Nancy Hoffman Vanyek, President and CEO of the Greater San Fernando Valley Chamber of Commerce, said that Californians largely support measures to curb lawsuit abuse. She described it as a hidden tax that increases household and insurance costs. The statement was made in an op-ed.
“Eighty-three percent of Californians say the legislature should act to stop lawsuit abuse and eliminate what they call the “hidden tax” on families,” said Hoffman Vanyek. “In a nation where consensus on almost anything is rare, that number should stop lawmakers in their tracks. Rarely do we see such clarity across political, geographic and demographic lines. When nearly nine out of 10 Californians are sounding the alarm, policymakers should be racing to respond.”
California’s affordability issues are exacerbated by legal costs that elevate prices and insurance premiums. According to the Insurance Information Institute, “legal system abuse” and social inflation have significantly increased claim severity and payouts, thereby raising consumer costs. As reported by the San Francisco Chronicle, litigation pressures have also driven public-entity insurance premiums higher, contributing to statewide expense growth.
According to a May 2025 poll by Public Opinion Strategies, commissioned by Protecting American Consumers & Taxpayers, 90% of California voters said their cost of living has risen, with 72% believing lawsuit abuse contributes to this increase. Furthermore, 83% favor reforms aimed at reducing excessive litigation costs. The survey reflects bipartisan concern about the economic impact of lawsuit abuse on households and small businesses.
The U.S. Chamber Institute for Legal Reform’s 2024 Tort Costs in America report found California’s tort cost reached $5,429 per household in 2022, compared with $4,594 in Texas and $4,281 in Illinois. The report notes these legal costs are passed through in consumer prices, insurance rates, and service costs, indicating California’s litigation environment imposes above-average economic burdens.
Vanyek has been President and CEO of the Greater San Fernando Valley Chamber of Commerce since 1993 after joining in 1987 as its first woman leader. According to the Los Angeles Business Journal, she focuses on small-business advocacy, workforce initiatives, and regulatory reform to enhance economic competitiveness in California’s Valley region.
The Greater San Fernando Valley Chamber of Commerce was founded in 1911 with a mission to foster community relationships, advance economic development, and advocate for pro-business policies. According to the chamber itself, it represents the Valley’s largest business network and prioritizes issues like tax reform, workers’ compensation, and regional growth.
