TORT REPORT – It seems the buzzword captivating Americans these days is “affordability”. Yet everywhere you go, prices still seem to be increasing here in California. We’re all seeking relief from the high costs of living, with no end in sight. This trend is already being compounded by a hidden cost driver known as the “tort tax”, which this year totals $3,972 for each person in the Los Angeles, Long Beach and Anaheim region. This number represents the hidden tax and the extra burden every person in this specific area pays per year to compensate for California’s overly litigious climate. Along with high costs, lawsuit abuse also leads to 427,377 lost throughout the Los Angeles, Long Beach and Anaheim region, which notably already has the highest tax rates and unemployment rates in the nation.
Every day, thousands of small business owners face lawsuits, all based on technical violations, where no one was really harmed. We might not think much of it, but we should.
Consider the case of one restaurant owner: someone who survived the economic hardships of the pandemic and California’s stagnant economy, only to face an unwarranted Americans with Disabilities Act (ADA) lawsuit because the dining room table in her restaurant was 1/16 of an inch too low. It cost this restaurant owner $11,000 to settle this case, showing just how real and costly lawsuit abuse can be for small business owners…