Tort reform advocates highlighted their concerns about Louisiana’s legal climate during Lawsuit Abuse Awareness Week beginning on Oct. 2, with grassroots groups trying to drum up support for legal reforms in the governor’s race and among voters around the state.
Groups such as Louisiana Lawsuit Abuse Watch (LLAW) and the American Tort Reform Foundation (ATRF) this past week have focused on highlighting what they see as injustices in the civil justice system, as well as the societal costs associated with the problem, both in Louisiana and across the nation.
“All Louisianans can be part of the solution by serving on a jury when called, by understanding their legal rights and by making smart choices when hiring a lawyer or considering filing a lawsuit,” LLAW said in an opinion article. “During this election year, it is also critical for residents to exercise their right to vote by casting an informed ballot. We hope that voters will consider candidates who are committed to improving our civil justice system for all Louisianans.”
Tort reform has been among the talking points highlighted by some of the candidates running for governor this year..
“The need for legal reform has been a hot topic in this race – and for good reason,” Lana Venable, LLAW’s executive director, said in an email to the Louisiana Record. “From the ongoing coastal (erosion) lawsuits saga to more recent schemes targeting victims of hurricanes and our vital trucking industry, lawsuit abuse continues to be an issue costing all Louisianans.”
Data collected by LLAW and other groups points to the financial costs associated with excessive civil litigation, including the increased costs of goods, services and insurance premiums.
“The American Tort Reform Foundation ranked Louisiana the seventh-worst Judicial Hellhole in the U.S. in its 2022-23 report,” the LLAW reported. “A 2023 study conducted by the Perryman Group for Citizens Against Lawsuit Abuse (CALA) found excessive tort litigation in Louisiana resulted in nearly $270 million in fiscal impact to the state and nearly 50,000 job losses.”
The costs of excessive litigation in Louisiana, including local government losses of nearly $225 million per year, amounts to a hidden “tort tax” of $1,200, according to the Perryman Group report.
“We see (civil litigation costs) in the lack of availability and affordability in our insurance market and feel it every time we buy goods and services,” Venable said. “... LLAW urges all citizens to cast an informed ballot and support meaningful civil justice reforms that will reduce these costs and improve Louisiana’s economic competitiveness.”
Louisiana has made “incremental progress” in reforming its litigation climate, according to LLAW, which points to recent reforms being passed in the Legislature to curb false or misleading advertising.
“(But) much more remains to be done,” the LLAW opinion article states. “Issues including lack of transparency in our judicial system, coastal lawsuits that threaten our economy and insurance schemes designed to take advantage of businesses and consumers are all prime examples of critical issues that must be addressed.”
LLAW acknowledges that a civil justice system is needed to address legitimate disputes and compensate injured parties but expresses concern about how the system can break down when it is gamed or abused.
“The goal of Lawsuit Abuse Awareness Week is to bring to light the issue of abusive lawsuits and questionable legal practices – and to inform Louisianans of the costs of these abuses that are passed on to all of us,” the LLAW article says.