SHREVEPORT — As civil litigation costs continue to rise, the state of Louisiana is footing the bill, and industry groups such as the Louisiana Oil and Gas Association fear for what excessive litigation might do to the state and the economy if allowed to continue.
Excessive civil litigation has cost Louisiana $1.1 billion in annual direct costs with an additional $1.5 billion in annual output costs, and has even cost the state 15,556 jobs, according to a report published by the Perryman Group.
"Louisiana has made it clear: more jobs, not lawsuits," Louisiana Oil and Gas Association President Gifford Briggs told the Louisiana Record.
Briggs said that groups working in oil and gas are upset by the lawsuits being brought against them, such as one alleging that the industry is contributing to coastal erosion. Many of these lawsuits are demanding large settlements, costing the companies not only money but also jobs, he said.
"Frivolous litigation and excessive tort has driven away future economic investment, kept oil and gas activity in South Louisiana stagnant, and given our home state the tag of a litigious hellhole," Briggs said.
Briggs' assessment of the situation was in line with other organizations such as the Pelican Institute, a free market think tank based in New Orleans, which has claimed that the nearby states of Texas and Tennessee are much more friendly toward business. The business-friendly nature of these states makes them a natural option for companies and families who simply cannot afford to stay in Louisiana, the think tank has said.
Louisiana will need to undergo reform to put limitations and boundaries on both what can be filed as tort litigation and how much the awards can be if the state is going to improve in its litigious habits, it adds.
In 2017, the U.S. Chamber Institute for Legal Reform's Lawsuit Abuse Climate Survey ranked Louisiana last out of all states.