Texans for Lawsuit Reform announced on their X profile that nuclear verdicts are threatening the state’s economy and driving up business costs.
Nuclear verdicts, defined as jury awards exceeding $10 million, have become increasingly common. A recent study by the Institute for Legal Reform (ILR) analyzed 1,288 such verdicts from 2013 to 2022. The average award has increased to $89 million from $76 million, primarily due to rising payouts in product liability and negligence cases. According to the study, tactics like "reptile theory" and jury anchoring contribute to these large verdicts, which can potentially bankrupt small businesses, raise insurance and consumer costs, and undermine fairness in the civil justice system by turning trials into high-stakes windfalls rather than balanced resolutions.
According to the Austin American-Statesman, Texans pay an additional $1,725 annually on average for everyday goods and services due to the hidden costs of lawsuits and large court awards being passed down to consumers. In major cities, this "lawsuit tax" can reach as high as $2,746 per person, significantly above the national average of $1,666. Reining in excessive litigation and outsized verdicts is deemed essential to keeping costs down for Texas families.
Texans for Lawsuit Reform is a nonpartisan statewide advocacy organization founded in 1994 with the aim of promoting a fair, efficient, and balanced civil justice system in Texas. Representing more than 16,800 supporters from 1,255 trades and professions across 900 Texas communities, they work through legislative advocacy, political engagement, and public education to combat frivolous lawsuits and reduce excessive litigation costs.