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READ: Lawsuit Abuse Awareness Week — Protecting Arizona’s Small Businesses | NFIB

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In recognition of Lawsuit Abuse Awareness Week, NFIB Arizona & American Tort Reform Association outline reforms for a balanced civil justice system.

SUN CITY (Oct. 7, 2024) – In recognition of Lawsuit Abuse Awareness Week, NFIB State Director Chad Heinrich and American Tort Reform Association (ATRA) President Sherman ‘Tiger’ Joyce urge Arizonans to support reforms that would protect consumers and businesses alike in an op-ed for the Daily Independent.

Highlighting the economic impact of excessive tort costs for Arizonans, Heinrich and Joyce write:

Each Arizonan pays a hidden ‘tort tax’ of $1,088.57 annually due to excessive tort litigation costs. This translates to a loss of more than $2.2 billion in tax revenues across federal, state and local governments in Arizona. More alarmingly, these costs result in an annual loss of 72,259 jobs and more than $5 billion in personal income for hardworking Arizonans.

Urging Arizonans to work together to ensure that the state’s civil justice system provides a fair forum for resolving disputes, Heinrich and Joyce continue:

“As we mark Lawsuit Abuse Awareness Week, we call on all Arizonans to support legislative efforts that promote a balanced civil justice system and recognize that a fair legal environment benefits everyone — providing justice for the truly injured while protecting businesses from abusive lawsuits.”

CLICK HERE to read the full op-ed. Excerpts are below:

 

Lawsuit Abuse Awareness Week — Protecting Arizona’s Small Businesses

Daily Independent
By: Chad Heinrich & Tiger Joyce
October 7, 2024

As we observe Lawsuit Abuse Awareness Week, Oct. 7 to 11, it’s crucial to reflect on the state of Arizona’s civil justice system and its impact on our small businesses and economy. […]

The economic impact of excessive tort costs in Arizona is staggering. Each Arizonan pays a hidden “tort tax” of $1,088.57 annually due to excessive tort litigation costs. This translates to a loss of more than $2.2 billion in tax revenues across federal, state and local governments in Arizona. More alarmingly, these costs result in an annual loss of 72,259 jobs and more than $5 billion in personal income for hardworking Arizonans.

Recent data from Arizona courts paint a concerning picture. In fiscal year 2023, a total of 1,664,337 cases were filed in Arizona courts — an average of 6,657 cases every working day. […]

 

The threat of lawsuit abuse is a concern for many entrepreneurs and small business owners across Arizona, some of which may even hesitate to expand or innovate, fearing the risk of litigation. […]

 

To address these concerns, reasonable and balanced reforms are essential. Past efforts to introduce “innocent seller” legislation, which would protect retailers from liability for defects in products they merely sold, should be enacted into law. […]

As we mark Lawsuit Abuse Awareness Week, we call on all Arizonans to support legislative efforts that promote a balanced civil justice system and recognize that a fair legal environment benefits everyone — providing justice for the truly injured while protecting businesses from abusive lawsuits. […]

It’s essential to stay informed and participate actively in these decisions. By doing so, we can work together to ensure that Arizona’s civil justice system serves its intended purpose: to provide a fair forum for resolving disputes, not a lottery for opportunistic litigants and their attorneys.

Keep up with the latest on Arizona small business news at www.nfib.com/arizona or by following NFIB on X @NFIB_AZ.

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