The American Tort Reform Association (ATRA) announced that New York’s tort costs average $2,535 per person annually, the third highest in the country, contributing to job and income losses for working families.
According to ATRA, a response was issued following a statement by the New York State Trial Lawyers Association. The response included an infographic highlighting New York’s tort tax and its implications. The association claims that excessive tort costs result in 427,794 jobs lost annually when considering dynamic effects and $31.66 billion in personal income losses. A link to the 2025-2026 Judicial Hellholes report on New York City was provided, detailing issues such as fraud and expansive liability.
New York City ranks second in the 2025-2026 Judicial Hellholes report due to alleged fraud in areas like no-fault insurance and construction under the Scaffold Law, which reportedly adds 10 percent to state construction costs. The report indicates that no-fault personal injury protection insurance costs in New York are significantly higher than those in neighboring states. In 2024, it is noted that New York City spent $2 billion of taxpayer funds on settlements.
The U.S. Chamber Institute for Legal Reform study reveals that U.S. tort system costs reached $529 billion in 2022, amounting to over $4,200 per household. These expenses represent about 2 percent of the gross domestic product and have grown at an average annual rate of 7.1 percent from 2016 to 2022, surpassing inflation rates.
The American Tort Reform Association advocates for reforms within the civil justice system through education and legislation aimed at curbing excessive litigation. It publishes annual Judicial Hellholes reports identifying jurisdictions with imbalanced legal practices impacting economic growth and supports policies promoting fair court outcomes for businesses and individuals.