Lawsuit Tax Increased to $845 per Person in 2004

Lawsuits raise California’s cost of living, costing a family of four around $3,380 a year. 

San Diego  –  Reacting to a recent report showing that the cost of lawsuits amounts to a “lawsuit tax” burden of $845 for every man, woman and child in America, Citizens Against Lawsuit Abuse (CALA) said legislators need to reform California’s legal system because of the harmful effect lawsuit abuse is having on everyday Californians. 

“As we all hurry to settle up with Uncle Sam on Tax Day, it adds insult to injury to know the lawsuit tax is taking money out of our pockets, food off our tables and gasoline out of our cars, just to make personal injury lawyers richer,” said Andy Kotner, President of San Diego CALA. 

According to the study, completed by Tillinghast-Towers Perrin, each U.S. citizen pays $845 annually in his/her share of lawsuit costs, a 4% increase over the 2003 figure.  That comes out to a total of  $3,380 for a family of four. 

“This is a hidden cost that everyone pays everyday.  Lawsuits increase the cost for food, healthcare, and services that we use everyday,” said Kotner. “Just think of how many better ways a family could spend this money?” 

To answer that question, San Diego County CALA has calculated what a family of four’s $3,380 lawsuit tax could buy instead: 

◊       7-Day stay at Disney Land Resort for a family of four, including meals = $3,138.94⁸

◊       1,579 gallons of gas at $2.14/gallon² = $3,379

◊       805 gallons of Safeway Lucerne 2% Reduced Fat Milk^{3 =} $3,372

◊       868 dozen of Egglands Best Grade AA Large Eggs³ = $3,376

◊       294 packages of Huggies Baby Shape Disposable Diapers 40 Count³ = $3,378

◊       76 trips to the movie theater for a family of four, including popcorn and snacks = $3,344⁷

“In addition to the financial costs, lawsuit abuse clogs courts, delays justice for legitimate victims and threatens jobs,” says Kotner.  “Rather than pandering to this special interest, Legislators ought to act in the best interest of all Californians.”

San Diego County CALA  is a nonprofit, nonpartisan, grass roots, public education organization dedicated to serving as a watchdog over the legal system and those who would seek to abuse it for undeserved gain.  San Diego CALA strives to educate the public on the costs and consequences of lawsuit abuse.  More information is available at www.sdcala.org

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²Based on the average price listed on www.gaspricewatch.com

³Based on prices found at www.safeway.com

⁷Based on a family of four, including popcorn and snacks, at Regal Cinemas approximately $44

⁸Based on a family of four staying at Disneyland Hotel, park tickets and 15 pre-paid Disney meals