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Sunday, December 22, 2024

American Tort Reform Association president: California trial lawyers invest in advertising to ‘boost settlements and payouts’

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John Morgan (left) and Matt Morgan (right) of Morgan & Morgan | forthepeople.com

John Morgan (left) and Matt Morgan (right) of Morgan & Morgan | forthepeople.com

Sherman "Tiger" Joyce, president of the American Tort Reform Association (ATRA), stated that trial attorneys in California invest substantial funds into advertising campaigns to attract more clients and secure larger contingency fees for themselves. Joyce made this assertion in a press release dated March 19.

"Trial lawyers continue to pump significant money into these ad buys because, armed with more clients, they can boost settlements and payouts, ultimately raking in larger contingency fees for themselves," said "Tiger" Joyce. "Then, they strategically invest in candidates who may further expand liability or create new avenues to sue."

According to the press release, ATRA has released a new report analyzing legal services advertising trends in California over the last four years. The report revealed a 66% increase in local legal services advertising spending in the state between 2019 and 2023, significantly outpacing inflation. More than 2.3 million local legal services advertisements were aired in California in 2023, costing upwards of $238.8 million.

The report also found that over 75% of the legal advertisements in California in 2023 focused on personal injury attorneys, including advertisements for motorcycle and car accidents lawyers. An additional 30,100 advertisements focused on product liability, including those for medical devices and talcum powder.

According to the report, Morgan & Morgan and the Onder Law Firm were the top advertisers across all mediums in California in 2023. Morgan & Morgan aired more than 130,000 advertisements while Onder Law Firm aired over 80,000. In terms of spending, Jacoby & Meyers Attorneys, Sweet James Attorneys, and Morgan & Morgan were the top law firm advertisers. Jacoby & Meyers reportedly spent an estimated $23 million on legal services advertisements while Sweet James spent an estimated $16 million and Morgan & Morgan spent $14 million.

PropertyCasualty360 suggests that excessive litigation with increasingly large settlements and payouts is contributing to rising insurance costs. "Nuclear" or "runaway" verdicts at the expense of the insurance industry compel insurance providers to raise prices for their policyholders. PropertyCasualty360 notes that this increase reflects "the growing power of the plaintiff’s bar."

According to its website, ATRA is a nationwide network of state-based legal reform groups. The American Council of Engineering Companies established ATRA in 1986 and was soon joined by the American Medical Association. ATRA operates at both state and federal levels to ensure fairness in the civil justice system.