Dave Embertson, president of Erling, has expressed concerns over Texas' legal system, which he claims forces insurers into large settlements. This situation, according to Embertson, results in increased consumer prices and poses a threat to small businesses. He argues that tort reform is urgently needed.
"Here's the problem: insurance companies are forced to settle today because they fear juries handing out multi-million-dollar verdicts. Lawyers know this. They count on it," said Embertson. "Our insurance company settled the case for a staggering $500,000, with the total payout reaching nearly $600,000 for a low-speed tap at a traffic light. The real victim in all of this is you. If you live or work in Texas, you pay thousands of dollars yearly to finance this madness. These lawsuits skyrocket insurance premiums, even for those who have never been sued, and additionally drive up the cost of goods and services. Texas's legal system needs reform before more businesses are forced to pass costs onto customers, lay off employees, or shut down entirely... I'm hopeful lawmakers will pass Senate Bill 30 and House Bill 4806. Texans deserve a fair legal system that protects real victims."
In a blog post for the Lone Star Economic Alliance, Embertson detailed an incident where his company's insurer paid nearly $600,000 after a minor traffic accident due to fears of a "nuclear verdict." He attributes such outcomes to a legal environment that pressures insurers to settle in order to avoid unpredictable jury awards. This trend, he says, has led to significant increases in insurance costs and jeopardizes job security and price stability within companies like his own. Embertson supports legislative measures such as Senate Bill 30 and House Bill 4806 as essential steps toward restoring fairness and reducing legal abuses in Texas.
According to a study by the U.S. Chamber Institute for Legal Reform, Texas ranks among the top five states for nuclear verdicts. Between 2013 and 2022, there were 130 personal injury and wrongful death cases resulting in $16 billion in awards. The study notes that "anchoring" tactics—where attorneys propose high-dollar damage amounts—have significantly inflated jury awards. An example cited involved a $39 million verdict in an auto accident case; this was later overturned by the Texas Supreme Court due to improper tactics. Such excessive awards are said to contribute to higher insurance premiums and consumer costs while undermining fairness in the legal system.
A report from the American Tort Reform Association (ATRA) indicates that Texas is a significant center for legal services advertising. Dallas and Houston rank among the top ten U.S. media markets for spending on these ads in 2024. Dallas saw approximately $69.8 million spent on over 622,000 ads, while Houston accounted for more than $56.6 million spent on over 411,000 ads. These figures are part of a broader national increase in trial lawyer advertising expenditures, which reached $2.5 billion across the U.S. last year.
The American Property Casualty Insurance Association (APCIA) and Munich Re US conducted a survey revealing that most Americans believe certain plaintiff lawyer tactics contribute to rising insurance and consumer goods costs. The Harris Poll found that 69% of respondents think third-party litigation funding (TPLF) and jury anchoring increase insurance costs, while 66% say these practices raise everyday item prices. Additionally, 77% agree that allowing foreign investors to participate in TPLF could pose a national security threat.
Embertson leads Erling, a Texas-based company specializing in fuel handling equipment sales and services with over three decades of industry experience.