Consumers, Texas Economy Benefit from Tort Reform

Today, Citizens for a Sound Economy (CSE) released findings from the first comprehensive study of the economic impact of tort reforms passed in Texas in 1995. The study reveals that the average Texas household has benefited $1,078 a year in reduced prices and increased personal income thanks to civil justice reform.

In order to quantify the benefits of these reforms CSE’s adjunct research fellow and respected economist, Dr. Ray Perryman, examined the economic trends that occurred after Texas passed tort reform.

Dr. Perryman found savings resulting from Texas tort reforms estimated to be $7.630 billion.

The study reveals substantially improved job prospects and a more efficient judicial system.

According to Dr. Perryman, because of the Texas legal reforms, “…dockets are less crowded, and legitimate cases are handled more expeditiously.”

“Consumers are benefiting from reforms championed by Gov. Bush and passed by the Texas Legislature,” said Texas CSE Director Peggy Venable.

The study indicates these positive impacts are likely to continue and expand over time.

But trial lawyers are using their political power and money at the state and federal levels to discredit and roll back civil justice reforms. In Texas during the 1998 election cycle, trial lawyers provided 80 percent of the Texas Democratic Party’s contributions.

“Passing legislation designed to reduce the number of frivolous lawsuits, like those passed in Texas and signed by Governor Bush, will help return our legal system to decent, honest Americans with real grievances,” said Venable.

A copy of the study is available on CSE’s web site at: