Texas and Florida are leading in tort reform, bringing more business and economic growth to southern Boom Belt states, the Texas Conservative Coalition Research Institute (TCCRI) and The James Madison Institute (JMI) argue.
TCCRI was founded in 1996 by a group of state leaders determined to implement conservative public policies in state government based on the principles of limited government, individual liberty, free enterprise and traditional values. Florida-based JMI is dedicated to the ideals of limited government, economic freedom, federalism and individual liberty coupled with individual responsibility.
Their new joint report argues, “Texas’ and Florida’s economic dominance is the direct result of multi-decade efforts to create a predictable civil justice environment. These reforms spurred the business investment, population growth, and capital inflows that define the Boom Belt.”
They also argue this competitive edge “is under threat” by trial lawyer organizations. In Florida, the Florida Justice Association is targeting pro-business politicians to unseat in state legislative races, the JMI argues. In Texas, plaintiff-aligned groups are funding candidates and PACs to weaken reforms the state legislature has implemented, TCCRI argues.
“Texas and Florida are enjoying a period of unprecedented economic growth, much of which is the result of hard-fought reforms to civil litigation and tort litigation policy. Those policies cannot be taken for granted. They must be maintained with renewed focus in order to maintain the Boom Belt status our states have earned,” the report states.
At a Texas Stock Exchange roundtable in Miami, Texas Gov. Greg Abbott, Florida Gov. Ron DeSantis, Securities and Exchange Commission Chairman Paul Atkins, Citadel Securities President Jim Esposito and TXSE Founder & CEO Jim Lee pointed to Texas’ and Florida’s pro-growth policies they argue are driving the economy, attracting businesses and causing more residents to relocate there, The Center Square reported.
Texas and Florida are leading economic growth in 11 Boom Belt states, they argue. Boom Belt states include Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.
Texas-based The Perryman Group and Florida-based Protecting American Consumers Together, point to legal reforms in Florida that directly impacted the insurance industry after dozens of companies had gone bankrupt. New reforms resulted in insurers returning to the market, premiums dropping and billions in economic activity being generated. By fixing a system that allowed lawsuit abuse to drive up costs, costs dropped with an ongoing rippling effect, they argue, The Center Square reported.
The TCCRI and JMI argue trial lawyers and their allied organizations are attempting to roll back reforms in both states, including targeting specific Republican primary elections, reviving one-way attorney fee structures the legislature repealed, expanding liability through new causes of action and repealing existing damages protections.
TCCRI and JMI also argue that third-party litigation financing is largely unregulated and is problematic because foreign financier disclosures aren’t required.
The groups recommend state lawmakers in Texas and Florida consider passing legislation to prevent unreasonable damage awards and rising public costs, including how future lost earnings and noneconomic damages are calculated and limiting medical negligence liability. They also urge lawmakers to pass legislation related to the risks of third-party litigation funding, including mandatory disclosure of funding agreements and safeguards against foreign government and sovereign wealth fund involvement in U.S. litigation.
In response to the report’s findings and recommendations, Chairman of the Texas House Committee on Judiciary and Civil Jurisprudence, state Rep. Jeff Leach, R-Plano, said, “We absolutely must continue to attack the proliferation of abusive and frivolous lawsuits in Texas while at the same time ensuring the doors to the courthouse are wide open for injured Texans to pursue and obtain justice. It can be done — and anyone interested in pursuing and working in good faith to achieve both objectives has a seat at the table as we prepare for the 90th legislature.”
