By John D. Esparza, originally published by the San Antonio Express-News
We expect people to be held accountable when they cause harm, and we believe those who are injured deserve fair compensation.
We also expect a legal system that is transparent, efficient and focused on helping consumers, not one that quietly drives up costs for every Texas family.
At a time when Texans are paying more for auto insurance, homeowners’ insurance, healthcare and other everyday necessities, lawmakers should look for practical ways to improve affordability. One place to start is by addressing lawsuit abuse and increasing transparency throughout our civil justice system.
According to a study by the Institute for Legal Reform, excessive litigation costs the average Texas household an estimated $4,594 through higher consumer prices, reduced earnings and diminished economic activity. Research from the Insurance Information Institute similarly concludes that increasing litigation has imposed billions of dollars in excess costs on the auto insurance system, contributing to higher insurance premiums for consumers.
Those costs don’t magically disappear. Instead, these costs eventually show up in Texans’ monthly budgets.
Most Texans never think about the legal system until they need it. When that day comes, they deserve to know exactly how it works and exactly where their money goes.
Someone who reaches a legal settlement shouldn’t be surprised to learn that attorney fees, medical liens, litigation expenses and other deductions dramatically reduce the amount they actually receive.
Greater transparency empowers injured Texans to make informed decisions and helps ensure settlements primarily benefit the people they were intended to help.
The same principle should apply to medical care connected to litigation. Patients deserve to know when financial relationships exist between attorneys, medical providers, clinics or surgical centers that could influence treatment recommendations. Honest healthcare providers have nothing to fear from transparency, and consumers have every reason to benefit from it.
Lawmakers should also improve public access to court data. Better information about litigation trends allows policymakers to identify problems, evaluate reforms and make better decisions on behalf of Texas families.
Transparency builds confidence in our institutions and helps ensure public policy is driven by facts rather than assumptions.
Affordability also depends on a legal system that encourages efficiency instead of rewarding unnecessary delays.
When lawsuits drag on longer than necessary, everyone pays the price. Injured individuals wait longer for compensation. Courts become more congested. Businesses face greater uncertainty. Those costs are ultimately passed along to consumers through higher prices and higher insurance premiums.
Texas should continue pursuing reforms that reward the prompt resolution of legitimate claims while preserving every Texan’s right to seek justice.
Likewise, responsibility should be based on actual fault. Individuals and businesses should be held accountable for the harm they cause, but only for the harm they cause. Fair liability standards promote accountability while protecting against excessive legal exposure for those who were only minimally responsible.
In the upcoming 90th Texas legislative session, lawmakers should protect injured Texans from financial exploitation during the legal process. High-interest lawsuit loans can trap vulnerable people in cycles of debt at precisely the moment they are trying to rebuild their lives.
Strong consumer protections can prevent predatory lending practices without limiting access to legitimate financial assistance.
Finally, lawmakers should continue examining policies that ensure legal settlements primarily benefit injured Texans. Reasonable attorney fee structures and damage awards based on the actual cost of medical care — not inflated charges that were never paid — help keep the focus where it belongs: Fairly compensating those who have been harmed.
Texas families deserve a civil justice system that protects consumers as diligently as it protects their legal rights. By increasing transparency, discouraging lawsuit abuse and putting affordability first, lawmakers can strengthen our civil justice system while helping families, employers, and small businesses keep more of their hard-earned money.
John D. Esparza is president and CEO of Texas Trucking Association.
