Lawsuit Abuse Is Draining City Budgets Across America, and Clovis Is Fighting Back

Lawsuit abuse is not just a problem for drivers and small businesses. It is quietly gutting the budgets of cities and public agencies across the country, stripping away resources that communities depend on for roads, parks, public safety, and emergency services. From Los Angeles to Detroit, the costs of excessive litigation are falling on taxpayers, and one California city is now taking a stand.

At the Clovis City Council meeting on August 3, 2026, staff presented a proposal to join the Coalition to Protect Community Services, a statewide partnership of public agencies advocating for reforms to address the growing burden of civil liability claims. The numbers are stark. As city staff told the council:

"A study by the California Joint Powers Insurance Authority found that insurance premiums for California public agencies increased approximately 370% from $115 million in 2016 to $541 million in 2025. Since 2019, known public entity liability exposure has grown to more than $7 billion, driven by plaintiff-friendly liability decisions and the influence of social and media narratives on public opinion."

That exposure has real consequences for residents.

"Rising litigation costs directly reduce funding available for public safety, road and infrastructure maintenance, parks and recreation, and other core city services. Participation in this coalition promotes responsible fiscal management, protects taxpayer resources, and helps preserve funding for essential municipal services."

Clovis is not alone. In Los Angeles, a Wall Street Journal editorial found that litigation abuse generated liability payouts of $240 million in one fiscal year, with city officials warning that "every dollar that goes towards a liability payout due to a lawsuit is reducing a city service."

Detroit faces the same drain, with millions diverted annually from public needs to lawsuit settlements. In California, excessive litigation costs totaled $5,429 per household in 2022, one of the highest burdens in the nation. Florida's experience shows these reforms work, with insurance costs falling and litigation declining after meaningful changes to its civil liability system.

Taxpayers deserve a government that spends their dollars on services, not on an ever-expanding litigation bill. Lawmakers across the country should follow Clovis's lead and push for reform that puts communities first.