Chris Woodward, a writer for American Family Radio, has expressed concerns about the need for California to adopt reforms to address lawsuit abuse. He warns that unless changes are made to the state’s legal system, more companies may choose not to conduct business there.
“California is long overdue for lawsuit abuse reform,” said Woodward. “As long as the current system perpetuates itself, we will see more and more companies choose not to do business in that state.”
According to a 2018 study by the American Tort Reform Association (ATRA) and Citizens Against Lawsuit Abuse (CALA), excessive tort costs in California have led to significant economic losses. The report estimates that 197,776 jobs were lost due to these costs, resulting in $11.8 billion in lost personal income for residents. The findings suggest that litigation perceived as costly or unpredictable can deter business investment and reduce economic activity.
Senate Bill 84 (SB 84), passed by the California Senate in mid-2025, seeks to address some of these issues. The bill requires plaintiffs filing construction-related accessibility lawsuits under the Americans with Disabilities Act (ADA) or California access laws to first send a detailed notice of the alleged violation to businesses. It then allows businesses with 50 or fewer employees 120 days to correct violations before facing statutory damages, attorneys’ fees, or costs. This legislation aims to protect small businesses from immediate legal penalties while maintaining access rights for people with disabilities.
Voter opinion in California reflects significant concern about lawsuit abuse and its economic impact. A survey conducted by CALA indicates that many Californians believe the high volume of lawsuits against businesses or public entities has negatively affected local economies. Residents reported witnessing local business closures and layoffs or personally knowing someone who lost work due in part to litigation costs. This sentiment suggests that business avoidance is not merely speculative but based on lived experiences.
Woodward is a verified writer for American Family Radio, covering topics such as business, finance, technology, and environmental issues. His work has also appeared in publications including Inside EVs, LifeZette, The Sports Network (TSN), Audiomack, and the American Family Association.
