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In the News

In the News

What happened: On April 16, in a major move, the Texas Senate passed Senate Bill 30 by a vote of 20-11. The common-sense lawsuit reform bill by Sen. Charles Schwertner will bring uniformity to Texas courtrooms by defining the noneconomic damages of pain and suffering and mental anguish, assuring that harmed persons are fully compensated on a fair and reasonable basis. 

Remind me: SB 30 was named among Lt. Gov. Dan Patrick’s top priority bills in March. Upon Senate passage of SB 30, Lt. Gov. Patrick said, “Nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins. These monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas. I thank Sen. Schwertner for his leadership on this critical issue.”

Tell me more: Critically, SB 30 would limit the evidence of medical damages that plaintiffs may submit at trial to 300% of the 2025 Medicare reimbursement rate with an adjustment for inflation. The provision is meant to prevent lawyers from “colluding with providers who over-diagnose, overbill and overtreat” victims to come up with inflated medical charges. Additionally, SB 30 makes clear that noneconomic awards cannot be used to punish defendants, make an example to others or serve a social good.

TLR Thoughts: Senate passage of SB 30 is a meaningful step toward real reform—and a win for every Texan. The bill now heads to the Texas House, where it will be carried by Rep. Greg Bonnen.

Read the full article here.

What happened: The Texas House last week passed two major priorities of the House Committee on Government Efficiency and Reform (DOGE): SB 14 and HB 12.

Remind me: Texas is the fifth most regulated state in the nation, with over 274,000 restrictions as of 2023. 

Tell me more: SB 14 creates a Regulatory Efficiency Office to streamline agency rules, requires plain language in all regulations, ensures agencies don’t have an unfair advantage in court and establishes a user-friendly public website. It passed the House 97-51, with one member present not voting on April 9, and is now on the Governor’s desk.

  • HB 12 enhances the Sunset review process by adding efficiency audits and tying regulations to agency deliverables. It passed the House 149-0 on April 8 and was referred to the Senate Business & Commerce Committee on April 14.

TLR Thoughts: Texas’s excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform (CRER). Texas is the best place for business. Overly burdensome licensing regulations shouldn’t get in the way.

What happened: A new op-ed by Erling President Mike Embertson urges the importance of SB 30 and HB 4806 to restore transparency and fairness to Texas’s legal system. 

Tell me more: Routine fender benders are turning into costly legal battles, forcing businesses and insurers into massive settlements—regardless of fault or injury. Lawsuit abuse doesn’t just impact the businesses involved—it affects every Texan. Without reform, more local employers will be forced to make difficult decisions, like laying off workers or shutting down entirely.

TLR Thoughts: SB 30 and HB 4806 offer a smart, targeted approach to protecting the future of Texas jobs, families and the state’s economic stability. When minor accidents result in outsized settlements, everyone pays the price. 

Read the full article here.

What happened: Protecting American Consumers Together (PACT) has released a new survey of likely Texas voters gauging their views on the rising cost of living and the impact of lawsuit abuse on everyday expenses. The results: a vast majority of Texans believe lawsuit abuse is a key factor driving up the price of goods and services and want their legislators to take action to fix the system. 

By the numbers:

  • 80% say the cost of living has increased in the past year.
  • 79% believe reforming the legal system is key to sustaining Texas’s economic growth.
  • 67% say lawsuit abuse drives up everyday costs.
  • 86% support medical cost transparency in lawsuits.
  • 71% support more regulation of billboard attorneys.
  • 63% support a “loser pays” system.

TLR Thoughts: Texas voters overwhelmingly support commonsense reforms to fix a broken legal system and protect consumers from hidden costs. Texas lawmakers have an opportunity this session to ensure a more transparent legal system – and to curb the unnecessary and meritless lawsuits that increase the cost of doing business in Texas – by passing SB 30 by Sen. Charles Schwertner and its companion, HB 4806 by Rep. Greg Bonnen.

Read the full press release here.

What happened: Governors and lawmakers in Georgia, South Carolina and Texas are focusing on the ways in which their states’ legal climates are significant drivers of the cost of living and doing business.

Tell me more: In Texas, lawmakers are considering legislation that aim to crack down on the ability to bring meritless lawsuits and win “nuclear verdicts:” SB 30 by Sen. Charles Schwertner and its companion, HB 4806 by Rep. Greg Bonnen, and SB 39 by Sen. Brian Birdwell and its companion, HB 4688 by Jeff Leach. 

  • On March 31, the Senate State Affairs Committee heard SB 30. Job creators from every corner of Texas converged at the Capitol to testify in support of the bill, explaining how skyrocketing insurance costs are crippling their businesses. Ultimately, higher costs are passed through to consumers of goods and services. 
  • Today, SB 39 and HB 4688 are being heard in the Senate Transportation Committee and in the House Committee on Judiciary & Civil Jurisprudence, respectively.

TLR Thoughts: Runaway lawsuits are placing Texas businesses of all sizes, across all sectors, in an extremely tenuous position. Texas job creators are being forced to raise prices, lay off employees or close their doors – ultimately harming the Texans these businesses serve every day. TLR is proud to work alongside the Lone Star Economic Alliance – a coalition of over 1,150 Texas businesses, individuals and business associations – to address the dire issue through the reforms included in these four bills.

Read the full article here.

What happened: Protecting American Consumers Together (PACT) has launched a major TV and radio ad campaign in Texas to support lawsuit abuse reform and to highlight the impact of abusive litigation on consumer costs and the state’s economy. 

Remind me: PACT is a national advocacy group that launched ads in Texas in late March to raise awareness of the consumers impacted by inflated costs, hidden fees and questionable tactics used by certain personal injury lawyers.

Tell me more: PACT’s new seven-figure, statewide ad campaign – “Strong” – highlights the need to “pass reform to end lawsuit abuse that hurts consumers, drives up everyday costs for all Texans, and fundamentally threatens the state’s strong economy.”

  • The ads follow the March 31 Senate State Affairs Committee hearing on SB 30, which exposed “the systemic approach some personal injury lawyers take to abuse their clients and drive up costs for all Texans.”

TLR Thoughts: Texas boasts the world’s eighth largest economy but is overdue for reforms that will rein in trial lawyer abuses and help restore fairness and transparency to Texas’s courts. Notably, SB 30 will help curb abusive lawsuits by: (1) encouraging doctors to treat accident victims; (2) stopping the manipulation and inflation of medical damages; and (3) educating jurors on noneconomic damages by providing clear standards and definitions.

Read the full article here.

What happened: On March 31, the Senate State Affairs Committee held a hearing on SB 30, Sen. Charles Schwertner’s lawsuit abuse reform bill. The all-day hearing, which lasted past midnight, included testimony from witness after witness who shared their personal stories and firsthand experiences of lawsuit abuse in Texas, underscoring the dire need for reform in the state.

By the numbers: According to an August 2023 LexisNexis survey of personal injury victims, 71% of respondents reported their attorney encouraged them to seek additional treatment, and 25% said their attorney was primarily responsible for setting their medical treatment. Almost half of respondents said their attorneys were involved in selecting doctors’ offices and determining specialists they saw.

In his words: “If [lawsuit abuse] does not stop, the Texas Miracle will stop.” – Lee Parsley, President and General Counsel, Texans for Lawsuit Reform 

TLR Thoughts: Members of the Lone Star Economic Alliance showed up in force at the March 31 Senate State Affairs Committee hearing to support SB 30, which would restore transparency and fairness to Texas’s courts. Notably, SB 30 includes reforms that will (1) encourage doctors to treat accident victims; (2) stop the manipulation and inflation of medical damages; and (3) educate jurors on noneconomic damages by providing clear standards and definitions.

Read the full article here.

What happened: Texas has a chance to complete the triple crown of its pro-business legal environment. That’s why the Texas Legislature is advancing SB 29 by Sen. Bryan Hughes – legislation that will “ensure Texas businesses are protected from frivolous attacks by profit-seeking activists” and that will “guarantee company leaders can make decisions based on the best interests of the company’s stakeholders rather than outsiders.”

Tell me more: SB 29 codifies a long-standing concept in corporate common law called the “business judgment rule,” ensuring corporate directors cannot be sued for decisions made in good faith, even if the outcome is unfavorable. It also establishes stricter requirements for shareholder lawsuits, preventing opportunistic legal attacks that could disrupt businesses.

  • The bill has passed out of the Senate State Affairs Committee and is headed to the Senate floor.

Why it matters: A stable and predictable legal framework attracts businesses, fuels economic and job growth and enhances Texas as a state of opportunity.

  • By codifying corporate protections against needless and disruptive litigation, SB 29 would ensure that companies can focus on innovation and expansion rather than legal battles – helping establish Texas the leading state for incorporations.

TLR Thoughts: TLR has long advocated for policies that protect businesses from abusive litigation while ensuring fairness in the legal system. TLR-backed SB 29 – and its House companion HB 15 by Rep. Morgan Meyer – are a crucial step in strengthening Texas’ pro-business legal environment, giving companies the certainty they need to grow and create jobs.

Read the full article here.

What happened: On March 21, in a critical move, Georgia lawmakers signed off on Senate Bill (SB) 68 in Georgia Gov. Brian Kemp’s (R) comprehensive tort reform package. The bill now heads to Gov. Kemp’s desk to be signed into law.

Tell me more: SB 68 aims to curb lawsuit abuse while protecting families, small businesses and Georgia’s economic competitiveness. 

  • On February 21, the Georgia State Senate passed SB 68 with a bipartisan vote. The amended bill, which passed the Georgia State House of Representatives on a 91-82 vote on March 20, maintains its core provision addressing “phantom damages” – awards based on inflated medical bill amounts that were never paid. 

TLR Thoughts: Much like Georgia, TLR is advocating this session for meaningful reforms that will put a stop to the abusive lawsuits threatening Texas businesses and endangering the Texas economy. The Lone Star Economic Alliance, of which TLR is a founding member, is urging Texas lawmakers to pass SB 30/HB 4806 – vital legislation that will restore transparency and fairness to Texas’s courts. Notably, SB 30/HB 4806 includes reforms that will (1) encourage doctors to treat accident victims; (2) stop the manipulation and inflation of medical damages; and (3) educate jurors on noneconomic damages by providing clear standards and definitions. SB 30 will be heard by the Senate State Affairs Committee next Monday, March 31, 2025.

Read the full press release here.

What happened: The American Tort Reform Association (ATRA) has released a new report exposing the growing misuse of public nuisance litigation, which is now being weaponized and targeted to entire industries over complex societal issues.

Tell me more: The report details how plaintiffs’ lawyers use public nuisance claims to bypass traditional liability principles and hold businesses accountable for “far-reaching societal problems, regardless of fault or causation.”

  • Critically, the report warns that abusive public nuisance lawsuits that target lawful activities like producing oil and gas and plastic packaging could lead to unprincipled liability, higher consumer costs, and harm to American businesses’ competitiveness.

TLR Thoughts: Attorneys representing government entities have resurrected the ancient “public nuisance doctrine” as a mechanism to regulate society through litigation. Courts shouldn’t be engaged in shaping public policy—only in evaluating the specifics of each case and applying the law accordingly. TLR is advocating this session for narrow legislation (SB 779) that will protect the Legislature’s authority to set public policy, while preserving nuisance lawsuits for use when appropriate.

Read the full article here.

What happened: A new study prepared for Citizens Against Lawsuit Abuse (CALA) by Waco-based economic research firm The Perryman Group found that Texans pay an average of $1,725 more for goods and services every year as the cost of lawsuits and massive court awards are passed on to consumers. 

Tell me more: This $1,725 lawsuit tax—which drives up the cost of everything Texans buy, from groceries to housing to insurance—is higher than the national annual average lawsuit tax of $1,666 per person.

  • Between 2009 and 2023, Texas led the nation in the number of “nuclear verdicts” (i.e., jury verdicts of $10 million or more). According to the CALA study, a total of 207 nuclear verdicts were awarded in Texas during that time, totaling more than $45 billion—costs that are often ultimately borne by consumers throughout the state.

By the numbers: The lawsuit tax is even higher in specific regions of the state:

  • $2,746 per Texan in Austin-Round Rock-Georgetown;
  • $2,483 per Texan in Dallas-Fort Worth-Arlington; and
  • $2,373 per Texan in Houston-The Woodlands-Sugar Land.

In his own words: “We must preserve access to courts for legitimate lawsuits, but today’s get-rich-quick lawsuit environment threatens access and drives up costs for everyone.” – Bobby Jenkins, chairman of Citizens Against Lawsuit Abuse of Central Texas

TLR Thoughts: The study comes as the Texas Legislature is considering legislation (SB 30/HB 4806) that would address unreasonable court awards known as “nuclear verdicts,” which are driving up costs for businesses and consumers and impeding economic growth in the state. Notably, the legislation has been named a priority bill by Lt. Governor Dan Patrick. SB 30 will be heard by the Senate State Affairs Committee next Monday, March 31, 2025.

Read the full article here.

What happened: Nasdaq has announced it will open its first regional headquarters in Dallas—the latest push by a New York institution into Texas. 

Remind me: Nasdaq was founded in 1971 and established stature during the tech boom of the late 1990s and early 2000s. Though Silicon Valley is a thriving pipeline for its listing business, the exchange never opened a headquarters in California. Nasdaq has more than 200 listed companies based in Texas, where it has had a physical presence since 2013The regional office will expand the company’s footprint in the Lone Star State.

Tell me more: Making a big investment in Texas is becoming a trend among financial institutions. In February, the New York Stock Exchange (NYSE) revealed its plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas—a fully electronic equities exchange. Additionally, the Texas Stock Exchange (TXSE) has filed paperwork in the hopes of gaining regulatory approval to start trading and listing companies in 2026.

TLR Thoughts: Texas continues to pose a threat to New York’s financial dominance, attracting top companies and technology giants to the state. The Texas Business Court—a strong alternative to the Delaware Court of Chancery System—is the main draw. This session, TLR is advocating for legislation that will both enhance Texas’s existing corporate governance laws and expand the Texas Business Court’s jurisdiction to include more kinds of commercial disputes, so that Texas remains the premier state for corporate operations.

Read the full article here.