Lawsuit Abuse Awareness Week is observed during the first week of October in Louisiana and across the country. The goal of this awareness campaign is to shine a light on the injustices plaguing our civil justice system by informing citizens about the costs and consequences of lawsuit abuse.
While other southern states like Florida and Georgia are passing sweeping reform packages, Louisiana continues to progress limited changes. A small number of reform-minded legislators have authored bills to improve our system but have met resistance in the process. Texas, arguably our biggest competitor, implemented comprehensive reforms decades ago and continues to enact changes that ensure their reputation as a top state in the U.S. to do business.
Much more remains to be done in Louisiana. Legislation is needed to address ‘phantom’ damage awards for medical costs that are paid in cash by a plaintiff or their attorney, resulting in windfall awards for amounts far more than those actually paid. Another trend that has dampened businesses’ willingness to expand or come to Louisiana is that of government-sponsored litigation. A prime example is coastal lawsuits against oil and gas companies for operations over the last half century, much of which were permitted by state and federal agencies, resulting in outrageous verdicts. One such ‘nuclear verdict’ in Louisiana reached $745,000. Much more can be done to make Louisiana a more attractive destination for new and existing businesses.
These are not just Louisiana issues. Their impact reverberates across the national business and economic development landscape. The American Tort Reform Foundation ranked Louisiana the 10th-worst Judicial Hellhole® in the U.S. in its 2024-25 report. Earlier this year, a study conducted by The Perryman Group for Citizens Against Lawsuit Abuse found excessive tort litigation in Louisiana resulted in a hidden ‘tort tax’ of more than $1,000 per person (or nearly $4,500 for a family of 4) and roughly 40,0000 lost jobs for hardworking residents.
Louisianans deserve better. We all pay the price when our legal system is abused. We must work together to level the playing field and help ensure our courts are used for justice, not personal gain. Legal reform is simply good public policy, helping us remain competitive while bringing much-needed relief we can all feel in our pocketbooks.
We still have a long way to go. Let’s keep our foot on the gas, Louisiana.
