SB 231 ADDRESSES LAWSUIT ABUSE & WILL GROW LOUISIANA’S ECONOMY
Congratulations to Louisiana State Representatives Emily Chenevert, Jason DeWitt, and Michael Melerine for their leadership in sponsoring three important bills, HB 431, HB 434, and HB 450, which passed in this legislative session and were signed into law by Governor Jeff Landry.
These bills will help business owners who have been facing higher insurance costs and declining margins. Specifically, these bills will discourage frivolous lawsuits and stabilize our insurance markets. For too long, Louisiana’s highly litigious environment has raised costs for citizens and employers and discouraged new businesses from even considering our state. Even worse, over the last few decades, innumerable homegrown businesses have left Louisiana due to our culture of runaway litigation, which punishes entrepreneurship instead of rewarding it.
Thankfully, these three bills represent verifiable legal reform and will curb lawsuit abuse, while providing tangible progress in making Louisiana a more business friendly state. Legislators should build on this progress by passing another important reform bill, SB 231, that is important for the future of Louisiana.
A 2022 study indicated that Louisiana faced almost $8 billion in tort costs annually, totaling 2.65% of the state’s overall GDP, the third worst ranking in the nation. These costs translate into higher premiums for consumers, lower wages for employees and limited opportunities for business owners to expand. Not surprisingly, states with better environments for business have been growing, while the population of Louisiana has been stagnant over the last five years.
A sure way to grow our economy is to keep our insurance premiums in check. This can be accomplished by reforming our out-of-control legal system. Unfortunately, Louisiana business owners face sky-high insurance premiums, made worse by the impact of outrageous civil case judgments.
Of course, the legal system in Louisiana must remain accessible to those with legitimate claims; however, frivolous lawsuits, which overwhelm court dockets and divert economic resources, must be discouraged. For example, lawsuit abuse in Louisiana costs the average household almost $4,400 per year. These are funds which should be dedicated to important household expenses, such as utilities, mortgages, automobile loans, as well as essentials such as groceries and education.
SB 231, sponsored by State Senator Mike Reese (R-Leesville), will help Louisiana move towards a fairer legal system. It places limits on medical malpractice lawsuits but allows plaintiffs to be fairly compensated for legitimate treatment and care. Victims must be compensated for reasonable and necessary medical care, but lawsuit abusers must not be rewarded with inflated verdicts and phantom damages.
This legislation also benefits doctors, who currently operate under the constant threat of crippling lawsuits. The plethora of lawsuits also burdens our court system and undoubtedly increases insurance costs, damaging Louisiana’s business climate and hurting both owners and employees.
The legislation also restores Louisiana’s fault system for automobile accidents to the same model used in 38 other states. Thus, drivers found to be equally or more at fault than defendants in automobile accidents cannot sue others to pay for the associated damages.
These reforms are especially important because the average cost of premium automobile insurance in Louisiana is an astounding $3,953 per year, which is 49% higher than the national average. While automobile insurance costs are much higher in Louisiana, the state’s average salary of $53,435 is much lower, only 80% of the national average of $66,622.
Due to this disparity, action must be taken to reduce these costs and provide relief to the citizens and business community of Louisiana. SB 231 addresses the tort and lawsuit abuse which is costing ordinary Louisianans billions of dollars.
I encourage all Louisiana legislators to support SB 231; it is vital legislation.
Jeff Crouere is a native New Orleanian and his award-winning program, “Ringside Politics,” airs Saturdays from Noon until 1 p.m. CT nationally on Real America's Voice TV Network & AmericasVoice.News and weekdays from 7-9 a.m. & 6-7 p.m. CT on WGSO 990-AM & Wgso.com. He is a political columnist, the author of America's Last Chance and provides regular commentaries on the Jeff Crouere YouTube channel and on Crouere.net. For more information, email him at jcrouere@gmail.com