Louisiana tort reform moves from paper to pavement
Louisiana’s latest round of tort reform is shifting from Capitol talk to courtroom reality – and the trucking industry is watching closely.
The Owner-Operator Independent Drivers Association supports changes to civil liability laws to curb lawsuit abuse. OOIDA says plaintiff attorneys are using increasingly aggressive tactics to go after truck drivers, even when the drivers have little or no fault in a crash.
Phantom damages
The first new law targets “phantom” damages.
Louisiana law has limited jurors to hearing the total amount billed for medical care, not what the plaintiff actually paid. This has led to higher settlements and jury awards.
Starting Jan. 1, juries will instead see the amount insurers actually paid for medical treatment in personal injury cases.
Plaintiffs will still be able to recover co-pays and other out-of-pocket expenses.
Supporters, which include the trucking industry, said the change ensures fair compensation based on the real cost of necessary medical care.
Gov. Jeff Landry said the law adds transparency to the courtroom.
“This will once and for all prevent inflated, phantom charges but also protect the legitimate rights of those who are legitimately injured,” Landry said.
Pure comparative fault
Another new law of interest to the trucking industry changes how fault is handled in injury cases.
Pure comparative fault allows a plaintiff’s right to damages to be reduced by the plaintiff’s own liability. Plaintiffs are not barred from recovery.
Rep. Emily Chenevert, R-Baton Rouge, said this means someone who is 99% at fault can still recover money from someone who is 1% at fault.
Starting Jan. 1, that will change.
The new law moves Louisiana to a modified fault system. Anyone found to be 51% or more at fault in a crash will no longer be able to collect damages.
Insurance discount
Also starting Jan. 1, a new trucking law covers the use of dashboard cameras.
Supporters say dash cams can improve safety, reduce insurance fraud, and lower claim costs.
Under the law, insurers that sell commercial vehicle insurance in Louisiana must offer a discount to policyholders who use dash cams or telematics systems.
Drivers must show proof that the equipment is installed and working. The discount would apply when a policy is issued or renewed.
Reforms already in effect
Several new trucking-related laws are already in effect. One change strengthens the state’s “no pay, no play” law.
The update raises the recovery threshold for uninsured drivers.
Uninsured motorists are now prohibited from recovering the first $100,000 of bodily injury and property damage claims. Louisiana law previously limited bodily injury to $15,000. The state has a $25,000 limit on property damage.
Supporters say the change will help lower insurance rates.
Another new law limits damages for people described as “unauthorized aliens.” These individuals can no longer recover general damages or past and future wages after a vehicle crash. General damages include pain and suffering and other non-economic losses.
They may still recover certain special damages. Such damages include medical bills, lost wages, and property damage.
One more change of interest to the trucking industry cancels the Housley Presumption. That rule assumed an injury was caused by a crash even without proof and required the defense to disprove it.
Supporters say the change restores fairness by requiring evidence to link injuries to a crash. They add that it will help reduce inflated lawsuits and lower insurance costs by placing the burden of proof back on plaintiffs. LL