Nancy Hoffman Vanyek, President and CEO of the Greater San Fernando Valley Chamber of Commerce, said that lawsuit abuse exacerbates California’s affordability crisis, adding an estimated $5,500 per household in costs related to rent, groceries, gas, and insurance. This statement was made in an op-ed.
“Affordability is California’s defining political challenge,” said Hoffman Vanyek. “Lawsuit abuse does not explain all of it, but it does compound it. By one estimate, the cost amounts to $5,500 per household each year. It is a systemic surcharge baked into rent, groceries, gas and insurance.”
California’s affordability crisis is driven by a severe housing supply-demand imbalance, rising construction and land costs, and persistent income inequalities. Analyses such as those by the Terner Center for Housing Innovation emphasize that while litigation-related costs are not the dominant driver, they are identified by business groups as adding a layer of pass-through burden on consumers. This information is according to CalMatters and Terner Center research.
The most recent verified estimate for California assigns an annual tort-system cost of $5,429 per household, translating statewide to roughly $72 billion in tort costs for 2022. Business advocacy literature frames this as a hidden burden on consumers and firms. This data comes from the U.S. Chamber Institute for Legal Reform’s “Tort Costs in America” report.
Comparative data show that California’s tort burden per household ($5,429) is higher than other large states such as Texas ($4,594) and Illinois ($4,281). Tort costs in the U.S. grew at an annual rate of about 7.1% between 2016 and 2022—exceeding inflation and implying increasing pressure on consumer prices. This information is based on ILR research and commentary in CLM Magazine.
Vanyek has been President & CEO of the Greater San Fernando Valley Chamber of Commerce since 1993 after joining in 1987 as communications manager; she was the first woman to lead the chamber. Her policy focus includes small-business advocacy, workforce development, and regulatory reform in the San Fernando Valley business community. According to the Los Angeles Business Journal.
The Greater San Fernando Valley Chamber of Commerce was founded in 1911 (originally as the Van Nuys Chamber) and is the region’s largest business organization. Its mission is to build community relationships, provide education for businesses, revitalize the community, and advocate for business to government; it counts a membership base representing thousands of businesses with an emphasis on advocacy regarding tax issues, workers’ compensation, workforce development, and regional economic development issues. According to the Chamber’s website.
