The economic success stories of Texas and Florida are deeply rooted in their civil justice reforms. However, a new report from the The Texas Conservative Coalition Research Institute (TCCRI) and The James Madison Institute (JMI) warns that these gains are under threat from powerful interest groups.

The report, titled “The Litigation Lobby: Civil Justice Reform and the Future of the Texas-Florida Economic Advantage“, highlights the history of successful civil litigation reforms that have made these states models for economic growth. It also outlines the strategies employed by trial lawyers and their allies to roll back these reforms.

The Rise of the Litigation Lobby

The report documents how trial lawyers and their organizations are pouring tens of millions of dollars into state elections to influence outcomes. This includes targeted contributions in Florida sent just days after legislation to weaken reforms was filed.

One of the key strategies highlighted is the revival of one-way attorney fee structures that were previously repealed for driving up insurance costs. For instance, a 2026 Florida bill sought to redefine the “prevailing party” before it died in committee.

Another concerning trend is the expansion of liability through new causes of action and the repeal of existing damages protections. A notable example is a Florida bill that aimed to allow new categories of noneconomic damages in medical negligence cases without any accompanying caps.

The Unregulated Growth of Third-Party Litigation Financing

The report also sheds light on the largely unregulated growth of third-party litigation financing. This industry is projected to grow from roughly $15 billion today to as much as $56 billion by 2035. The lack of mandatory disclosure of foreign financiers raises concerns about their access to privileged litigation documents.

Tom Aldred Executive Director of TCCRI, emphasized the importance of these reforms, stating, “Texas has done an exceptional job creating a business-friendly environment, largely through its multi-decade tort reform efforts. This paper holds those reforms up as an example that we hope other states will follow.“

Dr. Robert McClure President & CEO of JMI, added, “Florida’s rise as one of the nation’s premier destinations for business and capital was not an accident. It was built over decades, in part, by deliberate legal reforms that gave businesses and families confidence in a fair, predictable system. This paper is a reminder that those gains can be undone if we let our guard down.“

To protect these hard-won gains, the report offers several recommendations for lawmakers in both states. These include:

  • Reconsidering legislation designed to prevent unreasonable damage awards and rising public costs, such as redefining how future lost earnings and noneconomic damages are calculated.
  • Reconsidering legislation addressing the risks of third-party litigation funding, including mandatory disclosure of funding agreements and safeguards against foreign government and sovereign wealth fund involvement in U.S. litigation.
  • Reconsidering a reasonable timeline for the Attorney General’s exclusive jurisdiction over election crimes, allowing local officials a defined window to act before the state intervenes.

The report serves as a stark reminder that the economic advantages of Texas and Florida are not guaranteed. It calls for vigilance and continued commitment to the principles that have driven their success.