Op-Ed by Tom Gaitens, Executive Director, Floridians Against Lawsuit Abuse (FL CALA)
The allure of Florida as a paradise has always attracted individuals seeking a better life. Historically, immigrants and individuals from other states flocked to Florida for the promise it offered. Yet today, that promise is overshadowed by soaring expenses and a hidden economic drain: lawsuit abuse.
The cost of living in Florida has escalated dramatically in recent years. Housing prices, insurance premiums, and the cost of groceries have all surged, creating a financial strain for many residents. Beyond these visible expenses, a less obvious but equally damaging factor is the prevalence of lawsuit abuse within the state. All Floridians, whether they know it or not, are directly affected by the hidden costs associated with lawsuit abuse tied to the increasing amount of frivolous lawsuit cases being filed in our courts. And the hidden costs associated with theseare dreaded ‘tort taxes’. Lawsuit abuse is driving up costs across the board and affecting every aspect of life in the state.
While the Florida Legislature and Governor DeSantis have made strides with tort reform during the 2022 and 2023 cycles, the deep-pocketed billboard trial lobby has spent heavily to target the reformers this cycle. Florida lawmakers should take additional steps to further alleviate financial burdens. This would benefit all of our communities and greatly foster a more vibrant and robust economy across our state.
Lawsuit abuse not only burdens the courts, but also imposes substantial financial costs on businesses and consumers. Companies, particularly small businesses, face significant expenses from legal defenses, settlements, and higher insurance premiums. These costs are inevitably passed on to consumers, leading to increased prices for goods and services. This inflation affects everything from everyday groceries to healthcare and utilities, making it increasingly difficult for Floridians to manage their budgets and maintain a decent standard of living.
The Perryman Group estimates that the “tort tax” costs Floridians about $1,056 per person each year. This hidden tax leads to the loss of tens of thousands of jobs and drains billions of dollars from the local economy. It also reduces the state’s gross domestic product, weakening Florida’s economic stability.
The consequences of lawsuit abuse extend beyond financial costs. Businesses forced to spend on legal defenses and higher insurance premiums have less money to invest in growth and development. This cycle of increased costs and reduced economic activity affects job creation and quality of life for residents. Additionally, the fear of litigation fosters a culture of defensiveness among business owners, who are more concerned with avoiding lawsuits than with innovation.
For families, the increased cost of living due to the “tort tax” can make the difference between buying groceries or paying bills on time. Small business owners face a constant threat of litigation that can be the deciding factor between remaining in business or closing. Despite its significant impact, the “tort tax” is often overlooked, even though it affects various aspects of life, including costs, innovation, and job opportunities.
Specifically, opportunistic attorneys are making matters worse for Florida’s legal system by driving up filings of predatory lawsuits for their own financial gain. The resulting abuse creates an economic drag, akin to driving with the brakes on while trying to accelerate. The result is over 200,000 lost jobs and more than $23 billion in economic damage due to trial lobby abuses.This also leads to significant revenue losses for local and state governments, exceeding $1 billion annually.
Lawsuit abuse is a serious issue with far-reaching consequences for all Floridians. The constant threat of litigation undermines economic stability, restricts job creation, and drives up the cost of living. Addressing this problem is critical for alleviating some of the financial burdens faced by residents and fostering a more vibrant and robust state economy.
Lawmakers must take action to combat lawsuit abuse and mitigate its effects. Floridians deserve relief from the hidden costs of litigation. It is time for our political leaders to listen and act on this pressing issue before it’s too late.
