The state of Texas has recently been placed on the watch list by Judicial Hellholes, a designation that raises concerns regarding its civil justice system. This watch list highlights the troubling trend of escalating “nuclear verdicts” and the lawsuits spearheaded by Attorney General Ken Paxton aimed at various industries.
According to the American Tort Reform Foundation, Texas has experienced a notable decline in the balance of its courts, which is reflected in the increasing number of exorbitant verdicts and Paxton’s targeted legal actions. The state ranks third among six jurisdictions that are under scrutiny for their expansive liability and unsettling legal trends.
Historically, Texas has been regarded as a model of judicial fairness; however, signs of deterioration are becoming increasingly apparent. The report suggests that trial courts are developing a reputation for favoring plaintiffs, resulting in these so-called “nuclear verdicts.” Additionally, it points to Paxton’s recent series of lawsuits, described as part of the “Make America Healthy Again” initiative, which allegedly benefit his political allies within the plaintiffs’ bar through lucrative contracts.
Judicial Hellholes notes that from 2009 to 2023, Texas led the nation in verdicts exceeding $10 million, accumulating over $45 billion across 207 cases deemed excessive. Some of the most notable verdicts have emerged this year, including an $831 million award to a motorcyclist injured due to overserving by a bar, and a $640 million wrongful death settlement following the death of a construction worker.
The report attributes the driving forces behind these steep payouts to non-economic damages, which compensate for mental and emotional distress, as well as tactics like anchoring—where plaintiffs reference outrageously high figures to sway juries—and phantom damages, which include unpaid medical expenses added to the total award.
Judicial Hellholes argues that Paxton’s actions as attorney general are exacerbating the decline of the state’s civil justice system. The report claims that he has engaged outside counsel with personal ties to him to represent the state in lawsuits against various industries, thereby enriching his associates instead of utilizing the more than 750 attorneys available within the Texas Attorney General’s office.
In one instance, an outside attorney reportedly billed Texas taxpayers $24,570 for just one day of work. Additionally, the report highlights Paxton’s numerous lawsuits branded under the MAHA initiative, targeting companies ranging from Tylenol and baby food producers to toothpaste and candy manufacturers. It even mentions a lawsuit against the video game platform Roblox, which Paxton blames for facilitating child predator activity.
