Every year, the American Tort Reform Foundation (ATRF) releases a report identifying the worst “Judicial Hellholes” across the United States. Not to be outdone, the Philadelphia Court of Common Pleas and the Pennsylvania Supreme Court have tied for the most notorious “Judicial Hellhole” in the nation.
Philadelphia is a regular contender for the ATRF list, but the last time it was first was in 2020-21. Distressingly, the explanation of the ranking suggests Pennsylvania could stay atop the list in perpetuity. “The situation is not expected to improve,” they stated, “as a recent Pennsylvania Supreme Court decision allows for duplicative damages in certain types of cases and the court is now considering a case that will impact the availability of arbitration in the Keystone State.”
It’s no wonder that Philadelphia has a reputation for judicial tourism. The 2023 study found that during the previous seven years Philly courts imposed the highest number of verdicts of one million dollars or more. In fact, 14.7% of all verdicts reached in Philadelphia totaled one million dollars or more, compared to 4.9% just five years earlier. Furthermore, plaintiffs are winning more than 50% of their cases compared to 40% five years earlier.
As though working in tandem, the Pennsylvania Supreme Court helped encourage class action lawsuits by adopting a lesser standard for admission of expert evidence, “which allows junk science to permeate state courthouses,” ATRF wrote. “In its 2020 decision in Walsh v. BASF, the Court declined to recognize the role of a trial court judge as a gatekeeper over the reliability of expert testimony. Pennsylvania is one of the last remaining states to use the weaker Frye standard when evaluating expert evidence.”
But perhaps most troubling was the August 2022 Supreme Court decision eliminating constraints on “venue shopping” in medical liability cases. Back in 2002, legislation was passed requiring plaintiffs’ lawyers to file medical liability lawsuits in the county where the harm was said to have occurred. Medical professionals were fleeing Pennsylvania at the turn of the century, a time when all cases could be moved to the most permissive courts in search of jackpot awards. The 2002 rule change by the legislature and the high court was seen as one of the most positive reforms in the commonwealth’s history. But all that was undone when the current Supreme Court interpreted the rule to say the suit can be brought anywhere the healthcare provider operates an office, any additional hospital locations in which the physician provides care, or where a physician lives. It’s no surprise that most major health care providers have a presence in Philadelphia and because of this rule change 43% of all medical malpractice cases were heard in Philadelphia courts from January 1, 2023 to April 2024.
But wait, there’s more… other issues like exploiting duplicative damages, expansions of product liability standards, climate change crusading, significant increases in asbestos related cases, and beyond.
According to ATRF’s analysis, Pennsylvania residents are essentially paying an annual “tort tax” of $1,115.00 per resident. With meaningful reform, residents and businesses could save more than $14 billion, which would support 150,595 additional jobs and generate $31 billion in economic activity.
To accomplish that, Pennsylvania must enact reforms to make the state’s legal system predictable and fair. True, permanent, and comprehensive legal reform would create jobs and stimulate investment in the commonwealth while actually reducing the expenses of state, municipal, and school district governments. Injured parties must be treated fairly, but justice doesn’t have to come at a price that threatens innovation, competition, and profitability. Pennsylvanians should not be proud to be on this list, let alone in the top spot. With common-sense reforms, Pennsylvania could crawl out of the “Judicial Hellhole” once and for all.