Legal reform
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Op-ed by John Merrill
You’ve heard about inflation driving up costs, but there’s another less thought-of factor that contributes to this issue: lawsuit abuse.
The expenses associated with increased litigation, otherwise known as legal abuse, are causing prices to rise across Alabama. One study found that excessive litigation costs are costing Alabamians $6.3 billion in gross product every year, which translates to about $3,300 per household.
During my time as Alabama’s fifty-third secretary of state, I traveled throughout Alabama’s 67 counties and witnessed the challenges business owners face because of rising costs caused by frivolous lawsuits. That is why it is crucial for the legislature to pass legal reform in Alabama. This reform could protect consumers, lower prices for families, and allow small businesses to thrive instead of being overwhelmed by legal issues and the costs associated with that.
Legal reform is enacting legislation that increases transparency and implements sensible reform within the legal system, which will make it difficult for lawyers to inflate settlements for personal gain. It is important that Gov. Ivey and the legislature prioritize tackling lawsuit abuse this year.
Small business owners in Alabama often lack the resources and sufficient capital to engage in lengthy court battles. Just one lawsuit can lead to the closure of a local business.
Lawsuit abuse doesn’t only affect small businesses; it affects all Alabamians. We notice the effect in higher auto insurance rates and higher prices at the grocery store. Small businesses are often forced to raise their prices, passing on higher costs to their communities.
There is no doubt that when individuals and businesses intentionally create harm for individuals or businesses, they should be held to a standard that would require them to be both accountable and responsible, especially when their conduct and/or behavior is inconsistent with good or safe business practices.
However, I think that we are all in agreement that Alabama has long passed the position of being recognized as a “tort hell,” and we should never inch closer to that identifiable community again. This means that jackpot justice should never exist in Alabama again.
With that being said, I urge Alabama lawmakers to pass meaningful legal reform legislation that will lower costs for everyone and promote transparency and accountability within our legal system.
John H. Merrill served in the Alabama House of Representatives from 2010-2014 and as Alabama’s fifty-third secretary of state from 2015-2023. He can be reached at John@JohnHMerrill.com.
