By Tom Gaitens– Executive Director Floridia Citizens Against Lawsuit Abuse (FL CALA)
Florida lawmakers have a unique opportunity to build upon a successful foundation as the leader in smart civil justice reform. In fact, they are charged with a responsibility to protect the integrity of our courts and the economic well-being of families and businesses across the state by passing House Bill 1157, sponsored by Rep. Fabián Basabe (R-Miami Beach), and Senate Bill 1396, sponsored by Sen. Colleen Burton (R-Lakeland). Together, these commonsense reforms shine much-needed light on the growing and troubling practice of third-party litigation financing (TPLF), which is increasingly becoming a leading trial bar tactic contributing to civil justice abuses.
TPLF allows outside investors, often with no connection to a dispute, to bankroll lawsuits in exchange for a share of the payout. Since 2015, this industry has exploded into a multi-billion-dollar market, yet it remains highly unregulated and purposefully opaque. The result is a system where America’s courtrooms are increasingly treated like casinos—open for business to wealthy investors at the expense of American citizens, small businesses, and consumers. Adding insult to injury, foreign investors can often avoid paying taxes on their profits, while Floridians are left footing the bill.
The economic consequences are not abstract. According to recent analyses conducted by The Perryman Group on behalf of Citizens Against Lawsuit Abuse (CALA), TPLF costs the economy over $607 per household, per year in lost earnings and reduced purchasing power, driven by higher inflation and slower growth. That’s money that could be put towards weekly grocery or gas expenses. On top of that exorbitant cost, consumers end up losing an additional $192.79 annually in direct costs from TPLF due to inflation.
TPLF contributes to more than $31 billion in inflationary pressure, over $54 billion in lost economic output each year, and an estimated 454,450 jobs lost annually as businesses struggle with rising legal costs and uncertainty. When thinking about these losses, put simply: every extra dollar we’re spending on inflated prices for goods or insurance premiums is a dollar that isn’t going into a college fund, a home repair, or a family vacation. When big investment firms fund massive, drawn-out lawsuits to make a profit, they aren’t just hitting ‘big business.’ They are impacting all Americans. Companies hit by lawsuits are forced to raise prices just to stay afloat, and suddenly, you are the one paying more for goods and services, making it harder for people to save money.
All of these losses impact businesses nationwide. Excessive lawsuit abuse limits businesses’ ability to offer competitive wages, lower prices, or innovate for consumers. Due to business being down like this, the government ends up losing upwards of $15 billion in annual tax revenue is lost at the federal, state, and local levels. The biggest hit is to the federal government: approximately $10 billion lost. These finances would help fund public services, such as infrastructure, public health departments, education, public safety, and community utilities, to name a few essentials.
These are not just numbers on a page. As my colleague, Victor Gomez, National CALA Spokesperson, put it, “These findings confirm what we are already feeling at the checkout counter and when paying our monthly bills.” TPLF fuels a wave of speculative and prolonged lawsuits that raise prices across the economy, leaving families with less money in their pockets and fewer opportunities to get ahead—while outside investors reap millions.
HB 1157 and SB 1396 do not ban litigation funding. Instead, they demand transparency, disclosure of foreign involvement, and safeguards against improper influence. At a time when foreign actors are increasingly seeking leverage through economic and legal systems, Florida cannot afford to look the other way.
Passing these bills is about fairness, accountability, and protecting Floridians—from hidden financiers, rising costs, and a justice system distorted by secrecy.
Tom Gaitens– Executive Director Floridia Citizens Against Lawsuit Abuse (FL CALA)
