Third Party Lawsuits — A 2026 Focus

The American Property Casualty Insurance Association (APCIA) is on a mission. The insurance group’s President and CEO David Sampson said one of the association’s 2026 priorities is battling the involvement of third-parties in lawsuits.

The third-parties are often making huge profits from financing lawsuits. And most of the time we don’t know who they are and who they represent. Many “investors” are from foreign countries and pay no taxes on their “profits.”

This abuse and other reasons, Sampson said, have a huge impact on American families and businesses.

“Every household is effectively paying a hidden ‘tort tax’ of more than $5,000 annually because of unchecked litigation practices,” Sampson said. “APCIA will aggressively fight for disclosure in secretive third-party litigation funding and reforms to address misleading legal advertising that fuel frivolous lawsuits and inflate claims costs.”

The American Tort Reform Association (ATRA) agrees third-party lawsuit tort reform is an action whose time has come.

ATRA released a report at the end of 2025 naming what it calls the top judicial hellholes in this country. These are places where nuclear verdicts, legal system fraud and abuse is most prevalent in the U.S. ATRA President Tiger Joyce said these jurisdictions are driving up tort costs that are becoming almost impossible for businesses and individuals to handle.

“Personal injury lawyers push abusive lawsuits in Judicial Hellholes that drain resources, unfairly punish small businesses and reduce access to justice for everyone,” Joyce said and named the 2025-2026 Judicial Hellholes.

King County and Seattle and the Washington State Supreme Court were the PIA Western Alliance state areas named. Also named:

• Los Angeles
• New York City
• St. Louis
• Philadelphia’s Court of Common Please
• Texas
• South Carolina’s asbestos litigation
• Louisiana and Louisiana’s coastal litigation
• Cook County, Illinois
• Madison County, Illinois
• St. Clair County, Illinois
• Kentucky

Georgia, Florida and South Carolina all now have laws on the books regulating third-party participation in lawsuits. Congress is also looking at legislation to begin to control this kind of legal abuse.

Source link: Insurance Journal — https://bit.ly/49a2WnF

Source link: PropertyCasualty360.com — https://bit.ly/4qMBRwR

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