Lawsuit Abuse Imposes 'Tort Tax' on Tampa's Economy

Excessive litigation costs drain billions from the region, hampering job growth and economic progress.

Published on Mar. 2, 2026

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A new analysis finds that lawsuit abuse is costing the Tampa-St. Petersburg-Clearwater metro area $4.9 billion in lost gross product and over 40,000 jobs annually. Across Florida, the 'tort tax' from excessive litigation amounts to $30.5 billion in lost economic output and the elimination of more than 250,000 jobs. Experts say meaningful tort reform could restore balance and predictability to the civil justice system, freeing up capital for growth rather than litigation.

Why it matters

Lawsuit abuse is quietly siphoning resources from families, businesses, and communities in the Tampa Bay region, hindering economic progress and job creation. Reforming the civil justice system is crucial for improving the area's competitiveness and affordability.

The details

The analysis found that excessive tort litigation imposes $3.3 billion in direct costs every year on the Tampa metro area. When multiplier effects are considered, those litigation costs translate into $4.9 billion in lost gross product, $3.1 billion in lost personal income, and the elimination of more than 40,000 jobs annually. Statewide, lawsuit abuse contributes to $20.3 billion in direct costs each year, leading to $30.5 billion in lost gross product and the loss of over a quarter-million jobs.

  • The analysis examined the economic impact of lawsuit abuse in the Tampa-St. Petersburg-Clearwater metro area and across Florida.

The players

Tom Gaitens

Executive Director of Florida Citizens Against Lawsuit Abuse (FL CALA).

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What they’re saying

“Economists have a name for this burden: the 'tort tax.' It represents the per-capita loss of gross product caused by excessive litigation. Unlike traditional taxes, it doesn't fund schools, roads, or public development. It simply disappears into inefficiencies and the trial bar's coffers.”

— Tom Gaitens, Executive Director of Florida Citizens Against Lawsuit Abuse (FL CALA) (tampafp.com)

What’s next

Experts say that states which have implemented meaningful tort reforms, such as reasonable limits on excessive damages and clearer legal standards, have seen tangible economic benefits, including improved judicial efficiency, stabilized legal costs, and stronger economic performance.

The takeaway

Lawsuit abuse is imposing a significant 'tort tax' on the Tampa Bay region, draining billions from the local economy and hindering job creation and economic progress. Reforming the civil justice system through targeted tort reforms could free up capital for growth and investment, boosting the area's competitiveness and affordability.