A recent Delaware court ruling has sparked President Donald Trump’s promise to tackle the rising cost of lawsuits and legal fees on American consumers. The decision, which sided with a lone shareholder suing Elon Musk for his $56 billion compensation package, has emboldened the lawsuit lobby.
The ruling is part of a growing trend of left-wing trial lawyers exploiting the system to line their own pockets. This has led to skyrocketing insurance premiums and healthcare costs, with some states seeing an increase of over 10% annually. In fact, the Institute for Legal Reform estimates that lawsuits, legal fees, and settlements cost the average American household $4,207 annually.
However, Trump is poised to take action. Following a recent posting on X where he highlighted the rising cost of auto insurance premiums (73% higher in some areas), he vowed to cut these costs in half. The Trump administration and incoming Republican-led Congress have an opportunity to tackle the “tort tax” issue and bring down inflation.
Some states, such as Florida, are already taking steps to curb excess litigation. Governor Ron DeSantis’s comprehensive reforms have led to stabilizing or decreasing insurance rates, while West Virginia has seen a 20% decline in tort costs since 2016. These efforts serve as a model for the federal government and other states to follow.
If Trump and Republicans succeed in reining in the left-wing trial-lawyer lobby, they will help drain one of the most “murky parts” of the Washington, D.C. swamp. By tackling the rising cost of lawsuits and legal fees, families and small businesses can finally see a reduction in these exorbitant costs.
Source: https://www.city-journal.org/article/why-lawsuit-over-musk-pay-went-far