Pennsylvania’s legal system has again been ranked the worst in the nation by the 2024-2025 Judicial Hellholes® report from the American Tort Reform Foundation (ATRF). The designation highlights systemic issues that drive excessive litigation, deter investment, and harm the state’s economy.

In the report, the Philadelphia Court of Common Pleas and Pennsylvania Supreme Court were singled out for enabling record-setting “nuclear verdicts” and expanding liability through recent rulings. Verdicts of $10 million or more have surged, and plaintiffs are increasingly successful in obtaining multimillion-dollar awards.

Decisions by the Pennsylvania Supreme Court have exacerbated the problem, such as allowing duplicative damages in consumer protection cases and restricting manufacturers from presenting evidence of regulatory compliance in product liability lawsuits. Medical malpractice cases have also skyrocketed following a 2022 ruling permitting venue shopping, which drives up costs and limits access to care.

Lawsuit abuse costs Pennsylvania residents $1,431 annually in a “tort tax” and results in over 171,000 lost jobs each year, according to a Perryman Group study cited in the report. ATRF also projected that Pennsylvania’s economy could grow by $18.57 billion with targeted tort reforms.

Nationwide, excessive litigation costs the U.S. economy more than $330 billion annually and eliminates 4.8 million jobs. Tiger Joyce, ATRF president, called for action to address these challenges, noting that “excessive litigation obstructs economic growth, stifles innovation, and drives away businesses.”

As the Statewide Voice of Business, the PA Chamber supports legal reforms that help prevent lawsuit abuse while protecting the right of legitimate plaintiffs to seek justice. For more information about our civil justice agenda, please click here.