2024 Judicial Hellholes Report...LLAW Statement in Response to Louisiana's No.10 Ranking
December 10, 2024 (Baton Rouge, LA) – With holiday preparations in full swing, we are reminded that no one wants to be on the “bad” list this time of year. When it comes to our legal climate, however, Louisiana has managed to do just that – even after significant attempts at comprehensive legal reform this year. Continuing its streak with a fifteenth appearance on the American Tort Reform Foundation’s infamous Judicial Hellholes® list at No. 10 this year, Louisiana is often considered one of the worst civil justice systems in the country.
The annual report ranking the most unjust local courts and state civil justice systems in the country was released earlier today.
The disappointing highlights include:
• Louisiana's courts have become a hotbed for “nuclear verdicts,” exorbitant jury awards typically in excess of $10 million. Louisiana ranks eighth nationally for these massive personal injury and wrongful death awards. This is a huge red flag for businesses considering investing or expanding
in Louisiana. Such an aggressive litigation climate is effectively a 'closed for business' sign, stifling economic growth and job creation.
• Coastal lawsuits continue to drag on, threatening billions in damages that target the state's job-creating energy industry, while failing to provide any actual help for coastal restoration despite a 2022 'landmark settlement' in the bellwether Freeport McMoRan case.
• Fallout continues from insurance lawsuit schemes targeting hurricane victims and the state’s vital trucking industry. The well-documented 'Operation Sideswipe' scheme has led to more than 60 indictments and even a murder charge, highlighting the urgent need for reform to
combat lawsuit abuse. Going well beyond scamming insurance companies – these fraudulent lawsuits are a direct assault on honest Louisiana drivers. Every fraudulent claim contributes to the state's sky-high auto insurance rates, making it harder for families to afford basic transportation.
• Gov. Landry vetoed legislation to repeal the collateral source rule, even after receiving strong bi-partisan support in both the House and Senate. While some efforts were made to reform Louisiana’s broken legal system, the state fell far short of achieving the meaningful comprehensive reforms needed. This is especially disappointing with a pro-business Republican Governor and super-majorities in both houses.
These kinds of abuses cost every single Louisianian, and we are literally paying the price via a hidden annual "tort tax" of nearly $1,000 per resident. Additionally, more than 40,500 jobs are lost annually statewide, making it difficult for many hardworking residents to just get by. Perhaps the best illustration of this is the availability and affordability of auto insurance. (Source: 2024 Economic Benefits of Tort Reform)
The state’s Judicial Hellhole® status is more than just an undesirable label. Our flawed civil justice system comes at a cost paid by all Louisianans in the form of lost jobs, higher prices for goods and services, and disincentives for business growth. Louisiana is poised to realize many new opportunities ahead, but we cannot fully realize our state’s potential without addressing this systemic abuse. There has never been a more opportune time -- Louisiana simply can’t afford to wait any longer for comprehensive legal reform.
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