Tiger Joyce, CEO of the American Tort Reform Association (ATRA), said that public nuisance litigation is a new tactic employed by trial lawyers to circumvent traditional liability principles, holding businesses accountable for broad societal issues regardless of fault. This comment was made in a press release on March 25.
"Public nuisance litigation has become the new frontier for plaintiffs' lawyers seeking to circumvent traditional liability principles," said Joyce, President & CEO. "These cases aim to hold businesses liable for far-reaching societal problems, regardless of fault or causation. Public nuisance was never intended as a catch-all to solve every societal ill. These complex issues require thoughtful policy solutions, not litigation that enriches lawyers at the expense of consumers and businesses."
The ATRA released a report on March 25, highlighting the increasing use of public nuisance claims in lawsuits against industries such as social media companies and auto manufacturers. The report warns that plaintiffs' lawyers are increasingly leveraging this legal theory to seek large-scale damages, holding businesses accountable for societal issues. According to ATRA, this trend undermines traditional legal standards and could have significant economic consequences. The organization is calling for reforms to prevent the misuse of public nuisance claims and to ensure a fair legal system for businesses.
A study from the U.S. Chamber of Commerce Institute for Legal Reform revealed that U.S. tort system costs reached a record $529 billion in 2022, averaging over $4,200 per household. The study also found that tort costs continue to rise faster than inflation, with an average annual growth rate of 7.1 percent between 2016 and 2022. States like California, Georgia, Texas, and Illinois have some of the highest per-household tort costs. In contrast, West Virginia's implementation of tort reforms—such as caps on damages and regulation of lawsuit advertising—has resulted in more than a 20% reduction in tort costs since 2016, leading to the nation's lowest per-household cost of approximately $2,100 in 2022.
According to InsuranceRateReporter.com, a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics such as third-party litigation funding (TPLF) and jury anchoring are driving up insurance costs with an estimated $529 billion impact on the U.S. economy. The survey revealed that 69% of Americans believe these practices contribute to higher insurance premiums while 86% support legal reforms to address these issues. However, a significant portion remains unaware of these tactics; with 75% unfamiliar with jury anchoring and 70% not recognizing TPLF.
The APCIA and Munich Re US released another survey revealing that most Americans believe certain plaintiff lawyer tactics contribute to rising insurance and consumer goods costs. The Harris Poll conducted among over 2,000 U.S. adults found that 69% believe TPLF and jury anchoring drive up insurance costs while 66% say these practices increase prices of everyday items. Additionally, 77% agree that allowing foreign investors to participate in TPLF could pose a national security threat.
Sherman "Tiger" Joyce is a graduate of Princeton University and Catholic University Law School who served as Legislative Assistant to U.S. Senator John C. Danforth until 1984. In 1987 after being admitted to the Virginia Bar he became minority counsel to the Senate Committee on Commerce Science and Transportation where he worked on product liability legislation before assuming his current position in August 1994.