The Cost of Lawsuits

The Cost of Lawsuits

From The Heritage Foundation’s Blog, The Insider:

According to the Pacific Research Institute’s new study, Jackpot Justice, the annual social cost of the U.S. tort system is $737.4 billion, which

is equivalent to an eight-percent tax on consumption, a 13-percent tax on wages, the combined annual output of all six New England states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont), or the total annual sales of the U.S. restaurant industry. The annual price tag, or “tort tax,” for a family of four in terms of costs and forgone benefits is $9,827.

That’s what we pay to hold negligent behavior accountable through litigation. We pay that cost through higher prices, lower wages, and lower returns on our investments. Are we getting our money’s worth?

Comment: I read through the study fairly quickly looking for mention of Ohio, which I could not find. However, it is worth your time to check and read fairly easy. Hopefully Ohio’s legislators will examine cost of lawsuits on our economy.