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New Report Pegs Cost of U.S. Tort System At 27 Times Federal Spending on Homeland Security

$124 Billion in Additional Health Care Spending Alone

March 27, 2007America’s out-of-control legal system imposes a staggering economic cost of over $865 billion every year according to a new scholarly study released today by the Pacific Research Institute (PRI), a free-market think tank based in San Francisco, California.  This figure is 27 times more than the federal government spends on homeland security, 30 times what the National Institutes for Health dedicate to finding cures for deadly diseases, and 13 times the amount the Department of Education spends to help educate America’s children. 


The authors of Jackpot Justice: The True Cost of America’s Tort System calculated that the nation’s tort system imposes a yearly “tort tax” of $9,827 for a family of four and raises health care spending in the U.S. by $124 billion. 


The new PRI study provides the most comprehensive examination ever of U.S. tort costs.  According to the study’s lead author, Dr. Lawrence J. McQuillan, unlike previous studies, Jackpot Justice calculates both the direct and indirect costs of America’s legal system. 

Download Report PDF

Download Summary PDF

Take Tort Quiz

Watch 9 Minute Video Interview with Dr. McQuillan

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U.S. Tort Liability Index: 2006 Report

A Study by the Pacific Research Institute ranks the health of state civil justice systems

Download and CFA Announcement

Watch Press Conference Video

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The Mission of PRI
The mission of the Pacific Research Institute (PRI) is to champion freedom, opportunity, and personal responsibility for all individuals by advancing free-market policy solutions.

Since its founding in 1979, PRI has remained steadfast to the vision of a free and civil society where individuals can achieve their full potential.



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