Opinion: Georgia vs. New York on Torts

Real Full Piece in the Wall Street Journal

New York Attorney General Letitia James is pushing legislation to let trial lawyers sue businesses over alleged “unfair, deceptive and abusive” practices without needing to prove actual harm. A similar law in Washington, D.C., has been a boon for trial lawyers working with leftwing groups.

Biden Federal Trade Commission Chair Lina Khan and Consumer Financial Protection Bureau director Rohit Chopra this month endorsed Ms. James’s legislation. “We need stronger state laws to combat abuses that harm families and honest businesses,” Mr. Chopra said. But New York regulators can already dun businesses that mislead consumers.

Trial lawyers would file cookie-cutter lawsuits against businesses. Smaller ones that can’t afford to lawyer up would settle by paying off the attorneys. Larger companies might do the same to avoid the costs and hassle of litigation. This is how trial attorneys have made a fortune exploiting laws requiring business accommodations for people with disabilities.

Ms. James’s legislation would add to the increasing cost (and pain) of doing business in New York. Its trial lawyer-friendly laws drive up property and auto-insurance premiums. These costs get passed onto consumers. Uber says that 27% of its average trip fare in New York state excluding the city goes to insurance costs compared to 10% or less in most of the country.

Georgia has been a major beneficiary of the migration from progressive states. But soaring litigation costs and insurance premiums from its tort-friendly laws are becoming a major burden for consumers and businesses.

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