As the 2023 Louisiana State Legislature session moves forward, the Louisiana Lawsuit Abuse Watch is keeping tabs on a few things being discussed by legislators.
According to their website, LLAW was established in 2007 and “works to raise awareness about the costs and consequences of lawsuit abuse for all Louisianans. LLAW urges our elected officials to bring more balance, fairness and common sense to the state’s civil justice system. Through community outreach, public education and grassroots advocacy”
The organization is “dedicated to supporting legislative initiatives for legal reform, promoting transparency in Louisiana’s judiciary system, ensuring citizens understand their legal rights and encouraging jury service.”
Venable
LLAW is tracking a few legislation initiatives across the board, but one in particular is Senate Bill 196 by Senator Barrow Peacock, R-Shreveport-Bossier, according to Lana Venable, executive director of LLAW.
“With our partners, Louisiana Legal Reform Coalition (formerly the Coalition for Common Sense), LLAW is primarily focusing on SB 196 by Sen. Peacock (R-Shreveport-Bossier) addressing third-party litigation funding,” Venable wrote in an email to The Louisiana Record. “This growing trend, having an investor help finance a lawsuit in which the investor has no personal stake, is concerning. These third parties ensure high rates of return for their investment, turning lawsuits into profit centers.”
Venable stated that ability to hide one’s identity is concerning.
“These arrangements lack transparency, as parties to TPLF agreements are not required to disclose themselves. Thus, defendants and courts do not know the presence or identity of the funders as real parties in interest,” Venable stated. “Because of this lack of transparency, TPLF is attractive to hedge funds as litigation financiers because the industry is not subject to the same limitations and regulatory oversight as normal consumer loans and funds, avoiding consumer protection oversights. TPLF is estimated to be a $400 billion global industry.”
While LLAW is keeping close tabs on SB 196, Venable stated it is not the only legislation on their radar and the organization is encouraging citizens to engage with those running for office.
“We are also tracking other legislation with potential impact to our civil justice system. In this election year, we encourage all Louisianans to engage with those running for office at all levels,” Venable stated. “It is important to understand the impact our elected officials have on our state’s legal climate which affects everything from the costs of goods and services to attracting new businesses with associated jobs and economic impact to our state.”
Not only is LLAW busy tracking the current state session, but the organization is working to ensure potential lawsuits are not used to address public policy.
Coastal parishes have continuously rejected lawsuit settlement offers from oil companies related to coastal erosion.
Venable stated that these lawsuits send a negative message on behalf of the state.
“LLAW maintains that the coastal lawsuits lack merit and are not good for Louisiana. This litigation sends the wrong message to current and potential investors and implies that the state’s vital energy policies are better determined in the courtroom instead of by our citizen-elected leaders,” Venable stated via email. “Our laws should not be subject to the whims of the trial bar and the State should not allow these private attorneys to represent its interests, implying that the laws on the books cannot be relied upon. We will oppose any efforts that endorse these lawsuits as a means to address public policy.”
The Louisiana Record previously reported that the U.S. Supreme Court rejected the energy companies' petition to send the lawsuits to federal courts earlier this year.
Venable stated that LLAW would prefer to see proactive work done to the coasts, without dissuading investors from coming to the state.
“I can’t speak for the state, but LLAW does not consider allowing plaintiff’s lawyers to act as regulators a sound solution to addressing coastal issues,” Venable stated. “These kinds of legal actions are bad Louisiana’s civil justice climate and discourage investment in our state. We would like to see these lawsuits dismissed and instead focus on the significant contributions of the State, the Army Corps of Engineers, industry, and others working proactively to protect and restore the coast.”
The current legislation session is scheduled to end June 8.