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U.S. legal system most costly, according to report

U.S. has dramatically higher cost for liabilities than the Eurozone

According to a recent report released by the U.S. Chamber Institute for Legal Reform (ILR), the U.S. legal system is the world’s most expensive. The report revealed that the legal system in the U.S. is one and a half times more costly than our neighbors across the Atlantic.

The study, which was conducted by NERA Economic Consulting, compared liability costs on 13 countries with each country’s gross domestic product (GDP). “The 13 countries included in the study have similar levels of regulation and legal protection, leading analysts to conclude that higher costs could be attributed to more frequent and/or costly claims,” Rees Morrison, a management consultant to general counsel, said on his blog.

The study showed that U.S. costs were 1.7 percent of the GDP—which equals about $221 million. Countries in the Eurozone had an average cost of around .4 percent of their GDP.

Read the full report, International Comparisons of Litigation Costs: Europe, the United States and Canada.

See more Facts & Figures on InsideCounsel.


Cathleen Flahardy

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