Press Release: Citizens Against Lawsuit Abuse (CALA) Releases Latest Data on Tort Tax for Florida

NFIB's Bill Herrle and former Rep. Jim Kallinger joined Executive Director Tom Gaitens to unveil the data and call for movement on legislation reforming third-party litigation financing.

FOR IMMEDIATE RELEASE
March 3, 2026

Contact: Tom Gaitens
Phone: (941) 725-4450
Email: tgaitens@cala.com

Tallahassee, Fla. — Today, Tom Gaitens, Executive Director of the Florida Chapter of Citizens Against Lawsuit Abuse, released the latest data on Florida's “tort tax,” calculated in the landmark study Economic Benefits of Tort Reform: An Assessment of Excessive US Tort Costs and Potential Economic Benefits of Reform. Unfortunately, the excessive costs of the U.S. tort system have continued to rise nationally, with nearly $400 billion in annual direct costs. The “tort tax” on each person calculates out to $1,771.

The total expenditures in Florida due to excessive tort costs on business rang in at over $60 billion, with a negative impact on gross state product of $30.5 billion. The negative impact to personal income is over $19,000 per year per capita, with a destruction of 254,000 jobs.

While Gaitens spoke to the troubling data, he also praised Florida for leading the way in comprehensive reform.

“What happens when a state chooses reform instead of complacency?” said CALA's Florida Executive Director Tom Gaitens. “Florida chose reform. In 2022 and 2023, state leaders passed sweeping changes to rebalance the civil justice system. They weren't cosmetic adjustments. They were structural corrections. And the results have been measurable, preserving $4.2 billion in additional business activity and supporting more than 29,000 jobs across Florida.”

Joining Tom Gaitens for the release of the data were Bill Herrle, Florida Executive Director of NFIB, and former Rep. Jim Kallinger, Chair of the Small Business and Consumers Alliance. Both spoke to the ongoing benefits of Florida’s recent reforms and the need to remain committed to the progress made.

Gaitens also spoke to the dangers of third-party litigation financing, which could be reformed in the current legislative session if Senate Bill 1396 or House Bill 1157 were passed. The legislation would ensure more transparency in the unseemly practice of investors meddling in lawsuits, looking for return on investment, and in some cases inflicting unwarranted damage through the discovery process of proprietary business.

CALA supports the important Constitutional framework of civil lawsuits but challenges the abuse of this system, which leads to excessive lawsuits and penalties on ordinary businesses and hardworking individuals.

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