CHARLESTON – A legal reform group has announced its annual Lawsuit Abuse Awareness Week.
According to West Virginia Citizens Against Lawsuit Abuse, lawsuits continue to have a negative impact on our economy and reduce access to affordable healthcare for West Virginians.
This year’s annual CALA economic study found lawsuit abuse results in $160.1 billion in excessive tort costs, costing every American about $488 in a "tort tax." CALA says these excessive costs have hurt American businesses and consumers, eliminating more than $435 billion in overall economic activity. This equates to 1.2 percent of the overall U.S. economy.
Furthermore, CALA's study showed that tort costs were found to impact 2,211,450 jobs across the United States with a total loss of $143.8 million in wages and a $435.6 billion decrease in the economic pie. It says that because of these tort costs, the federal government lost $29.5 billion in tax revenue, while state and local governments lost $18.1 billion in tax revenues. In West Virginia, the 'tort tax' is $323 per person.
WVCALA says the numbers show the damaging impact of lawsuit abuse throughout the nation and in West Virginia and why it is imperative for necessary reforms to be implemented legislatively.
WVCALA says it has had multiple successes this year, ensuring that appropriate policy is enacted to prevent the abuse of our legal system.
The West Virginia Legislature passed SB 277, which established one of the strongest COVID liability protections in the country. The Legislature also passed SB 439, which allows seatbelt misuse or non-use to be admissible as evidence in considering damages in a civil suit. That means evidence of seatbelt non-use can now be examined in its role for contributing to the injuries of a driver or passenger.
Both bills were signed into law by Governor Jim Justice.