During my tenure at the Arizona legislature and my time as Speaker of the House, I saw firsthand how a thriving economy can provide opportunities for everyone, from our families to local businesses. But today, that economic landscape is increasingly threatened by a hidden crisis — one that is driving up the cost of living and making it harder for businesses to survive. It’s the rising tide of lawsuit abuse, particularly in the form of tort claims unfairly burdening Arizona’s families and businesses.

In our state, the consequences of unchecked litigation are clear. Arizonans face annual per-household tort costs of $3,449. These aren’t just abstract numbers; they are real costs impacting real people — costs associated with excessive litigation, settlements, and lawyers’ fees that find their way into nearly every corner of our economy. From health care to business operations, this system is unsustainable.

Take, for example, the growing number of civil cases filed in Arizona courts. In fiscal year 2023, 1,664,337 cases were filed, which amounts to an average of 6,657 cases every working day. While not all these cases are directly related to tort claims, there has been a 25.3% increase in civil case filings. This trend points to a deeper issue: the rise in litigiousness that threatens not just the business climate but also the quality of life for Arizonans. As National Federation of Independent Business Arizona Director Chad Heinrich and American Tort Reform Association President Tiger Joyce have pointed out, this increase in civil cases signals a growing problem that is already having a serious impact on our economy.

The costs are not just theoretical; they have tangible effects on the financial health of Arizonans. A study by the Perryman Group revealed that Arizona’s tort costs result in more than $5 billion in personal income losses and 72,259 lost jobs annually. Small businesses, which are the backbone of our economy, are particularly hard-hit by these costs. For many, simply defending against lawsuits can be a financial drain that saps resources needed for expansion, hiring and investment in their communities.

Families are feeling this burden as well. According to a recent analysis from Bankrate, the average annual auto insurance premium in Arizona is $2,744 — one of the highest rates in the country. Why are rates so high? A significant factor is the growing frequency and size of tort-related claims, which drive up the overall cost of doing business, including in industries like auto insurance. This affects Arizona drivers, who find themselves paying more just to keep their cars insured, all because of the excessive litigation costs linked to tort claims.

What’s even more concerning is how this system disproportionately affects disadvantaged individuals and low-income communities. Those who can least afford it are often stuck with the highest costs — whether in the form of higher insurance premiums or the indirect costs of reduced job opportunities. The current system encourages excessive legal action, driving up the prices of everyday services and stifling job creation, particularly in industries that rely on low-cost operations.

So, what can we do to fix this? The solution starts with reform, and the Arizona legislature is hard at work to provide these much-needed changes. SB1215 adopts measures that curb frivolous lawsuits and hold plaintiffs’ attorneys accountable for unethical practices. By creating a more transparent legal environment, it will ensure that litigation serves its rightful purpose without unfairly burdening the people who make up the backbone of our state — our families, our businesses and our workers.

At a national level, the situation is no different. Tort reform measures that limit excessive litigation and reform our legal processes are essential. Laws that make it harder for lawyers to prey on the system for personal gain will reduce costs for consumers and businesses.

We have the power to fix this. It’s time we take action to protect Arizona’s future, reduce costs for families, and ensure that businesses can continue to thrive without being strangled by the costs of endless lawsuits. We owe it to our citizens to take a stand against lawsuit abuse.

Sen. David Gowan is the Chairman of the Senate Appropriations Committee.