The $4,000 bill Floridians are paying without realizing it
Bottom Line: Last week a report from the Competitive Enterprise Institute showed Florida, as unusually friendly to businesses and most perhaps most importantly – you and me. The issue is Florida’s legal environment. The study was based on the findings from 1,300 corporate attorneys across the country and the feedback they provided about the legal environment (for being able to effectively being able to operate a business). That sounds like a lot of inside baseball that might not matter to you on the surface, unless you’re a business owner, but this will. Florida’s legal environment is costing you more than $4,000 more per year. I’ll explain...
According to the study, Florida ranks 5th worst nationally for its legal system as it pertains to companies. Basically, it’s like this. There are a lot of frivolous lawsuits waiting to happen and Florida’s legal system invites them more than just about all other states. The costs associated with the legal defense is already taxing to businesses and often they are placed in a situation where settling even fringe cases, that are seemingly encouraged by our state’s legal system, may be cheaper than fighting in the courts to defend their interests. Just as businesses don’t pay taxes, people pay taxes, and remember – businesses are nothing more than a collection of people inherently – Floridians end up paying the price for Florida’s loose legal environment.
Using the CEI data, the Florida Chamber of Commerce calculated the annual cost to the average household to be a staggering $4,442 annually as a result of higher prices we pay for goods and services due to Florida’s current legal system. Governor Ron DeSantis has acknowledged this and stated its part of why he’s placed such a priority on overhauling Florida’s legal system from the day he took office. If he proves to be successful there’s a lot of financial upside for Floridians.