As a high-net-worth individual, your wealth is at risk. Americans file lawsuits for seemingly endless reasons. Understanding the prevalence of lawsuits in modern America can help you put this concern into perspective so you can begin protecting your wealth today.
Many incidents could land you in hot water, from traffic mishaps to typos in your corporation’s paperwork. If you end up on the receiving end of a lawsuit, you need an asset protection plan in place to safeguard your wealth from litigation.
The Prevalence of Lawsuits in Modern America
We must examine the hard facts to analyze the frequency of lawsuits in contemporary America. According to the Institute for the Advancement of the American Legal System, over 100 million lawsuits are filed in state trial courts annually, and over 400,000 cases federally.
Lawsuit prevalence varies greatly between industries, locations, and demographics. For example, medical malpractice is one of the most common types of lawsuits in America, so healthcare workers must protect their assets with medical malpractice insurance. Understanding the high incidence of lawsuits in modern America can help you see the value of protecting your assets in advance.
Which state has the highest number of lawsuits?
One state stands out from the rest when exploring the proliferation of lawsuits in today’s society. To measure this data, Tribeca Lawsuit Loans considered the number of cases filed from March 2022 to March 2023 compared to each state’s population. Based on this measure, Florida has the highest number of lawsuits, averaging 276 cases per 100,000 residents, or 59,400 total filings during the designated period.
In comparison, New York has a similar population to Florida but averaged only 117 lawsuits per 100,000 residents during the same period. Florida’s excessive lawsuits amount to $40 billion in economic impact. According to Governor Ron DeSantis, lawsuit abuse has cost Floridian households more than $5,000 annually from increased costs of goods.
Beyond Florida, quite a few other states are experiencing excessive lawsuits. According to the same research from Tribeca Lawsuit Loans, Louisiana came in just after Florida, with 265 cases filed per 100,000 residents. Other notable mentions included Delaware, New York, Illinois, New Jersey, South Carolina, Arkansas, West Virginia, and Nevada.
Most Common Types of Lawsuits
Understanding the prevalence of lawsuits in modern America involves critically assessing the types of legal actions people take and why. Evaluating lawsuits in terms of type and prevalence can help you better understand your risks based on your work and day-to-day life. The most common types of lawsuits include the following:
Personal Injury
Personal injury covers all types of claims resulting from harm to a person’s physical body, emotional well-being, mental state, or reputation. Many sub-categories of personal injury lawsuits exist, like slip-and-fall claims or medical malpractice lawsuits. All these categories have one thing in common: Someone gets hurt because another party acts negligently, leading the victim to sue that party in pursuit of fair compensation.
Whether you own a business, drive a car, or own a house, you’re at daily risk of a personal injury lawsuit. Here is a list of the most common types of personal injury claims:
- Medical malpractice
- Slip-and-fall accidents
- Workplace accidents
- Wrongful deaths
- Animal attacks
- Premises liability
- Motor vehicle, bicycle, or pedestrian accidents
- Construction site accidents
- Nursing home abuse
- Assault
- Product liability
- And more
Business Litigation
Business litigation involves any non-criminal dispute relating to a business’s transactions. Think of business litigation as the financial end of the lawsuit spectrum, while personal injury cases relate to individual harm. Many scenarios can result in business litigation, such as the following:
- Breaches of contract
- Fraud disputes
- Breaches of fiduciary duty
- Non-compete issues
- Intellectual property disputes
- Insurance gaps or coverage complications
Understanding the prevalence of lawsuits in modern America, specifically the risks relating to your industry, can help you gain more perspective. By not keeping your finger on the pulse of legality in this country, you could be putting yourself — and your assets — on the line. A seasoned legal professional can help you avoid this mistake.
Consumer Protection Lawsuits
Consumer protection laws allow consumers to sue companies for false advertising, dangerous or defective products, fraud, and more. With the prevalence of consumer protection lawsuits, major corporations can’t take advantage of shoppers by preying on their lack of industry knowledge.
Factors Contributing to the Increasing Prevalence of Lawsuits in Modern America
The increasing prevalence of lawsuits in modern America isn’t without reason. Here are the top factors contributing to the rising number of civil cases.
Litigious Culture
Many see America as a litigious culture, meaning US citizens are more inclined to turn to the legal system for answers when compared to other societies. Americans have a much higher incentive to go to trial than citizens of other nations, like the UK, because of economic factors in their favor, which we’ll cover below.
Accessibility of Legal System
US citizens have legal rights to an accessible court system. Anyone can file a lawsuit in civil court by following simple steps.
Consumer Protection Laws
Consumer protection laws protect shoppers from false advertising, unsafe products, and fraud. Because of these laws, consumers often have easier access when filing lawsuits against major corporations.
Economic Factors
In the American legal system, each party must pay its legal fees, whereas some other nations enact policies that require the losing party to assume a large portion of the winner’s legal fees. Because of the potential to have even higher expenditures when going to trial, people are often less inclined to file lawsuits in countries following such models.
Some attorneys in the United States also advertise payments on a contingency basis, meaning you only have to pay legal fees if the attorney wins the case. Numerous economic factors in modern America make it amenable to filing a lawsuit, hence the increased prevalence.
Addressing the Rise in Lawsuits
With this rise in lawsuits comes the requirement to adapt the system. Below are some current ways the US addresses the surge in civil cases.
Legal System Reforms for Efficiency
More cases inherently mean a backlog in the judicial process, so many states are adopting streamlined tech solutions to increase how everything operates. Such solutions include digitizing paperwork, improving case management, automating repetitive tasks, and leveraging AI.
Mediation and Arbitration as Alternatives to Litigation
In many scenarios, lawsuits do not require litigation. Some cases are resolved through mediation and arbitration to avoid lengthy court procedures.
Public Awareness Campaigns
Public awareness campaigns can help minimize numerous problems, potentially preventing lawsuits entirely. For example, medical malpractice public awareness campaigns can help spread awareness to providers who may need to increase their insurance coverage so that litigation does not become necessary.
How To Protect Yourself From Lawsuits
These insights into the prevalence of lawsuits in contemporary America make one thing clear: You must protect your assets. Meet with an asset protection attorney to discuss your options. At Blake Harris Law, we offer premier asset protection through offshore asset protection trusts.
After understanding the prevalence of lawsuits in modern America, you may feel inclined to rethink your asset protection strategy. Contact Blake Harris Law to speak with an asset protection attorney about safeguarding your wealth from a lawsuit.
