Researchers have determined that California ranks among the most expensive places to live in the United States, surpassed only by Hawaii, Washington D.C., and Massachusetts. Local small business owners attribute part of this high cost of living to the "tort tax" burden shouldered by residents.
Statista, a digital platform specializing in data collection and visualization, employed a national benchmark of 100 to signify the average cost of living across the U.S. According to Statista's report, California's cost of living score stands at 137.6, considerably above the national average. This score is derived from a composite index examining the costs of various goods and services.
In an op-ed published by the Times of San Diego, George Coles, proprietor of Coles Fine Flooring, argued that California's legal system negatively impacts both the state's business environment and its consumers. Coles stated that serial tort lawsuits are causing California to miss out on billions of dollars in potential gross domestic product (GDP) and tens of thousands of jobs. He suggested that each Californian resident is unknowingly paying a "tort tax" up to $3,600 due to these lawsuits - a reference to litigation costs passed onto consumers through price increases.
Coles maintained that as a small business owner, these figures did not surprise him since he has had to allocate funding disproportionately towards legal expenses. He noted that many small businesses have faced lawsuits over alleged violations of the Americans with Disabilities Act (ADA). In some instances, he claimed consumers were not harmed by these violations but were merely seeking profit alongside their lawyers. Coles referenced reports indicating that California experienced more ADA lawsuits than any other state in 2020 and 2021. "California's ADA lawsuits are just one example of how legislative overreach and legal exploitation are exacerbating conditions here in the Golden State," said Coles. He added: "While most Americans and American businesses are grappling with post-COVID-19, inflationary economic conditions, our legal system is transforming universal challenges into a Category 5 hurricane for Californians." He asserted that some attorneys in California earn their entire income from ADA lawsuits, as per his commentary in the Times of San Diego.
Coles Fine Flooring is based in San Diego, as stated on George Coles' LinkedIn page. He joined the business in 1973 and is a graduate of Santa Clara University.
According to Zippia, California ranks second among the highest-paying jurisdictions for trial attorneys in the country, trailing only Washington D.C. The state has 466 trial attorneys who earn an average salary of $125,985. Zippia also reported that California boasts the highest number of trial attorneys nationwide, with Florida coming second with 301.