As Louisiana's litigation costs rise to over $2 billion, questions are being asked by groups such as the Louisiana Association of Business and Industry regarding how much longer the judicial system will allow costs to increase before making reforms.
According to an article published in Watchdog featuring information from a report by the Perryman Group, excessive litigation in the state has cost Louisiana $1.1 billion in annual direct costs, $1.5 billion in annual output costs and the loss of 15,556 jobs.
As of 2018, the yearly fiscal losses as related to excessive litigation have totaled $76.4 million, costing businesses, families and individuals, and the report shows that tort reform could either reduce or eliminate these costs.
Lauren Chauvin
| Louisiana Association of Business and Industry website photo
The Louisiana Association of Business and Industry (LABI) is worried about the legal climate in the state and sees that it has had an impact in various areas.
"Louisiana’s legal climate has inhibited growth, discouraged enterprise and changed the way we live our personal and professional lives for the worse for a long time," Lauren Chauvin, director of civil justice with LABI recently told the Louisiana Record.
Chauvin pointed to auto insurance costs which have risen substantially in recent years.
"Take a look at the auto insurance crisis we have on our hands; bus drivers, the ultimate small business owners, some with decades of perfect driving records, are being forced to park their buses, and their livelihood, because they can’t afford the insurance," Chauvin said.
Auto insurance isn't the only insurance costs on the rise, however, as health insurance premiums continue to increase due to frivolous lawsuits, which is resulting in fewer medical services being available, according to Louisiana Lawsuit Abuse Watch.
Louisiana was recently ranked 50th by the U.S. Chamber Institute for Legal Reform in the 2017 Lawsuit Abuse Climate Survey.