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WV CALA Releases Results of Local Economic Impact of Excessive Tort Litigation

Charleston, WV— Following up on the statewide study last fall, West Virginia Citizens Against Lawsuit Abuse is today releasing the economic impact of excessive tort litigation in specific statistical markets as it relates to job losses and direct costs to the citizens of West Virginia. The economic impact study was performed by the Perryman Group and shows why continued legal reforms in West Virginia will benefit families, businesses, and local government.

In 2018, West Virginia lost over 3,800 jobs and almost $35 million in state and local revenue due to excessive tort litigation. These excessive acts of litigation are having a direct cost to our families and local and state government. $400 million is the direct cost in gross product to the citizens of the state of West Virginia annually due to these excessive acts of tort litigation. All industries in West Virginia are negatively affected but retail trade, business services, and health services are typically experiencing the greatest losses.

In the Charleston Metropolitan Statistical Area, over 1,200 jobs and $90 million in personal income was the economic impact from excessive tort litigation. These excess tort costs in the Charleston Metropolitan Statistical Area results in a “tort tax” of $623.04 per person annually in the area.

The Huntington-Ashland Metropolitan Statistical Area had 360 jobs and $19 million in lost personal income from excessive litigation. The excessive “tort tax” for this market was $133.60 per person from these lawsuits.

The economic impact of excessive torts in West Virginia are hurting our families, businesses, and local government. West Virginia Citizens Against Lawsuit Abuse will continue advocating for the citizens of West Virginia and create public awareness of specific acts of legislation that will benefit the state of West Virginia regarding legal reform.

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