The American Tort Reform Association (ATRA) has released its 2024–2025 Judicial Hellholes report, estimating that excessive litigation costs the U.S. economy $367.8 billion annually, which translates to approximately $1,666 per person. The report identifies the top jurisdictions contributing to these costs.
According to the American Tort Reform Foundation, the Judicial Hellholes program highlights civil courts and jurisdictions with plaintiff-friendly rules, litigation tourism, and permissive expert standards that lead to large verdicts and settlements. The 2024–2025 list ranks the Philadelphia Court of Common Pleas and the Pennsylvania Supreme Court at No. 1, followed by New York City and South Carolina’s asbestos docket. The report suggests these venues normalize “nuclear verdicts,” expand liability theories, and increase systemic costs that ultimately burden consumers and employers.
The latest analysis from ATRA frames these systemic costs in household terms: an estimated $367.8 billion in annual direct costs from excessive litigation, equating to a $1,666 per-capita “tort tax” (or $6,664 for a family of four). ATRA attributes these costs to jackpot verdicts, expansive liability, and abusive litigation tactics that filter into prices, premiums, and payrolls. It further links the burden to job losses and wage impacts, positioning reform as a consumer and competitiveness issue rather than solely a business concern.
Recent statutory changes have expanded potential exposure in personal injury and malpractice suits. Noneconomic damages in medical malpractice are set to rise from $300,000 to $875,000 over five years starting January 1, 2025. Wrongful death medical malpractice caps will increase to $1.575 million on a similar timeline. Additionally, a new general wrongful death cap of $2.125 million will begin in 2025 with biennial inflation adjustments thereafter. Reform advocates warn that these higher ceilings can pressure premiums, drive defensive practices, and strain smaller providers and employers.
The American Tort Reform Association is a nonprofit advocacy organization founded in 1986 and headquartered in Washington D.C., promoting civil justice reform including limits on liability expansion, transparency in litigation funding, and standards for expert testimony.
