Lawsuit Abuse Impact
America's runaway legal system imposes burdensome costs on workers, consumers, small businesses, and healthcare. The cost of America's lawsuit-happy culture totals $261 billion a year, or $880 per person, according to seminal research by Tillinghast-Towers Perrin (2006). According to a 2007 study commissioned by the Institute for Legal Reform, small businesses alone pay $98 billion a year to cover the cost of America's tort system -- money that could be used to hire additional workers, expand productivity, and improve employee benefits.
Lawsuit abuse also has a damaging impact on healthcare. In some areas of the country, medical liability lawsuits have driven malpractice insurance rates through the roof, driving doctors from their practices and closing trauma centers and emergency rooms across the country. The American Medical Association reports that there are now 17 states in a full-blown medical liability crisis.
The impact of lawsuit abuse is often discussed in terms of the economy, healthcare costs, and the price of consumer goods. But in the end, it is everyday Americans and their families who must pay the high price of lawsuit abuse.