ATRA Puts New Jersey on ‘Heat Watch’ in New Legislative Report

ATRA Monitors Liability-Expanding Agenda, Names State to ‘Heat Watch’

JULY 31, 2024 (WASHINGTON) – Today, the American Tort Reform Association placed New Jersey on its “Heat Watch” list in the new Legislative HeatCheck, citing the potential passage of liability-expanding legislation that could further deteriorate the state’s poor legal climate.

“While New Jersey lawmakers are still in session, we’re seeing several concerning pieces of legislation advance that would significantly expand liability if enacted into law,” Tiger Joyce, ATRA president said.

One such bill, ATRA notes, is the proposed “Green Amendment,” sponsored by Democratic Sens. Linda Greenstein and Andrew Zwicker. Senate Concurrent Resolution 43 would enshrine a vague “right to a clean and healthy environment” in the state constitution. If enacted, this would enable private litigants to circumvent the regulatory process by filing lawsuits against the state under the New Jersey Civil Rights Act to enforce the new environmental right.

“The Green Amendment is a litigation vehicle masquerading as an environmental protection measure,” Joyce said. “Its potential to generate rampant litigation by allowing claims over any perceived lack of environmental regulation is deeply troubling for New Jersey businesses.”

Excessive tort costs in New Jersey impose a staggering $1,757 “tort tax” on every state resident annually while sapping 149,241 jobs statewide.

“With a legislature dominated by allies of the personal injury bar, New Jersey is poised to continue its litigious trajectory unless leaders prioritize rebalancing the state’s civil justice system,” Joyce said.

New Jersey’s Democratic-controlled legislature includes Senate President Nicholas Scutari, a personal injury lawyer who actively works against civil justice reform, ATRA notes. With substantial campaign contributions from plaintiffs’ attorneys to both parties, advocates face an uphill battle against liability expansions.

One bill that could improve the state’s civil justice environment is the “Consumer Legal Funding Act,” which seeks to regulate lawsuit lending. Bill A1931 is sponsored by Democratic Assemblywoman Ellen J. Park and its Senate companion, Bill S1475 is sponsored by Democratic Senator John McKeon. Unfortunately, this legislation has not moved during the current legislative session, and observers expect resistance by the trial bar to important provisions in the bill.

New Jersey is a mainstay on the American Tort Reform Foundation’s annual “Judicial Hellholes®” report and was included on its 2023-2024 “Watch List” in large part due to the trial bar’s sway over lawmakers last year.

ATRA’s Legislative HeatCheck report evaluates a select group of states’ progress — or lack thereof — in enacting meaningful tort reform measures during their most recent legislative sessions.

New Jersey’s legislature is named to the “Heat Watch” list alongside California’s and Michigan’s statehouses. The full Legislative HeatCheck report is available at heatcheck.atra.org.

###