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New York City Remains U.S.’s 2nd Worst “Judicial Hellhole” in Annual Report

New York City Remains U.S.’s 2nd Worst “Judicial Hellhole” in Annual Report

December 11, 2025

"Small business owners are not surprised to again see New York City near the very top of this grim annual list."

FOR IMMEDIATE RELEASE

ALBANY, NY (Dec. 11, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association, issued a statement today by NFIB NY Assistant State Director Molly Dillman following the release of the American Tort Reform Foundation’s annual “Judicial Hellholes” report, which again named New York City the 2nd worst “Judicial Hellhole” in the U.S.

“Small business owners are not surprised to again see New York City near the very top of this grim annual list. There is no doubt that New Yorkers need meaningful reform to stop lawsuit abuse and help protect small businesses from predatory practices and fraudulent litigation,” said Assistant State Director Molly Dillman. “Small employers are already facing significant economic challenges and regulatory costs, and this report highlights the judicial burden New York employers have weighed on them by pro-trial litigators looking out for their own personal interests.”

Data reveals that New York residents pay an annual “tort tax” of more than $2,534.85, while more than 427,794 jobs are lost each year due to excessive tort costs. This year’s Judicial Hellholes report also notes that, “New York’s liability laws and expansive court decisions are driving the affordability crisis as shown in this recent report from the Partnership for New York City.”

Click HERE to view the full 2025-2026 Judicial Hellholes report.

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.

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