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Duane Morris Takeaway:This week's episode of the Class Action Weekly Wire features Duane Morris partner Jerry Maatman and associate Bernadette Coyle with their discussion of the 2025-2026 edition of the American Tort Reform Association's ("ATRA") "Judicial Hellholes Report," which details the eight least favorable venues for corporate defendants across the country.
Episode Transcript
Jerry Maatman: Thank you for being here, loyal blog listeners and readers, for the next episode of our ongoing series entitled The Class Action Weekly Wire. I'm Jerry Maatman, a partner at Duane Morris, and joining me today is my colleague, Bernadette Coyle. Welcome, and thanks for being on the podcast.
Bernadette Coyle: Thanks, Jerry, I'm very happy to be here.
Jerry: Today, we're discussing the annual report prepared by the American Tort Reform Association, known by the acronym ATRA, which is called the "Judicial Hellholes Report." It focuses on litigation issues and identification of jurisdictions likely to have unfair or biased administration of justice that, in essence, are very difficult places in which corporate defendants are sued. This is an important read for corporate counsel facing class action litigation, because it identifies the who, what, when, where, and how of what jurisdictions are most difficult in which to defend class action litigation.
Bernadette: That's right, Jerry. The report defines a "judicial hellhole" as a jurisdiction where judges in civil cases systematically apply laws and procedures in an unfair and unbalanced manner, which generally is to the disadvantage of defendants.
Jerry: This year's report identified eight total jurisdictions in its list, down from 10 that were identified last year. I'm sure our loyal blog listeners are anxious to hear what jurisdiction came out on top of the list as the most unfavorable jurisdiction in which to be sued.
Bernadette: Jerry, topping the list this year is Los Angeles. Although California has long been considered a plaintiff-friendly state, this year in particular, lawsuit abuse and judicial bias in Los Angeles have set it apart and pushed it to the top of the list. The report points to a $1 billion nuclear verdict, allegations of litigation abuse, and courts leaning into novel liability theories that broaden exposure for defendants. And small businesses are targeted in particular, being hit with ADA and no injury suits, while arbitration continues to face judicial resistance in California.
Jerry: Well, speaking from my own personal experience, I would agree it's a very difficult place to practice law and defend cases, and its inclusion and placement at the top of the list comes as no surprise. Moving to number two is New York Metro, New York City. What's happening there on the list?
Bernadette: New York City remained at number two this year, and the ATRF calls it a "fraudemic." The city continues to produce nuclear verdicts, courts are expanding product liability theories, especially against tech companies, and both no-injury filings and asbestos cases remain heavy in New York City.
Jerry: Number three came in with South Carolina. It's been on the radar for years of the American Tort Reform Association.
Bernadette: Exactly. The ATRF criticizes the relaxed causation standard, frequent sanctions, and even notes instances where courts increased jury awards because it believed that the jury did not go far enough.
Jerry: Let's hit the rest of the list of eight. Louisiana, I believe, comes in fourth.
Bernadette: Yes, the first coastal litigation case finally went to trial, and it ended in a nine-figure verdict. Interestingly, the ATRF also points to political connections between plaintiffs' lawyers and state leadership.
Jerry: Fifth is Philadelphia jurisdiction, where we're handling many class actions.
Bernadette: Right, and also last year's defending champion. A RICO lawsuit has raised allegations of fraud in the court system, and the complex litigation Center continues to attract mass tort filings, and historic nuclear verdicts are becoming more common.
Jerry: Sixth is Missouri in general, and St. Louis in particular. What are you seeing there?
Bernadette: Yes, the ATRF says courts there continue to allow junk science, and out-of-state plaintiffs are targeting St. Louis small businesses with ADA lawsuits. Judges have even overturned jury verdicts that they disagreed with.
Jerry: Seventh is a familiar Illinois trio, the counties of Cook, Madison, and St. Clair, the latter two of which were the motivating factors for the Class Action Fairness Act of 2005 that President Bush signed into law to allow for easier removal from state court to federal court. What's happening on the Illinois front?
Bernadette: They are described as ground zero for baby formula litigation supported by questionable science. Also, litigation tourism persists, asbestos filings are high, and nuclear verdicts continue.
Jerry: And rounding out the list, at number eight is the state of Washington in general, and King County, in particular, where we're seeing a rise of many employment-related class actions.
Bernadette: Correct. The report highlights the reinstatement of a nuclear verdict, expanded asbestos liability, and King County's role in pioneering climate change litigation against energy companies. And as we've seen, there's also been a sharp increase in class actions brought under the EPOA this year in Washington.
Jerry: Let's shift now to the ATRA's watch list. It highlights six jurisdictions that are not full judicial hellholes, but have been trending in that direction. What should our listeners know about the watchlist?
Bernadette: Three Georgia counties, Gwinnett, Fulton, and Cobb, are under scrutiny despite statewide reforms. The Pennsylvania Supreme Court did have a quieter year this year, but remains influential, especially in forum shopping and arbitration filings. Texas is seeing a rise in pro-plaintiff leanings and state-sponsored lawsuits. Michigan has major decisions pending, Louisiana still faces fallout from fraud schemes, and Kentucky continues to produce nuclear verdicts.
Jerry: The report also calls out what it calls dishonorable mentions. What stands out to you in terms of that list?
Bernadette: There are three main concerns noted in the report. First, the Fourth Circuit's broad approach to public nuisance, a Colorado evidentiary ruling that the ATRF finds troubling, and Ohio appellate courts that are permitting unlimited non-economic damages.
Jerry: Well, it's not all doom and gloom. There is a little bit of positive light. What does the report, refer to in terms of what it characterizes as "points of light"?
Bernadette: Yes, and there are some significant ones. Colorado rejected medical monitoring damages, Delaware and Maine pushed back on junk science and public nuisance expansion, North Carolina reaffirmed caps on non-economic damages, and the Utah Supreme Court eliminated phantom damages.
Jerry: Well, Bernadette, thanks so much for guiding us through the tour of the 2025-2026 Judicial Hellholes Report. It's essential reading for corporate counsel, and certainly any company involved in high-stakes litigation or defending class action litigation. The report certainly manifests what we see on a daily basis in terms of the epicenters of class action litigation, and where the plaintiffs' bar tends to file their cases in terms of trying to gain an advantage over corporate defenses.
Well, thanks so much for being here, Bernadette, and providing us with your thought leadership in this space.
Bernadette: Thank you for having me, Jerry, and thank you, listeners.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
