The director of civil justice for the Louisiana Association of Business and Industry (LABI) is concerned about the high cost of litigation and what it means to those living in the state.
According to a recent report by the Institute for Legal Reform, Louisiana has some of the highest litigation costs in the nation, with families and businesses bearing a great deal of the burden of these costs. In 2016, families and businesses had to pay nearly $7 billion in expenses that were related to tort litigation which, when adjusted for the number of families in the state, means that more than $4,000 was paid by every household in the state.
"Imagine if you moved to Louisiana, bought a house, enrolled your children in school, started a new job or opened a business, and then received a bill demanding that you pay $4,000 – just because you happen to live and work in this state," Lauren Chauvin, director of civil justice at LABI, told Louisiana Record. "That’s essentially what’s happening to our families and small businesses, bit by bit, as they face higher costs for necessities like auto insurance, which is skyrocketing as a result of Louisiana’s ridiculous legal climate."
LABI is looking for ways to counter the excessive costs, but this will not happen without real reform and limitations for those who are filing tort lawsuits.
"If we do the right thing as a state, we’ll be shocked at how easy it is to bring those costs down. It’s not politics, it’s just math," Chauvin said. "Something has to change, and we’re looking ahead to the next legislative session for opportunities to tackle things like the seat-belt gag rule and other factors that keep Louisiana in the nation’s top ‘Judicial Hellholes.'"
According to the findings by the Institute for Legal Reform, the impact on Louisiana's economy from litigation costs is nearly 3 percent of the state's GDP.