Stef Zielezienski, executive vice president and chief legal officer of the American Property Casualty Insurance Association (APCIA), stated that many Americans support reform addressing legal system abuses, such as the involvement of third-party funders in civil lawsuits. Zielezienski shared his statement in a March 4 press release about the results of a survey regarding legal system abuse.
"Legal system abuse is rampant and plaintiff lawyers' use of predatory advertising tactics and third party litigation funding have turned the U.S. legal system into an investment market, benefiting secret funders rather than the victim," said Zielezienski. "The survey results are clear – the majority of Americans agree state and federal lawmakers need to address these abuses of the legal system. Common-sense reforms, including full transparency and disclosure of all parties with an interest in the outcome of civil litigation, are needed to restore balance to the civil justice system."
According to the survey, which was released by APCIA and Munich Reinsurance America, 59% of respondents were unaware of the practice of third-party litigation funding (TPLF), through which investment firms and hedge funds "secretly" finance lawsuits in exchange for a percentage of the settlement or awards. Eighty-eight percent of respondents said they believe full transparency around all parties with financial stakes in lawsuits should be required. Forty-seven percent of respondents were unaware that plaintiff attorneys in civil lawsuits take significant portions of the settlements or awards.
The survey found that 65% of respondents were not aware of the "tort tax," or the extra costs imposed on consumers by excessive litigation and legal system abuse. Each American household pays a "tort tax" of approximately $3,621 every year due to these costs. Eighty-eight percent of respondents said they believe state and federal lawmakers should address legal system abuse.
According to the latest Consumer Price Index summary, the cost of car insurance has increased 20.3% over the last year.
New Jersey drivers in particular pay an average of $1,754 each year for full coverage car insurance, according to Bankrate. Drivers with poor credit pay approximately 111% more than the statewide average. Eighteen-year-old male drivers in New Jersey pay an average of $7,015 annually for full coverage car insurance.
Zielezienski has served as executive vice president and chief legal officer of APCIA since 2019, according to LinkedIn. He previously spent 27 years as senior vice president and general counsel of the American Insurance Association.
