In December, three studies – one from the U.S. Chamber of Commerce Institute for Legal Reform and another from the American Tort Reform Foundation – painted a grim picture of New Jersey’s courts from the perspective of businesses. Taken together, the reports suggest that the state’s civil justice system imposes some of the highest costs on business in the nation.
NJBIZ Conversations is now available as a podcast, as well as a video. Subscribe to NJBIZ Conversations on Apple or Google Podcasts. Find direct links here: njbiz.podbean.com
One of the U.S. Chamber studies found that the costs and compensation paid in the U.S. tort system totaled $443 billion – or $3,621 per household – in 2020. The Garden State ranked as the fourth most expensive tort system, with an average cost of $5,059 per household. Another report warned that the size and frequency of large jury verdicts — so-called nuclear verdicts worth $10 million or more — are increasing and New Jersey ranked eighth on the list of highest nuclear verdicts in the nation. Finally, ATRF’s annual Judicial Hellhole report placed New Jersey on its Hellhole Watch List due to conditions in all three branches of government that could lead to litigation abuse.
So how bad is it out there? In this edition of NJBIZ Conversations, New Jersey Civil Justice Institute President Anthony Anastasio describes what is happening in the state’s courts, how businesses are affected and potential reforms. The NJCJI is a pro-business legal advocacy organization.