The U.S. Chamber Institute for Legal Reform (ILR) released this study by NERA Economic Consulting showing that the U.S. has the world’s most costly legal system as a share of its economy. The study compared liability costs as a percentage of GDP using general liability insurance sold to companies in Canada, Eurozone countries, and the U.S. because it covers similar types of costs in each country. Data shows that as a percentage of its economy, the U.S. legal system costs over 150 percent more than the Eurozone average, and over 50 percent more than the United Kingdom.

2. Welcome
• US Chamber Institute for Legal Reform
• United States Legal System
• United Kingdom Context
• Mission of the ILR in the United Kingdom and the European Union

3. • Examined general liability insurance data
• The countries for which sufficient data exist constitute over 83 percent
of Eurozone GDP, plus the US, Canada and the UK
• Research controlled for other factors that might lead to cost
differences:
• Differences in the mix of business in a country
• Spending on government social programs
• The cost of private healthcare
• Features of the legal environment in each country are highly correlated
with litigation costs, implying that changes to the liability system may
have a substantial effect on costs
NERAInternationalStudyMethodology

4. NERAInternationalStudy–KeyResults
2011 Liability Costs as a Percent of GDP

5. NERAInternationalStudy–KeyResults
From 2008 to 2011, the UK saw a 47.7% increase in litigation costs
47%

6. US Consumer Research
Key Data from National U.S. Survey: Collective Action Lawsuits
April 7-10, 2013
#13117
Methodology:
• National survey of 800 voters throughout the United States
• Interviews conducted April 7-10, 2013, on both cell and landline phones
• Margin of error of + 3.46% overall; margins of error for sub-groups will vary by
population size
• Some comparisons made to national voter surveys conducted on behalf of
ILR from 2001 – 2012

7. Key Results
Consistent with what we measured last year, voters view the number of lawsuits as a
serious problem.
Question: “Do you think the number of lawsuits is a very serious problem, a somewhat serious problem, a not-
so-serious problem, or a not-at-all serious problem?”
84% 87%
14% 11%
2012 2013
Total Serious Problem Total Not Serious Problem
Number of Lawsuits Serious/Not Serious Problem

8. Key Results
Question: “2001: And, to the best of your knowledge, have you ever received something in the mail saying
that you may qualify to be a member of a class in a class action lawsuit? | 2013: Have you ever received a
notice in the mail or via e-mail that advises you that you are, or could become, a plaintiff in a class action
lawsuit?”
57% 61%
42% 38%
2001 2013
Yes No
+15% +23%
Received Notice They Qualify for Class in Class Action Lawsuit
Three-in-five American voters say they have received notice they qualify for a class
action lawsuit - slightly more than 12 years ago.

9. Key Results
Question: “And, thinking about any notices you have received in the last two or three years, did you receive
from the settlement of those cases something of meaningful value, considering your effort to comply with the
notices, or not?”
Very few of those who participated in a lawsuit recently report receiving something of
meaningful value as a result.
Received Something of Value
from Class Action Settlement:

10. More abuse of the legal system 69%
Less abuse of the legal system 2%
The level of abuse has stayed
about the same
25%
Question: “Thinking back over the last ten years, would you say there is…”
Key Results
Voters say there has been increased abuse of the legal system in the last decade.

11. The lawyers who file the
lawsuit
76%
The people on whose behalf
the lawsuit is filed
14%
Key Results
Question: “And more specifically, who do you think most benefits from class action lawsuits…”
More than three-fourths of voters say lawyers benefit more than the people on whose
behalf class action lawsuits are filed.

12. 12% 15%
80% 76%
Involved in Civil Suit
(21%)
Not Involved in Civil Suit
(77%)
The People The Lawyers
Benefits from Class Action Lawsuits by Involved in Civil Suit
Key Results
Question: “And more specifically, who do you think most benefits from class action lawsuits…”
Four-in-five voters who have been involved in a civil lawsuit say that lawyers benefit
the most.

13. In fact, the overwhelming majority say it is a problem that the people suing end up with
little of the money. Lawyers end up keeping most of the money awarded in these
cases, while the people suing end up with little of the money.
Question: “Still thinking only about class action lawsuits...the following are a few issues some people have said
are problems while others have not. For each one, please tell me whether you think this is a...”
Significant Problem
Total Problem
Key Results

14. Definitely
Acceptable 6%
Probably Not
Acceptable
27%
Don’t Know
10%
Probably
Acceptable
13%
Definitely Not
Acceptable
44%
Total Acceptable 19%
Total Not Acceptable 71%
Key Results
Question: “Would you say this is an acceptable practice that should be allowed or not an acceptable practice
that should be stopped”
By large margins, voters continue to say that third party financing of lawsuits is not
acceptable.

15. UK Consumer Research
Key Data from National U.K. Survey: Collective Action Lawsuits
Ipsos-MORI May 3-5, 2013
#13117
Methodology:
• 1,036 adults (18+) throughout the United Kingdom.
• Questions added to the omnibus regularly conducted by Ipsos MORI. Quotas
were set on age, sex, and standard geographical regions.
• The data is also weighted against the profile of the UK to provide a
representative sample.
• Interviewing via telephone May 3-5, 2013.
• Bipartisan team of Public Opinion Strategies and Penn Schoen Berland
constructed the questions with guidance on wording from Ipsos MORI.
• The margin of error is + 3.1%.

16. Key Results
By a three-and-a-half-to-one margin, U.K. residents are more likely to advise
U.K. decision-makers to avoid making changes similar to the U.S. system than
to model it.
Question: “Decision makers in the U.K. are considering changing the U.K.’s civil legal system to
be more like the U.S. system because they say it will help the U.K. consumer more than under
the current system. As a consumer in the U.K., if you could offer some advice to your leaders as
they consider making changes, would you tell them…”
That the American system has
more problems than the U.K.
system and they should NOT
make changes to be more like
the American system.
57%
That the American system has
more advantages than the U.K.
system and they SHOULD make
changes to be more like the
American system.
16%

17. Key Results
By a four-to-one margin, U.K. residents are more likely to advise E.U.
decision-makers to avoid making changes similar to the U.S. system than to
model it.
Question: “Recently, some European Union decision makers in Brussels have proposed
changes that could result in national legal systems containing more elements of the United
States system. If you could offer some advice to leaders in Brussels as they consider
making changes, would you tell them…”
That the American system has
more problems and they should
NOT make changes to be more
like the American system.
60%
That the American system has
more advantages and they
SHOULD make changes to be
more like the American system.
14%

18. Key Results
By large margins, respondents continue to say that third party financing of lawsuits
is not acceptable.
Question: “Would you say this is an acceptable practice that should be allowed or not an
acceptable practice that should be stopped?”
Probably Not
Acceptable
25%
Definitely Not
Acceptable
31%
Don’t Know/
Refused
9%
Both/Mixed
5%
Definitely
Acceptable
10%
Probably Acceptable
20%Total Acceptable 30%
Total Not Acceptable 56%

19. Key Results
A number of features of the U.S. civil litigation system
make U.K. residents less inclined to model it.
Only about one-half of the money awarded in the U.S. system
goes to actual victims—lawyers end up with the remainder.
A recent study comparing the cost of the U.S. lawsuit system
as a percentage of their economy to other nations shows that
the U.S. system is the world’s most expensive—50% more as
a cost to the economy than the U.K. system, and more than
twice as expensive as most other E.U. Nations.
Question: “Taking a step back…here are some things you might hear about the American civil lawsuit system. For
each one, please indicate if this makes you more inclined to want to change the U.K.’s current system to include
elements of the U.S. system, less inclined to want to change the current system, or does it not make much
difference in your opinion.”
Lawsuits cost America’s small businesses billons of dollars each
year: money that could go to creating new jobs, or providing workers
with better health care or retirement benefits.
Courts are clogged with frivolous lawsuits, and that leaves people
with serious injuries having to wait to receive their fair
compensation.
U.S. class action lawsuits make it easier to bring court
actions, and this is a good development for the U.K.
Lawsuits help ensure that companies are careful and that
products are safe for consumers.
Less InclinedNo DifferenceMore Inclined
9%
7%
18%
23%
28%
39%
16%
18%
18%
21%
29%
33%
72%
71%
61%
52%
36%
23%

20. Further Information
For further information, please contact:
London
Raj Aujla: rajmeena.aujla@fleishmaneurope.com T: +44 20 7395 7176 M: 07710301679
Ben Baruch: ben.baruch@fleishmaneurope.com T: +44 20 7395 7076 M: +44 07912 578 213
Washington DC
Bryan Quigley: bquigley@USChamber.com T: +1 202 463 5569
US CHAMBER INSTITUTE FOR LEGAL REFORM
The U.S. Chamber of Commerce Institute for Legal Reform (ILR) represents the interests of over 3
million businesses of all sizes, many of which operate in the UK, and some of which are British-owned
and operate in the US.
The ILR was founded by the U.S. Chamber of Commerce in 1998 to address America's rapid expansion
of litigation, with the aim of making the legal system simpler, fairer and faster for everyone. It now
seeks to share its experiences with UK policymakers, helping to protect the integrity of the British
justice system against the worst aspects of U.S. litigation culture.