Stop Alabama Lawsuit Abuse


Alabama small businesses deserve the Lawsuit Fairness Act of 2024 (H.B. 420/S.293.)

Lawsuit abuse is a hidden tax on small businesses in Alabama. Fixing these problems is not only about making the legal system work correctly — it is about relieving small businesses from unfair financial burdens.

In Alabama, the financial impact of lawsuit abuse leads to the loss of nearly 35,000 jobs across industries and adds up to $2.3 billion lost in personal income.

Lawsuit abuse in Alabama costs the average Alabamian $731 per year and the average family $1,016 per year.

If passed by the state legislature and signed into law, the Lawsuit Fairness Act would:

  • Impose reporting requirements on companies financing lawsuits

  • Protect employers who admit fault in direct negligence cases by limiting the claims a defendant can file for the case

  • Reduce defendants’ liability in cases involving independent contractors

  • Ensure cases are considered in the counties where accidents take place

  • Restrict advertisements from stating payouts received in lawsuits unless using the exact amount awarded from the settlement

  • Allow evidence of seatbelt use to be admissible in personal injury cases

  • Restrict medical bill expenses to verified payments or reasonably estimated amounts

  • Cap emotional and distress damages to $1 million

  • Assert that experts testifying must meet national standards to permit their testimony in court

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