Is it Time to Give Tort Reform Another Look?

While everyone is legally entitled to their day in court, there are definite costs to our legal system as it operates. Lawsuits are a drag on the economy and raise the costs of doing business. Here are some considerations as they relate to tort reform in the U.S.

The US is the Most Litigious Society on Earth

Legally Mine explains that 94% of the world’s lawsuits are filed in the United States. Not only that, but the U.S. has the highest percentage of its gross domestic product that goes to litigation costs. Further, 80 percent of the world’s lawyers live in the U.S. All of this adds up to a self-sustaining system that leads to litigation as a way of life in this country. The American mentality considers lawsuits as the solution to practically every problem. This adds up to increased costs that are spread throughout the economy. 

Tort Costs Are Increasing

Medical Liability Monitor explains that in 2009, the cost of the U.S. tort system was estimated at a quarter of a trillion dollars. These numbers continue to increase since then at a rate far faster than that of inflation. These costs impact not only the corporations, but they also impact the consumer because the costs of this system end up being passed along to the customer in the form of higher prices. It is estimated that the cost of this system exceeds $1,000 per every America for each year. The system impacts not only large companies, but it also can drive small businesses out of businesses as well.

The Benefits of Tort Reform

If the tort system is reformed, it will lower the cost of doing business in the United States and encourage innovation. Vitanna explains that tort reform would not close off the justice system to litigants. Instead, it would shift some of the costs to unsuccessful litigants and discourage frivolous litigation. Beyond helping businesses, it will also help improve the health care system since malpractice lawsuits impede the delivery of health care services by driving doctors out of business. Any litigation costs that are avoided will help companies become more profitable and either lower prices or pay their workers better wages.

The U.S. legal system has simply become out of control and needs to be limited in a way that respects the rights of litigants while lower the costs of doing business for the corporations who struggle with the high costs.

Posted in

Major Public Health Crises the U.S. is Dealing With Today

By editor | September 29, 2022

It seems that there is no end to the public health crises facing the United States. Polio, high rates of tobacco use, HIV/AIDS, and…

Kelly Roach Coaching Unstoppable Reviews

The Kelly Roach Coaching Unstoppable Reviews are In: 5-Stars Across the Board

By Staff Writer | September 29, 2022

Kelly Roach started her career by working at a Fortune 500 company, where she quickly climbed the ranks to the youngest Senior Vice President…

kitchen disinfectant safe

Is Your Household Disinfectant Harming Your Health?

By Staff Writer | September 29, 2022

The last few years have given new life to disinfecting. And while killing germs that lurk on surfaces is always a good idea, you…

How to Become an Entrepreneur Without Doing All the Work

By editor | September 20, 2022

Entrepreneurship can sometimes seem like an exhausting, draining job. And that’s because it is! There are lots of ways to explore your entrepreneurial options…

Sunil Wadhwani McAllen

From Humble Beginnings to Successful Hotelier: Sunil Wadhwani

By Staff Writer | September 19, 2022

South Texas hotelier Sunil Wadhwani is a success by any definition of the word. He owns eight hotels and has been in business for…

How to Reduce Expensive Mistakes in the Workplace

By editor | September 19, 2022

No one is perfect, and that includes employees. Sometimes, mistakes can be costly for a business. To minimize the amount of money wasted on…

Ralph Sanders

From Darkness to Light: Ralph Sanders is an Inspiration for Troubled Youth

By Staff Writer | September 17, 2022

Sometimes, we have to reach our darkest hour in order to see the light. For Ralph Sanders, this couldn’t be more true. After going…

Dr. Louis Hampers

Emergency Pediatrician Dr. Louis Hampers Exceeds Expectations At Every Turn

By Staff Writer | September 14, 2022

Described as talented, focused, passionate, engaging, and energetic, Dr. Louis Hampers has spent his career working tirelessly as an Emergency Pediatrician. Known for always…

Why You Should Listen to What Your Body is Telling You

By editor | September 14, 2022

Our bodies are incredible, layered, complicated machines. Our nervous system is perfectly constructed to deliver signals to the brain about all of the goings-on…