Sherman "Tiger" Joyce, president of the American Tort Reform Association (ATRA), stated that trial attorneys in California "pump significant money" into advertising campaigns to attract "more clients" and secure "larger contingency fees for themselves." Joyce made this statement in a press release dated March 19.
"Trial lawyers continue to pump significant money into these ad buys because, armed with more clients, they can boost settlements and payouts, ultimately raking in larger contingency fees for themselves," said "Tiger" Joyce. "Then, they strategically invest in candidates who may further expand liability or create new avenues to sue."
According to the press release, the ATRA recently published a report examining legal services advertising trends in California over the past four years. The study found a 66% surge in local legal services advertising expenditure in the state between 2019 and 2023, which is described as "far outpacing inflation." Over 2.3 million local legal services advertisements were broadcasted in California in 2023, costing upwards of $238.8 million.
The report further discovered that more than 75% of the legal advertisements in California in 2023 were centered on personal injury attorneys. This includes ads for motorcycle and car accident lawyers. Additionally, another 30,100 advertisements focused on product liability issues, such as medical devices and talcum powder.
The report identified Morgan & Morgan and the Onder Law Firm as the top advertisers across all mediums in California for the year 2023. Morgan & Morgan aired over 130,000 advertisements while Onder Law Firm aired more than 80,000. In terms of spending, Jacoby & Meyers Attorneys, Sweet James Attorneys, and Morgan & Morgan were identified as top spenders. Jacoby & Meyers allocated an estimated $23 million to legal services advertisements while Sweet James spent approximately $16 million and Morgan & Morgan expended $14 million.
PropertyCasualty360 asserts that excessive litigation with increasingly large settlements and payouts is contributing to escalating insurance costs. They suggest that "nuclear" or "runaway" verdicts at the expense of the insurance industry compel insurance providers to increase prices for their policyholders. PropertyCasualty360 noted that the rise in "nuclear" verdicts mirrors "the growing power of the plaintiff’s bar."
According to its website, the ATRA is a nationwide network of state-based legal reform groups. The American Council of Engineering Companies established ATRA in 1986 and was soon joined by the American Medical Association. ATRA operates at both state and federal levels to ensure fairness in the civil justice system.