WASHINGTON – Costs associated with the U.S. tort lawsuit system reached an estimated $655.6 billion in 2025, equivalent to more than $4,900 per American household, according to a study by the U.S. Chamber of Commerce Institute for Legal Reform.
The business group’s “Tort Costs in America” study estimated those costs amounted to 2.12% of the nation’s gross domestic product. Costs grew an average of 7.8% annually since 2019, outpacing economic growth and rising at twice the rate of inflation, according to ILR study which was released November 5.
The ILR, which advocates changes to the civil justice system, said the costs ultimately affect consumers through insurance premiums and the prices of health care, goods and services.
Waguespack
“Americans are already struggling with the cost of insurance, health care, housing, and everyday necessities,” ILR President Stephen Waguespack said. “Now we know the tort lawsuit system is imposing another hidden cost of more than $4,900 per household.”
Delaware had the highest per-household amount, at $7,814, followed by New York at $7,650, New Jersey at $6,709, Nevada at $6,448 and Georgia at $6,247. West Virginia had the lowest estimate, at $2,569 per household.
Total dollar amounts produced a different ranking. California had the largest estimated total, about $81.9 billion, followed by Texas at $62.8 billion and New York at $59.9 billion. California’s per-household estimate was $5,935, while Texas’ was $5,481.
Waguespack argued that the legal system too often rewards excessive and frivolous litigation.
The ILR study pointed to Florida as an example of a state where changes to civil justice laws may be affecting costs. Following the state’s 2023 reforms, tort costs declined from 3.35% to 3.11% of Florida’s economy, according to the release. Florida also moved down four places in the ranking of states by tort costs per household.
That 3.11% still put Florida with the highest tort costs as a share of its economy. Its estimated total was $56.2 billion, or $6,149 per household.
The estimates include both costs and compensation paid through the tort system, not just legal expenses. The fourth edition of “Tort Costs in America” was prepared by The Brattle Group and published by ILR.
