Tort reform is a big topic of discussion lately. Louisiana legislators are trying to pass measures meant to reign in insurance costs in the state. Louisiana notoriously has the highest insurance rates in the country. Despite whether or not reforms pass, trial lawyers are not expected to sit idly by and agree to lose money. So, the question remains: will these measures be tied up in the courts and further delayed by legal fights even IF they manage to pass?
Loyola Law Professor Dane Ciolino says the state legislature has the authority to pass all sorts of legislation regulating commerce (and in this case, insurance). “It’s certainly within their legislative authority to do this. Whether it violates the constitution of the United States or the state of Louisiana is another issue, but I would be quite surprised if any of those sorts of constitutional arguments gained any sort of traction on this economic legislation,” Ciolino goes on to add.
While details of what tort reform might ultimately look like in Louisiana are still a bit unclear, the hope is for drivers and homeowners in the state to feel some financial relief. That relief might be much delayed if litigation keeps kicking the can further and further down the road. “Plaintiffs’ lawyers could certainly make the argument that perhaps some of their ‘would-be’ future clients … that would be consumers of insurance products … have been prejudiced by this legislation in some way. However, the legislature has the authority to pass this sort of regulation dealing with insurance,” Ciolino notes. While he doesn’t expect much to come of any legal battles that may arise, it’s yet to be seen how the timetable of those potential battles may impact rate payers.