Tiger Joyce, CEO of the American Tort Reform Association (ATRA), has expressed concerns that lawsuits over plastics recycling in California pose a threat to sustainable innovation. He argues that these legal actions discourage businesses from investing in new technologies and expanding operations. Joyce articulated this viewpoint in a blog post.
"The consequences of lawsuit abuse extend far beyond courtrooms," said Joyce, President and CEO. "Trial lawyers are now targeting manufacturers with claims based on junk science, threatening to undermine established medical research. Lawsuits over plastics recycling in California — another mainstay on the Judicial Hellholes list — could derail efforts to innovate sustainable solutions for our environment. When businesses face constant legal threats, they're less likely to invest in new technologies or expand operations."
According to ATRA, California is frequently labeled a "Judicial Hellhole" due to its rising economic and innovation challenges, which are exacerbated by excessive litigation. This is particularly evident in sectors such as plastics recycling. The association claims that many lawsuits are driven by trial lawyers using questionable science, thereby jeopardizing sustainability efforts and discouraging investment in new technologies. Consequently, companies are compelled to allocate resources toward legal defense rather than innovation, which hinders job growth and increases costs for consumers. The state's legal climate contributes to what ATRA describes as a nationwide "tort tax," where every resident effectively pays more due to inflated litigation costs and reduced economic opportunities.
An analysis from ATRA highlights that "the trial bar goes to California to pursue innovative new theories of liability and push the envelope with regard to expanding liability for business." The state also leads the nation in nuclear verdicts and is home to a state attorney general who is spearheading environmental litigation deemed baseless by the association. Furthermore, California's unique Lemon Law serves as a lucrative opportunity for plaintiffs’ lawyers, while "no-injury" Private Attorney General Act (PAGA) claims and Americans with Disabilities Act (ADA) accessibility lawsuits continue to burden businesses.
California's tort costs are among the highest per household in the United States, totaling $72 billion or $5,429 per household. A report by the U.S. Chamber Institute for Legal Reform underscores the financial burden imposed by the state’s tort system. Stephen Waguespack, President of ILR, emphasized the urgent need for reform to reduce excessive litigation costs. These high costs strain businesses and consumers alike, driving up prices and stifling economic growth.
The American Property Casualty Insurance Association (APCIA) and Munich Re US released a survey indicating that most Americans believe certain plaintiff lawyer tactics contribute to increased insurance and consumer goods costs. The Harris Poll surveyed over 2,000 U.S. adults and found that 69% believe third-party litigation funding (TPLF) and jury anchoring increase insurance costs, while 66% think these practices lead to higher prices for everyday items. Additionally, 77% of respondents expressed concern about foreign investors participating in TPLF potentially posing a national security threat.
Sherman "Tiger" Joyce began his career as a Legislative Assistant to U.S. Senator John C. Danforth until 1984 after graduating from Princeton University and Catholic University Law School. In 1987, after being admitted to the Virginia Bar, he became minority counsel to the Senate Committee on Commerce, Science, and Transportation where he worked on product liability legislation. Joyce has served as President of ATRA since August 1994.