The Louisiana legislature this week overwhelmingly passed a revamped tort reform bill that supporters say will improve the state’s legal climate and reduce auto insurance rates in the state.
House Bill 57 by House Speaker Clay Schexnayder (R-Gonzales) would lower the monetary amount that triggers a civil jury trial from the current $50,000 to $10,000, something supporters say would encourage more reasonable settlements in such cases.
The bill, which is similar to a bill by state Sen. Kirk Talbot (R-River Ridge) that was vetoed by Gov. John Bel Edwards, would also end the current state prohibition against allowing juries to hear certain evidence on plaintiffs’ use of safety belts. Allowing such evidence to be heard would help to reduce inflated injury rewards, reformers argue. And HB 57 would limit the definition of medical damages in insurance claims to the amount actually paid, as opposed to so-called “sticker prices,” though a judge could adjust the award after the trial.
Stephen Waguespack, the CEO of the Louisiana Association of Business and Industry (LABI), said the passage of the bill marked the beginning of a new era when the state would move forward on more sensible legal reforms to reduce costs ultimately paid by consumers.
“HB 57 is a strong first step for Louisiana’s working families and job creators that will help begin the process of rebuilding Louisiana’s insurance markets,” Waguespack said in a prepared statement.
Lana Sonnier Venable, executive director of Louisiana Lawsuit Abuse Watch (LLAW), said the passage of the bill, Civil Justice Reform Act of 2020, was the product of compromise, common sense and thoughtful discussions.
“An improved legal climate will make Louisiana more competitive when it comes to attracting new jobs and economic opportunities, as well as expanding our existing business and industry base,” Venable told the Louisiana Record in an email. “We depend on our logging, agriculture and petrochemical industries and affiliated businesses to keep our economy rolling.”
Voters who elected new state lawmakers last year were also an integral part of the effort to pass tort reform, she said.
“Voters sent a clear message at the ballot box last fall by electing many new legislators who ran on a platform to fix our broken legal system,” Venable said. “Louisianans are tired of accepting the status quo and substituting ‘jackpot justice’ for real economic development and quality jobs. The message was clearly not lost on the legislature.”
The overwhelming bipartisan support for the bill comes after years of advocacy by groups like LABI and LLAW. HB 57 passed the House of Representatives by a vote of 86 to 15, and senators previously approved the measure on a vote of 35 to 4.
“This new legislature is obviously hungry to change Louisiana’s reputation for a poor legal climate, and HB 57 appears to be simply the first bite of that apple,” Waguespack said. “Our work has only just begun.”
The Democratic governor said this week he would sign the reform bill after the Republican-led legislature passed it.