal system is carrying a multi-billion dollar weight that trickles down to nearly $1,800 for every resident in the state, according to new data released Tuesday. Tom Gaitens, Executive Director of the Florida Chapter of Citizens Against Lawsuit Abuse (CALA), unveiled these figures based on a landmark study titled Economic Benefits of Tort Reform: An Assessment of Excessive US Tort Costs and Potential Economic Benefits of Reform.
The report highlights a national trend of rising litigation expenses, with direct costs now approaching $400 billion annually across the United States. In Florida specifically, excessive tort costs on businesses have climbed to more than $60 billion.
This financial burden has resulted in a $30.5 billion hit to the gross state product and a loss of approximately 254,000 jobs. On an individual level, the study suggests that the “tort tax” costs each person $1,771, while the negative impact on per capita personal income exceeds $19,000 annually.
Despite the high costs, Gaitens noted that Florida’s recent legislative actions have begun to move the needle in the opposite direction. He credited comprehensive reforms passed in 2022 and 2023 for stabilizing the state’s civil justice system.
“What happens when a state chooses reform instead of complacency?” Gaitens said during the data release. “Florida chose reform. In 2022 and 2023, state leaders passed sweeping changes to rebalance the civil justice system. They weren’t cosmetic adjustments. They were structural corrections. And the results have been measurable, preserving $4.2 billion in additional business activity and supporting more than 29,000 jobs across Florida.”
Gaitens was joined by Bill Herrle, the Florida Executive Director of the NFIB, and former Representative Jim Kallinger, who currently chairs the Small Business and Consumers Alliance. Both leaders emphasized that while recent reforms are providing relief to small businesses, the state must remain committed to these changes to see long-term benefits.
The discussion also turned toward the future of Florida’s legal landscape, specifically regarding third-party litigation financing. This practice involves outside investors funding lawsuits in exchange for a portion of the settlement. Gaitens pointed to Senate Bill 1396 and House Bill 1157 as potential solutions currently in the legislative session.
These bills aim to increase transparency in how investors participate in the legal process, with proponents arguing they will prevent outsiders from meddling in cases for pure profit or using the discovery process to access proprietary business information.
While CALA maintains that a healthy civil justice system is essential for Florida’s small businesses and citizens, they argued that the current system is frequently abused. They stated that such exploitation leads to excessive penalties that ultimately hurt hardworking individuals and ordinary businesses more than the legal entities involved.
READ: Florida Gov. DeSantis Names Four New Judges To Benches In Polk And Alachua Counties
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