Texas Job Creators Launch the Lone Star Economic Alliance

Abusive lawsuits create significant risks for business owners in Texas

AUSTIN, Texas, Sept. 12, 2024 /PRNewswire/ -- A group of job creators from across Texas announced today the formation of the Lone Star Economic Alliance (LSEA), a coalition dedicated to preserving the Texas economy by exposing unfair litigation practices and their impact on the businesses that fuel our economy.

"The litigation environment in Texas makes small businesses feel like they have targets on their backs," said Luisa del Rosal, owner of 11820 Partners. "Any accident, no matter how minor, can lead to a lawsuit. When a fair verdict is reached, our community's employers want to do the right thing. However, fairness is no longer a factor in today's tactics. It's time for a legislative intervention."

Plaintiff's attorneys are misleading juries with exaggerated injuries and inflated medical bills, threatening to bankrupt small businesses. General liability insurance premiums are surging, with 26 consecutive quarters of increases, making insurance increasingly unaffordable for many businesses.

Some employers are even facing "nuclear verdicts" exceeding $10 million. Texas has seen more of these verdicts than any other state, costing job creators over $45 billion from 2009-2023.

"There's no way to keep up," said Adam Blanchard, co-owner of Double Diamond Transport, a full truckload logistics company in San Antonio. "When insurance costs increase at the rate they're increasing now, it limits our ability to invest in our communities and employees."

A report from the National Federation of Independent Business found that over a quarter of Texas business owners view liability insurance costs as a "critical problem," ranking it among their top challenges. This issue is having a widespread impact.

"Lawsuits in Texas are out of control, and all of us are paying the price," said Imad Sarkis, Vice President of Exxpress Mart convenience stores in Beaumont. "Small businesses are faced with high insurance premiums that threaten the viability of businesses, and the frequency of lawsuits adversely affect higher costs of everyday items such as food and medical care."

Hundreds of Texas employers are joining LSEA to protect their businesses from unfair courtroom tactics. To learn more or join the coalition, visit lonestareconomicalliance.com.

About the Lone Star Economic Alliance
The Lone Star Economic Alliance (LSEA) advocates for policies that ensure employers can continue to create jobs and safely provide the goods and services that are essential to Texas families. Formed by Texas job creators of all sizes, LSEA aims to curtail the skyrocketing cost of doing business by exposing unfair litigation practices and their impact on the jobs and businesses that fuel our economy.

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SOURCE Lone Star Economic Alliance