Rep. Darrell Issa, a Congressman from California's 48th District, announced his approach to federal tort reform, which he claims would establish a higher standard of transparency in the courts. He said that this is what people deserve and what the law requires. Issa made these remarks in a press release on February 7.
"Our legislation targets serious and continuing abuses in our litigation system that distort our system of justice by obscuring public detection and exploiting loopholes in the law for financial gain," said Issa, US Representative (CA-48). "Our approach will achieve a far better standard of transparency in the courts that people deserve, and our standard of law requires. We fundamentally believe that if a third-party investor is financing a lawsuit in federal court, it should be disclosed rather than hidden from the world and left absent from the facts of a case."
On February 7, Congressman Issa introduced HR 1109 – The Litigation Transparency Act of 2025. This legislation aims to enhance transparency in civil litigation by mandating the disclosure of third-party funding arrangements. According to Issa, this tort reform seeks to address concerns that undisclosed financial backers could influence legal proceedings, particularly in patent litigation, potentially distorting the justice system and stifling innovation. He said that the bill "will bring overdue reforms to a murky system that has contributed to excessive lawsuit abuse and higher costs for American consumers."
A study released by the U.S. Chamber of Commerce Institute for Legal Reform on November 20, 2024, found that U.S. tort system costs reached a record $529 billion in 2022, averaging over $4,200 per household. The study also revealed that tort costs are growing faster than inflation, with an average annual rate of 7.1 percent from 2016 to 2022. States like California, Georgia, Texas, and Illinois bear some of the highest per-household tort costs. However, West Virginia’s implementation of tort reforms has led to more than a 20% reduction in tort costs since 2016.
According to InsuranceRateReporter.com on February 18, a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics contribute significantly to rising insurance costs. The survey revealed that 69% of Americans believe these practices increase insurance premiums and that there is strong support for legal reforms.
The APCIA and Munich Re US released another survey showing most Americans believe certain plaintiff lawyer tactics contribute to rising insurance and consumer goods costs. Conducted among over 2,000 U.S. adults by The Harris Poll, it found significant concern over third-party litigation funding (TPLF) and jury anchoring.
Congressman Darrell Issa represents California’s 48th Congressional District, covering parts of San Diego and Riverside counties. He is known for advocating judicial reform and government accountability.