Full story in Legal Newsline

By Michael Carrol

Eight in nine Californians say their cost of living has gone up over the past year, with nearly three-quarters of residents blaming lawsuit abuse as a driver of those costs for California families, a new poll concludes.

The polling numbers were the result of a survey of registered voters in the state that was conducted between May 19 and May 22 and had an error rate of plus or minus 3.1%, according to Virginia-based Protecting American Consumers Together (PACT), an advocacy group that works for fair plaintiff access to civil courts but also targets abuses by personal-injury attorneys.

The survey also found that 93% of respondents give the state Legislature poor or fair ratings for the work lawmakers are doing to hold down the cost of living. PACT is working to educate Californians about the problem of lawsuit abuse and how it drives up auto insurance premiums, prescription drug costs, groceries and overall costs for small businesses.

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Overall, a bipartisan 83% majority of California registered voters want their lawmakers in Sacramento to take action on passing lawsuit abuse reform, the survey found.

Based on the poll results, California lawmakers have strong incentives to end fraudulent and predatory behavior of trial attorneys that fuels a higher and higher cost of living, according to Zelt.

Even among survey respondents who have themselves used a personal-injury lawyer, 62% support reforms to curb lawsuit abuse, the poll found. But an initial poll question also found that California voters were largely uninformed about the issue of lawsuit abuse in the state, finding that only 11% of voters had at least some knowledge of lawsuit costs, settlements and related legal fees.

In the poll, PACT said in its statements to poll takers that the average family in the state pays $5,500 annually for goods and services due to abuses of the legal system and excessive payouts. The cost for full-coverage auto insurance in California went up nearly 50% last year, PACT said.

PACT also pointed out to survey takers that personal-injury attorneys typically take in 30% to 40% of settlements for their professional fees, as well as hidden fees and expenses. In the city of Los Angeles, the problem is so apparent that it has “blown a hole in the city’s budget,” sapping funds from traditional public services such as libraries, sidewalk maintenance and public transit, the group said.

In previous actions, PACT has supported bills in states like Georgia and Texas dealing with broad tort reform and legal measures. This legislation has included strengthening lawyer-fee rules, allowing jurors to consider factors like seatbelt non-use and actual – not inflated – medical costs, and putting transparency measures around third-party funding of lawsuits

PACT has also cited reports published from 2017 to 2021 as evidence that billboard attorneys spent $6.4 billion in California on advertising for potential clients involving personal-injury cases and other litigation.