The Supreme Court Takes on the Tort Tax
Summary
The U.S. Supreme Court issued rulings that limit certain types of civil lawsuits, emphasizing that courts should only apply the law. One key case, Monsanto v. Durnell, decided that companies cannot be held liable under state law for not adding warnings to products when federal law already approves their labels.Key Facts
- The Supreme Court limited legal claims that conflict with federal regulations.
- Mass tort lawsuits, which involve many similar cases against one company, make court cases and costs increase.
- High tort costs add about $2,437 per year to the average U.S. household’s expenses through higher prices.
- Mass tort cases represent about 70% of pending federal civil cases.
- Many mass tort claims lack strong evidence but still raise costs and use court time.
- The Monsanto case involved Bayer’s Roundup weedkiller and cancer warnings.
- The Environmental Protection Agency approved Roundup’s label without a cancer warning.
- Bayer has offered $7.25 billion to settle many current and future claims over Roundup.
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