David Williams, president of the Taxpayers Protection Alliance (TPA), said that mass tort litigation diverts capital from the economy, adversely affecting businesses and taxpayers. He made this remark in a January 3 op-ed.
"The mass tort suits promoted by profit-motivated legal firms and financed by outside investors extract money from the general economy," said Williams. "Costs of excessive mass tort litigations could be greatly reduced by state and/or federal regulations that impose reasonable rules on litigators."
According to Judicial Hellhole, California has led in nuclear verdicts in personal injury and wrongful death cases, with 199 such verdicts between 2013 and 2022. These cases, which include auto accidents and product liability claims, resulted in over $9 billion in damages, with Los Angeles accounting for over one-third of them. Recent examples include a $61 million wrongful death verdict in December 2023 and an $80.2 million total from multiple unlawful termination cases in April 2024.
Starting January 1, 2025, California drivers will be required to meet new, higher minimum liability insurance limits under Bill 1107. The coverage for injury or death to one person will increase from $15,000 to $30,000, and for multiple persons, it will rise from $30,000 to $60,000. Property damage coverage will also more than triple from $5,000 to $15,000. According to the Department of Motor Vehicles (DMV), this offers increased financial protection in the event of accidents.
According to CRC Group, third-party litigation funding (TPLF) has become an $18 billion global industry, with 52% of the funds spent in the U.S., fueling social inflation and increasing jury awards. As litigation funders finance cases in exchange for a share of the settlement, insurance companies face higher liability costs leading to higher premiums and deductibles for consumers. TPLF is used in various cases including personal injury, mass torts, and commercial disputes contributing to large settlements and awards across sectors.
Insurify reports that California drivers faced a 45% increase in full-coverage insurance rates last year despite state consumer protection regulations requiring approval for rate hikes. Following COVID-19 shutdowns insurers have struggled with rising costs causing many to exit certain markets. As of January 1, 2025 new legislation will double and triple the state's minimum auto insurance limits leading to an anticipated 54% rate increase in 2024 to cover higher protection requirements.
According to the Taxpayers Protection Alliance website Williams has over 30 years of experience in Washington D.C., specializing in identifying and eliminating government waste. He has advised taxpayer groups internationally including those in South Korea France and Great Britain.