A recent report by the American Tort Reform Association (ATRA) has examined the political contributions of New Jersey's top twenty plaintiff's law firms. The findings revealed that these firms collectively donated over $2 million to politicians and political action committees (PACs). ATRA President Sherman "Tiger" Joyce expressed concerns about the potential influence of these donations on legislative and judicial decisions. The report was released on March 21.
According to the ATRA report, nearly 3,000 individual political contributions were made by the twenty plaintiff’s firms between 2017 and 2023. Malamut & Associates emerged as the top donor with contributions totaling $278,875, followed closely by Javerbaum Wurgaft at $234,446. Ten New Jersey politicians and PACs received more than $25,000 from these law firms. The NJ Association for Justice PAC, the political arm of the New Jersey Association for Justice, was the top recipient with donations totaling $412,895. Senate President Nicholas Scutari and Gov. Phil Murphy also received significant amounts - $189,400 and $106,100 respectively.
In a statement released by ATRA, Joyce voiced his concerns about the significant campaign contributions from plaintiffs’ firms potentially influencing legislative and judicial decisions. He suggested that such strategic campaign investments could sway legal outcomes. "Such close financial ties between trial lawyers and politicians raise concerns about undue influence and a lack of transparency," Joyce added.
Joyce said that these campaign contributions are contributing to an "overly litigious environment" in New Jersey which inflates costs across the board. According to ATRA's findings, this excessive tort litigation results in every New Jersey resident paying an additional "tort tax" of $1,757 each year.
The Insurance Information Institute (III) also noted that plaintiff’s attorneys are employing tactics leading to an increase in lawsuits as well as higher litigation costs and payouts. These tactics, according to III, are causing a rise in car insurance costs and exacerbating economic challenges for consumers. "There are real costs behind what we all know and see plaguing our roads with promises of settlement dollars," said III CEO Sean Kevelighan. He pointed out that as billboard attorneys accumulate fees, consumers receive less and less. "The price of insurance is the effect, not the cause of risk, and there must be more work done to curb legal system abuse," Kevelighan added.
ATRA, as described on its website, is a nationwide network of state-based legal reform groups. Established in 1986 by the American Council of Engineering Companies and later joined by the American Medical Association, ATRA operates at both state and federal levels to ensure fairness in the civil justice system.