Holiday preparations are in full swing, and no one wants to be on the “bad” list this time of year. When it comes to our legal climate, however, Louisiana has managed just that, even after significant attempts at legal reform this year.
The American Tort Reform Association recently released its list of the worst civil justice climates in the country and Louisiana remains a fixture. The state has continued its losing streak with a 15th appearance on the infamous Judicial Hellholes list, coming in at No. 10.
Report highlights include:
• Increase in “nuclear verdicts,” exorbitant jury awards typically in excess of $10 million. Louisiana ranks eighth nationally for these massive personal injury and wrongful death awards.
• No resolution to the coastal lawsuits saga, threatening billions in damages that target the state’s job-creating energy industry, while failing to provide any actual help for coastal restoration despite a 2022 “landmark settlement” in the bellwether Freeport McMoRan case.
• Insurance lawsuit schemes targeting hurricane victims and the state’s vital trucking industry. The well-documented “Operation Sideswipe” scheme has led to more than 60 indictments and even a murder charge.
• Gov. Jeff Landry’s veto of transparency legislation to repeal the collateral source rule, even after receiving strong bipartisan support in both the House and Senate.
These are glaring examples of a civil justice system that is not working for all Louisianas. In fact, it is costing taxpayers and businesses every single day, extracting an annual “tort tax” of nearly $1,000 per resident. Due to these costs associated with lawsuit abuse, more than 40,500 jobs are lost annually statewide, affecting the ability of Louisiana residents to afford basic essentials and impacting the state’s ability to attract and grow businesses. (Source: 2024 Economic Benefits of Tort Reform)
Louisiana’s Judicial Hellhole® status is more than just a negative moniker. It costs real jobs, ratchets up prices, and drives away businesses. This kind of systemic abuse stifles potential prosperity and wipes out billions of dollars in economic activity in Louisiana every year. Louisiana simply can’t afford to wait any longer for comprehensive legal reform.