Tort reform advocates in Louisiana are hailing a bill that has passed the legislature and are calling on the governor to sign it into law.
Daniel Erspamer, chief executive officer of the Pelican Institute, said SB 418 will “reign in lawsuit abuse and get Louisiana working.” He called on Gov. John Bel Edwards to sign the bill.
“SB 418 will help to make Louisiana a place that creates and encourages the growth of jobs and opportunity rather than the stagnation brought on by approaches of the past,” Erspamer told the Louisiana Record. "We hope the governor joins super majorities in both chambers of the legislature, as well as Louisiana’s taxpayers and working families, in supporting this important legislation.”
Louisiana drivers are paying the second-highest auto insurance rates in the country, Lana Venable, executive director of Louisiana Lawsuit Abuse Watch, said.
“SB 418 is a significant win for legal reform in Louisiana,” she told Louisiana Record. “The bill, containing a package of reforms aimed at lowering auto insurance rates for Louisiana drivers has been a long time coming.”
The bill was supported by legislators elected last fall on pro-legal reform platforms, Venable said.
“As we work toward rebuilding our economy, these reforms – benefiting both families and businesses – are more critical than ever,” Venable told Louisiana Record. “We hope Governor Edwards agrees."
For personal injury cases, the legislation lowers the threshold for jury trials from the current $50,000 to $10,000. Louisiana currently has the highest threshold in the country, three times higher than Maryland, the second highest, Venable told the Louisiana Record. Thirty-six state have no thresholds, she said.
The bill would also eliminates the so-called “seat belt gag rule” prohibiting juries from being told whether seat belts were in use during a crash. Further, it gives plaintiffs two years instead of one to file a claim in a motor vehicle accident.
If Edwards vetoes the bill, it’s unclear whether supporters would have the two-thirds majority to override it, the Associated Press reported.