Has Senate Judiciary A Committee Killed Louisiana’s Best Chance for Auto Insurance Relief?
Hardworking families and small businesses continue to wait for relief from Louisiana's sky-high auto insurance rates because some politicians in Swampland continue to choose the status quo over meaningful change. Despite a mandate from voters for change—especially on legal and insurance policy—the plaintiffs' attorneys seem to have maintained their grip on some corners of the Louisiana Legislature.
After over a month of inaction, the LA Senate Committee on Judiciary A finally took up several major reform bills over the last couple of weeks, which sought to improve the state's auto insurance market. However, after two lengthy hearings, the Committee refused to vote.
The bills are now parked in the Jud. A Committee.
Of particular concern is the Committee's inaction on HB24 and HB336. Similar versions of both bills were passed by the legislature last year, only to be vetoed by former Democratic Governor John Bel Edwards, a trial lawyer.
The fate of these much-needed measures rests in the hands of seven senators.
Some background on these bills:
HB24, sponsored by Rep. Michael Melerine (District 6- Shreveport), removes a unique Louisiana judicial doctrine called the Housley Presumption. Under this judicially created policy (not law), plaintiffs in personal injury cases do not have to prove accident-injury causation; instead, they only have to demonstrate a "causal connection" between the accident and the alleged subsequent injury. Put simply, plaintiffs are aided in their burden of proving causation by the Housley Presumption. This makes Louisiana an outlier compared to most other states, and it leads to inflated claims payments, ultimately driving up the cost of insurance for us all.
Meanwhile, HB336 is a commonsense disclosure bill brought by Rep. Emily Chenevert (District 66—Baton Rouge). It seeks to shed light on the growing use of third-party litigation financing agreements by plaintiffs' attorneys. These secret financing agreements allow hedge funds and hostile foreign governments, such as China and Russia, to invest in American litigation and represent their interests in U.S. courts.
Since the lawsuit financing industry is largely unregulated and the disclosure of basic information is not required under existing laws, the identities of these third-party financiers and the extent of their influence over key legal decisions remain mostly unknown. This shady practice undermines our court system and provokes frivolous lawsuits that drive up insurance costs. What's worse, if left unchecked, it also has the potential to undermine our economic and national security.
So the question remains: will the Senate respond to their constituents and move these bills forward, or will the Swamp halt progress once again?
We'll keep up the Watch: stay tuned.