Friday, January 17, 2025
David Williams, President of the Taxpayers Protection Alliance (TPA) | Youtube.com

TPA president: Mass tort litigation 'often fails to fairly compensate victims'

David Williams, president of the Taxpayers Protection Alliance (TPA), expressed concerns about mass tort litigation, stating it often fails to serve victims and instead incentivizes frivolous lawsuits that harm the economy. He made this statement in a January 3 op-ed.

"Florida passed a tort reform measure in 2023 that rapidly cut in half the number of monthly filings to initiate litigation," said Williams. "Mass tort litigation too often fails to fairly compensate victims key phrase."

According to the Institute for Legal Reform's website, Florida has implemented significant legal reforms with the signing of HB 837 by Governor Ron DeSantis. The law includes measures designed to protect small businesses from paying damages when they are not primarily at fault, limit fee multipliers for plaintiffs' lawyers, and eliminate most one-way attorney fee shifting. HB 837 also aims to support the state’s insurance market by requiring proof of improper insurer behavior under Florida’s "bad faith" law, building on reforms passed in December 2022.

A study indicates that mass tort litigation reduces tax revenues, with losses totaling $24.3 billion annually at the state level. In 2023, Florida enacted a tort reform measure that significantly reduced monthly litigation filings related to homeowner insurance lawsuits. Similar legislative actions at both state and federal levels are recommended to address the financial costs associated with excessive mass tort litigation, according to DC Journal.

Prescott eNews reports that mass tort litigation, including multidistrict litigations (MDLs), constitutes 65% of the federal caseload in 2023, up from 38% a decade ago. Third-party litigation funding has become a multi-billion-dollar industry, allowing investors to finance lawsuits in exchange for a share of settlements. This practice diverts capital from business growth and job creation. Additionally, billions are spent on legal advertising to recruit clients, further amplifying economic impacts.

A study by the American Tort Reform Association (ATRA) found that trial lawyer groups spent $1.4 billion on advertising in 2021 alone, airing over 15 million local TV ads across 210 media markets. Between 2017 and 2021, $6.8 billion was spent on more than 77 million national and local ads—a 30% increase in ad volume over five years. The study also highlights misleading legal ads that have led patients to stop critical medications after viewing them, resulting in strokes, serious injuries, and deaths.

Williams has over three decades of experience in Washington D.C., focusing on exposing government waste and advising taxpayer groups globally. He has appeared on major media outlets such as ABC World News Tonight and The New York Times and participated in government waste panels internationally.