Lawsuit Tax and “Nuclear Verdicts” Are Driving Up Consumer Costs in Texas
Texas Gov. Greg Abbott has proclaimed October 6-10 as Lawsuit Abuse Awareness Week (LAAW) in Texas, highlighting the costs and consequences of lawsuit abuse on the state’s civil justice system and its impact on Texas consumers.
During the annual LAAW observance, Texans Against Lawsuit Abuse (TALA) is working to highlight how Texas has led the way in civil justice reform, while emphasizing that continued lawsuit abuses must be addressed through continued vigilance locally
and common-sense reform at the State Capitol.
“Lawsuit abuse costs us all as consumers, kills jobs and erodes confidence in our legal system,” said Robert Wood, spokesperson for Texans Against Lawsuit Abuse. “We’re grateful for Gov. Abbott turning Texans’ attention to Lawsuit Abuse Awareness Week. Lawsuitabuse is a critical issue facing our courts, impacting small businesses, and costing everyday Texans in higher costs for goods and services.” Read the Governor’s LAAW proclamation online. Texans Against Lawsuit Abuse noted a few of the ways that Texans experience the real economic impact of lawsuit abuse in the state: Texans pay an average of $1,725 more for goods and services every year as the cost of lawsuits and massive court awards is passed on to consumers. This $1,725 lawsuit tax—which drives up the price of everything Texans buy, from groceries to housing to insurance—is higher than the national annual average lawsuit tax of $1,666 per person, according to a recent study released by Citizens Against
Lawsuit Abuse (CALA).
Cities and regions throughout Texas feel the lawsuit tax most significantly, including: San Antonio-New Braunfels Houston-The Woodlands-Sugar Land Dallas-Fort Worth-Arlington Austin-Round Rock-Georgetown Between 2009 and 2023, Texas led the nation in the number of “nuclear verdicts,” which are court awards exceeding $10 million. A total of 207 nuclear verdicts
were awarded in Texas during that time, totaling more than $45 billion—costs that are often ultimately borne by consumers throughout the state.
Wood said Texans play a pivotal role in fighting lawsuit abuse, including by being smart legal consumers. TALA provides practical tips for legal consumers in the Texans Against Lawsuit Abuse Legal Consumer Guide. “We can all do our part to focus on jobs, not lawsuits, ensuring our courts are used for justice, not greed,” added Wood. “We’re headed into an election year in 2026, and lawsuit reform is on the ballot. We’re encouraging voters to get educated and ask their candidates about their stance on lawsuit abuse in our state.”
LAWSUIT ABUSE AWARENESS WEEK (OCT. 6-10, 2025) SHINES ALIGHT ON COSTS, CONSEQUENCES OF LAWSUIT ABUSE IN TEXAS
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