Editor's note: This opinion article was originally published at The Center Square.
As we mark another Illinois Lawsuit Abuse Awareness Week, I am reminded of our state's critical work ahead to combat the rampant lawsuit abuse that plagues our legal system.
Illinois continues to grapple with issues that undermine our business environment and threaten the livelihoods of hardworking citizens and the health of our increasingly fragile economy.
One alarming aspect of the lawsuit abuse problem in Illinois is the burden of the so-called "tort tax" placed on businesses and consumers. This hidden tax, in the form of higher insurance premiums and legal fees, is an enormous financial strain on small businesses like mine. The entire state suffers when we are forced to divert resources away from job creation and innovation to defend against frivolous lawsuits.
Cook County's status as a "Top 5 Judicial Hellhole" further compounds the problem. This dubious distinction sends a clear message to businesses that Illinois may not be the most hospitable place to invest and create jobs. Excessive litigation and unreasonable jury verdicts deter companies from expanding or even setting up shop in our state, leading to fewer job opportunities and limited economic growth.
Two specific issues on the horizon, the Biometric Information Privacy Act (BIPA) and House Bill 219 (signed into law by Governor Pritzker this summer), exemplify the urgency of the lawsuit abuse problem. While BIPA is intended to protect individuals' biometric data, it creates a breeding ground for predatory lawsuits. Small businesses, in particular, are vulnerable to frivolous class-action suits, driving up legal costs and threatening their existence.
HB 219, which allows punitive damages in wrongful death lawsuits, may appear well-intentioned, but it has the potential to make the situation even worse. While we empathize with families who have lost loved ones, this bill could open the floodgates to excessive and unpredictable punitive damages, making Illinois even more unattractive to businesses and potentially leading to skyrocketing insurance premiums.
The time for action is now. Illinois lawmakers must step up and pass meaningful legal reform. Doing nothing is not an option. The consequences of inaction are clear: small businesses are forced to close their doors, consumer prices are rising, and our state's economy is suffering. Illinois and its citizens cannot afford to continue further down this path.
To address these issues, we need comprehensive legal reform that curbs the abusive practices driving up litigation costs. Fair and predictable legal proceedings should be our goal. This means implementing sensible measures to reduce frivolous lawsuits, ensuring that punitive damages are reasonable and justified, and making our state's legal environment more attractive to businesses.
Illinois Lawsuit Abuse Awareness Week is a stark reminder that we have much work to rectify our state's legal climate. Addressing these issues head-on can create a brighter future for businesses, consumers, and our entire community. It's time for lawmakers to take a stand for reform because the status quo is costing us far too much, and we all pay the price.
Bob Goray owns and operates J.S. Goray, Inc., a building façade restoration and repair company in Wauconda, and is past chair of the Illinois Leadership Council for the National Federation of Independent Business.