Georgia's excessive tort costs result in an $810 million annual loss, or $1,415 per resident, impacting the state's fiscal health and economy. This is according to a new report from The Perryman Group. The findings, released on November 25, 2024, highlight the broader financial impact on federal, state, and local government revenues.
The report states that Georgia's annual tort costs contribute to $2.9 billion in federal revenue losses, $810 million in state losses, and $674 million in local government losses. In the transportation and warehousing sector, the impact includes $7.2 billion in total expenditures, $4.6 billion in lost gross product, $3 billion in reduced personal income, and 33,800 job losses each year.
According to Judicial Hellholes, third-party litigation funding (TPLF) in Georgia has fueled excessive lawsuits and nuclear verdicts. This situation allows funders to charge high rates without oversight. The unchecked growth burdens industries like transportation and automotive with soaring insurance premiums and inflated litigation costs. It strains businesses and consumers while enriching funders at the expense of justice and economic stability.
Attorney advertising has surged significantly. Plaintiff lawyers spent about $6.8 billion on ads between 2017 and 2021, resulting in 77 million national and local commercials. According to Munich RE, this increase coincides with the growth of TPLF as more advertised claims attract investors seeking a share of potential settlements.
The Perryman Group is based in Waco, Texas. It is an economic research firm with over 40 years of experience serving more than 3,000 clients including global corporations and U.S. Cabinet Departments. According to its website, the firm has completed over 1,000 public policy studies.