The Texas Conservative Coalition Research Institute (TCCRI) and the James Madison Institute (JMI) today jointly published a new white paper entitled “The Litigation Lobby: Civil Justice Reform and the Future of Texas-Florida Economic Advantage.”
JMI’s Litigation Lobby report reveals the history of successful civil litigation reforms that have made Texas and Florida models for the rest of the country when it comes to economic growth, and how powerful interests are trying to roll back those gains.
This paper highlights recent trends that suggest that lawmakers in both countries should recommit themselves to the principles that helped them achieve this great success in the first place. The document concludes with recommendations to do so, including further addressing unfair damages awards and the incentives created by third-party litigation funding.
This paper documents how trial lawyers and their affiliates are working to roll back reforms in both states.
It poured tens of millions of dollars into state elections that could influence the outcome, including money aimed primarily at Republican primaries and targeted contributions to Florida sent days after a bill was introduced that weakened the reforms.
It reinstates a one-way legal fee structure that was abolished due to rising insurance premiums, such as Florida’s 2025 bill that sought to redefine “predominant political party” before it died in committee. Expanding liability through new causes of action and the elimination of existing liability protections. For example, Florida’s bill would authorize a new category of non-economic damages in medical negligence cases, with no cap. Third-party litigation financing will remain largely unregulated, with no disclosure requirements for foreign investors seeking access to privileged litigation documents, creating an industry expected to grow from about $15 billion today to up to $56 billion by 2035.
To protect these interests, this document provides recommendations to legislators in both states, including:
Reconsider laws to prevent unreasonable damages and increases in public costs, such as redefining how future lost profits and non-economic damages are calculated, and combining expanded medical negligence liability with limits on reasonable damages. Reconsider laws that address the risks of third-party litigation funding, including disclosure requirements for funding agreements and safeguards against involvement of foreign governments and sovereign wealth funds in U.S. litigation. Reconsider the reasonable timeline for the Attorney General’s exclusive jurisdiction over election crimes and create a defined window for local officials to act before states intervene.
TCCRI Executive Director Tom Aldred said of the paper, “Texas has done a great job of creating a business-friendly environment, primarily through decades of tort reform efforts. This paper uses those reforms as an example that we hope other states will follow.”
Dr. Robert McClure, President and CEO of JMI, added, “Florida’s rise as one of the nation’s premier destinations for business and capital was no accident. It was also built over decades of intentional legal reform that gave businesses and families confidence in a fair and predictable system. This paper is a reminder that these advances can be undone if we let our guard down.”
