Fast Facts
Tort costs grew by 5.4% in 2003 reaching a record $246 billion; that’s $845 per person, or $35 per person more than 2002. (KRC: Tillinghast, "... 2004 Update", p. 2)
“Even under conservative estimates, the American tort system is the most expensive in the world, and presents costs greater than twice that of the average cost of liability systems in other industrialized nations.” (KRC: Council of Economic Advisors, “Who Pays For….”, p. 1-2)
“While it is impossible to accurately predict future increases in tort costs, it does seem reasonable to assume that without sweeping structural changes to the U.S. tort system, annual increases will be in the 5% to 8% range for the next several years. At this rate of increase, tort costs could approach $1,000 per U.S. citizen by 2006 – representing a new quadruple-digit benchmark.” (KRC: Tillinghast, "... 2004 Update", p. 2)
We spend more than twice as much on our tort system in America as we do on new cars. (AJP, Fast Facts on the Litigation Lottery, 2005, p. 1)
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In 2003 [most recent data available], the direct costs of the U.S. tort system – losses, defense costs, administrative expenses – added up to $246 billion or 2.23% of GDP. (KRC: Tillinghast, "... 2004Update", p. 2, 5)
“Incredibly, what Americans spend on lawsuits could pay for all the following Government programs combined: “Education, training, and employment; general science, space and technology; conservation and land management; pollution control and abatement; disaster relief and insurance; community development; Federal law enforcement and administration of justice; and unemployment compensation.” (KRC: Hantler, “Seven Myths…” p. 6, quoting Council of Economic Advisers, Who Pays For Tort Liability Claims? An Economic Analysis of The U.S. Tort Liability System April, 2002, note 31, p. 17.)
