Following the recent release of the U.S. Chamber of Commerce Institute for Legal Reform's findings concerning the cost of tort litigation across the country, Louisiana Lawsuit Abuse Watch (LLAW) is concerned about the burden that these litigations place on families, businesses and individuals in the state.
The Institute for Legal Reform found that Louisiana's lawsuit costs are among the highest in the nation, with tort litigation costs totaling nearly $7 billion in 2016, which is the equivalent of over $4,000 for every household in the state.
"This study clearly shows that our tort system, as a whole, is both expensive and extremely inefficient. As a result, Louisiana households – through higher prices that ripple through our economy – are footing the bill for a system that serves them poorly, if at all," Lana Venable of LLAW told the Louisiana Record.
The Louisiana civil justice system has come under scrutiny lately, as the state is known for its excessive litigations; and according to Louisiana Association of Business and Industry, "the impact on the Louisiana economy ranks among the top five states in the nation, as litigation costs equate to almost 3 percent of the state’s GDP."
Venable said everyone who insures a vehicle is feeling the burden of the costs, and the rates are only increasing as competition decreases.
"Louisiana has the second highest insurance rates in the country, with Baton Rouge and New Orleans having among the top five most expensive premiums of any U.S. city. Many insurers have cited Louisiana’s litigious environment as too high-risk and have stopped writing policies here," Venable said.
The situation is so bad that a legislative task force was formed to address the issues, Venable said, stating that states that have employed reforms have seen improvements in the judicial system and economics.
"Our neighbors in Texas have enacted common-sense reforms over the years, contributing to their strong business climate. This has led to creation of new jobs and a more balanced legal system in the Lone Star State," Venable said. "It’s time for Louisiana to address these frivolous costs that impact our families and businesses and move our state forward."