Dave Embertson, president of Erling, highlighted in an op-ed published on April 8 how a minor traffic accident led to a $600,000 settlement. He said that this case exemplifies how lawsuit abuse is driving up insurance costs and impacting Texas businesses and consumers.
"Insurance companies are forced to settle today because they fear juries handing out multi-million-dollar verdicts," said Embertson. "Our insurance company settled the case for a staggering $500,000, with the total payout reaching nearly $600,000 for a low-speed tap at a traffic light. These lawsuits skyrocket insurance premiums, even for those who have never been sued, and additionally drive up the cost of goods and services. Texans deserve a fair legal system that protects real victims."
According to the Lone Star Economic Alliance, a minor traffic incident involving a company vehicle in Texas in April 2022 initially resulted in a $3,000 settlement for vehicle damage. Months later, a related bodily injury claim led to an insurance payout of nearly $600,000, despite no injuries being reported at the scene.
Texans Against Lawsuit Abuse reported that excessive litigation costs Texas households an average of $1,725 per year in higher prices for goods and services. This so-called "lawsuit tax" exceeds the national average, reflecting the broader economic impact of the state’s legal environment. The estimate is based on research evaluating how litigation costs are passed on to consumers.
The U.S. Chamber Institute for Legal Reform reported that in 2023, lawsuit costs for Texas households totaled $14.5 billion, averaging $1,539 per household. These costs include higher insurance premiums and business expenses passed on to consumers. The study also found that Texas’s civil litigation environment ranked among the most expensive in the nation.
Embertson is president of Erling, a company that provides equipment, installation, and repair services for vehicle fueling systems, primarily serving convenience stores and related businesses across Texas. He earned a degree from Michigan State University in 1978. With more than two decades of leadership at Erling, Embertson has overseen the company’s expansion statewide, emphasizing safety and operational efficiency.