Mike Morasco, an Escondido City Councilman, has expressed concerns about California’s legal system, stating that it encourages frivolous lawsuits. According to Morasco, this results in increased costs for businesses and a hidden “tort tax” of $1,900 per resident annually. His comments were made in an op-ed published by the Times of San Diego.
“Each year, every Californian pays a ‘tort tax’ of $1,900 without even knowing it, as lawsuits skyrocket costs for businesses throughout our state,” said Morasco. “Our legal system is tilted heavily in favor of trial lawyers, and the numbers prove it. Prop. 65 ‘fishing’ expeditions have become a cottage industry in our state; Since 2012, filings have increased by 251% This year, Welch’s settled a case for $1.5 million where the average payout to class members was $4.94, while lawyers took home $394,657.”
A 2023 report from the U.S. Chamber Institute for Legal Reform estimates that California’s tort system generated $72 billion in costs in 2022, equating to $5,429 per household—more than $1,200 above the national average. The report attributes these costs partly to legal activity involving plaintiffs’ attorneys and third-party litigation funders. It also states that increased litigation activity is associated with broader economic impacts, including effects on productivity and household spending.
According to official data from the Judicial Council of California, class action lawsuits saw an 81% increase between 2000 and 2005. This trend underscores the rising number of mass legal filings often centered on minor or technical grievances. Legal observers attribute much of this surge to consumer-protection statutes and evolving interpretations of laws like California’s Unfair Competition Law. The Council’s review of litigation data suggests this growth has significantly impacted the workload of civil courts, creating bottlenecks and financial burdens on defendants.
The Perryman Group’s 2024 study on the economic consequences of excessive tort costs in California estimates that the state incurs approximately $61 billion annually in litigation-related losses. These costs include legal fees, settlements, insurance hikes, and productivity losses, amounting to a per-capita “tort tax” of $2,458. The study warns that without structural reforms, California’s competitiveness and job growth could be compromised, with residents continuing to bear increased costs for goods, services, and insurance.
Morasco is a long-time community volunteer and leader who serves as a City Councilman in Escondido, California—the city where he grew up and raised his family. Through his role on the council, he has prioritized fiscal responsibility, public safety, and economic growth. On his official Facebook page, Morasco has also voiced strong support for tort reform, citing the damaging effects of lawsuit abuse on small businesses and the broader economic health of local communities.
