Report Shows the Toll ‘Litigation Industry’ is Taking on Georgia

Date: January 04, 2024

Data shows how much the 'tort tax' costs families in Atlanta, Augusta, and Savannah

NFIB and CALA (Citizens Against Lawsuit Abuse) today released a study showing the impact excessive torts are taking on some of Georgia’s largest cities.

“Georgia’s litigation industry is taking a toll on each and every one of us,” NFIB State Director Hunter Loggins said.

A study conducted by The Perryman Group for CALA estimates that the economic impact of excessive torts in Georgia – the “tort tax” – averages $5,592 a year for a family of four compared with $4,855 the year before. It found that excessive torts resulted in the loss of 137,658 jobs statewide, up from 123,900 the previous year.

The estimates for specific metros:

  • Atlanta, $8,336 for a family of four, and a loss of 117,627 jobs
  • Augusta, $3,212 and 3,093 jobs
  • Savannah, $2,376 and 2,239 jobs

“Georgia’s legal climate has steadily worsened over the years,” Loggins said. “That’s bad news for everyone, but it puts small businesses in a particularly tough spot. Main Street businesses aren’t sitting on piles of cash, and they can’t afford teams of lawyers to flick away nuisance claims and bogus accusations.

“The cost of defending themselves against a single frivolous lawsuit could put a small business out of business,” Loggins said. “That’s why NFIB applauds Gov. Brian Kemp’s pledge to make stopping lawsuit abuse a priority in this year’s session of the General Assembly.

“We need our legislators to support efforts to create a legal landscape that treats everyone fairly.”

Related Content: Small Business News | Georgia

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