Louisiana’s trucking industry doesn’t expect any instant benefits such as lower vehicle insurance rates and fewer litigation burdens as a result of the Civil Justice Reform Act of 2020 taking effect Jan. 1.
Renee Amar, executive director of the Louisiana Motor Transport Association, agrees with state Insurance Commissioner Jim Donelon that evidence of positive changes resulting from the reforms likely won’t materialize for a couple years. But the results should be either less litigation or less expensive claims at some point. Amar said.
“It’s kind of like a two-headed snake,” she told the Louisiana Record. “We’re an incredibly litigious state, and we like to do a lot, even though many times it’s not the truckers’ fault.”
Amar
The Civil Justice Reform Act – House Bill 57 – aimed to reduce legal costs in civil cases such as insurance disputes. As a result of the new law, the monetary threshold to file for a jury trial in a civil action went from $50,000 to $10,000, which is more in line with the thresholds in other states.
The new law also changes how medical expenses will be described in the courtroom. Under HB 57, medical expenses refer to the amount the medical provider was actually paid. Previously these expenses were described as the amount the provider billed – the so-called sticker price rather than what was eventually negotiated.
In addition, the Civil Justice Reform Act repeals a provision of prior law that barred the mention of a driver’s failure to wear a safety belt during court proceedings in order to mitigate damage awards.
Many current insurance policies will remain in effect through July, and the reforms will only affect new cases working their way through the courts.
“That is definitely going to take a little while to work its way through the court system,” Amar said.
But even so, the hope is that the reforms will result in smaller claims and less of a burden for companies, she said.
“You’re going to have 100 cases that might scale back to 75 to 80,” Amar said.