Louisiana needs legal reform, not only to address rising insurance costs, but to fix a civil justice system that has become increasingly hostile to businesses and consumers. Louisianans continue to face an untenable insurance crisis and – though a glaring one – this is only one example of an unpredictable civil justice system that fosters excessive litigation, discourages new business and innovations and drives up costs for all of us.
A healthy civil justice system should provide a framework to address wrongs and seek redress for injuries or damages caused by others. Our system in Louisiana has long been out of balance. Litigation has become ingrained in our culture, fostering a “jackpot justice” mentality. Lawsuits are not economic development, but they have become a cottage industry for a handful of big-time trial lawyers who spend tens of millions annually on advertising. A national study recently released by the American Tort Reform Association found that more than $20 million was spent on advertising in Louisiana during the first quarter of 2024, alone. Clearly, these investments are paying off.
“Nuclear verdicts” of $10 million+ are on the rise in Louisiana, keeping us on the Judicial Hellholes® list. Georgia, seeing a similar surge in these excessive verdicts, passed comprehensive legal reforms earlier this year to limit lawsuits and reduce consumer costs, with key provisions including restrictions on attorney fees, regulation of third-party litigation funding, and changes to trial procedures.
In the first quarter of this year, two precedent-setting judgments were handed down in Louisiana. Last month, the first of 41 coastal lawsuits was tried in Plaquemines Parish, resulting in a staggering $745 million damage award. In February, the 19th JDC awarded record damages of over $411 million to one individual in a single case.
If judgments remotely close to these become common, Louisiana will face a parallel crisis: along with current insurance unaffordability, many businesses will have to determine whether they can keep their doors open. New investments are likely to go to less litigious states that provide more predictability, while hardworking Louisianans will feel the effects of these missed opportunities for years to come.
Texas enacted sweeping reforms more than two decades ago, cementing its reputation as one of the top states for business attraction. Florida has also seen tremendous economic benefits through significant legal reforms passed in 2022 and 2023.
With all these successes in neighboring states, enacting comprehensive legal reform in Louisiana should be a clear priority.
Reducing frivolous lawsuits and increasing transparency across our civil justice system are crucial if the goal is putting Louisiana’s families and job creators first. Let’s get it done.
