A Louisiana tort-reform group is lamenting the state being designated the 10th worst civil justice system in the nation in a new report published by American Tort Reform Federation.
Louisiana made its appearance on the annual Judicial Hellholes list this week with the publication of the 2024-2025 report, which points the finger at states that encourage innovative but questionable lawsuits, welcome litigation tourism and generally expand opportunities for liability actions in the state’s civil courtrooms.
The report faults Louisiana for becoming a mecca for “nuclear verdicts” of $10 million or more, for the continuing litigation of coastal erosion lawsuits that target the state’s energy industry and for insurance lawsuit schemes that highlight the need for reforms to fight lawsuit abuse. Such schemes, which often target the state’s trucking industry, have resulted in 60 criminal indictments and a murder charge.
“Louisiana state courts awarded $409 million in nuclear verdicts … against businesses in 2023 …” the report states. “A recent example occurred in September 2024, when an Opelousas jury (St. Landry Parish) returned an eye-popping $220 million verdict in a trial stemming from a collision between an ambulance and a pickup truck.”
The report also criticizes the Louisiana Supreme Court for vacating its decision in May that found the Legislature had unconstitutionally allowed time-barred claims to be filed by child sexual-abuse survivors against institutions such as the Catholic Church. The high court reversed that decision in June and approved a “lookback window” for victims to file such claims.
The report quotes Justice James Genovese’s dissent in the case, which points out that subjecting defendants to liability claims for events that occurred decades earlier – and well after a previously designated statute of limitations – is “tantamount to a violation of due process.”
“This marks the 15th year Louisiana has been included on this infamous list, improving slightly in the rankings, up from No. 7 last year,” Lana Venable, executive director of Louisiana Lawsuit Abuse Watch (LLAW), told the Louisiana Record in an email. “Clearly, our efforts at addressing legal reform this year were not enough to move Louisiana off this infamous list.”
The LLAW said in a statement released Tuesday that Louisiana ranks eighth in the United States for eight-figure-plus jury damages awards stemming from personal injury cases or wrongful deaths. Excessive civil litigation costs each state resident $965 annually in the form of a "tort tax," according to the LLAW.
“This is a huge red flag for businesses considering investing or expanding in Louisiana,” the statement says. “Such an aggressive litigation climate is effectively a 'closed for business' sign, stifling economic growth and job creation.”
The LLAW statement also expressed disappointment that Gov. Jeff Landry this year vetoed a bill that would have repealed the state’s collateral source rule, which bars the reduction of jury awards even if a plaintiff receives other compensation from independent sources, such as health insurance or medical providers.
“While some efforts were made to reform Louisiana’s broken legal system, the state fell far short of achieving the meaningful comprehensive reforms needed,” the statement says. “This is especially disappointing with a pro-business Republican governor and super-majorities in both houses (of the Legislature).”
The Judicial Hellholes report, however, does praise Louisiana for enacting a law earlier this year that addresses third-party litigation funding (TPLF). Senate Bill 355 requires foreign funders of civil litigation to file reports with the attorney general, as well as copies of their financing contracts, and the law also bars third-party funders from interfering with settlements or litigation proceedings.