Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

  • About TLR
    • Our Mission
    • Our Team
    • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
    • Special Reports
    • In the News
    • Press Releases
    • The Advocate
    • TLR Blog: For the Record
  • Get Involved
  • Contact
    • Contact Us
    • Invite a TLR Speaker
  • Donate
  • Stay Informed
In the News

Tort reform Part 1: Defining the problem of state’s high insurance rates

KTBS, March 10, 2020

SHREVEPORT, La. — If you’ve heard it once you’ve heard it a thousand times — “My car insurance rates are killing me.”

That’s a prevailing sentiment throughout Louisiana and appears to be the No. 1 topic on the minds of lawmakers heading into this legislative session that started Monday.

This is the first in a three-part series on tort reform, which is thought to be the key in getting auto insurance rates lowered. Part one defines the program and features drivers struggling to pay high premiums.

The Louisiana Association of Business and Industry is one of the strongest proponents of tort reform in the state

“This auto insurance, vehicle insurance crisis— is literally burning out of control, right now,” said Stephen Waguespack, LABI president.

In a nutshell, that sums up the problem surrounding tort reform in Louisiana — unlivable auto insurance rates.

Numbers show Louisiana’s car insurance is 58 percent higher than the national average, with an average premium of about $2,300 per vehicle which is the second highest in the nation.

“When we pay the second highest auto insurance rates in the country, it’s not by accident. It’s not because we’re the only state that has texting and driving … or bad roads. It’s because we have a flawed legal climate that’s been broken for decades,” Waguespack said.

“I think we’ve done that through legislation and creating a system that’s been labeled a judicial hellhole in this country,” said sate Rep. Thomas Pressly (R-Shreveport).

When it’s all said and done LABI concludes tort lawsuits cost every household in Louisiana more than $4,000 a year. And the upcoming legislative session is the time to set things right with the state’s legal climate…

“It absolutely beyond any doubt will lower the cost of auto insurance in Louisiana,” said state insurance Commissioner Jim Donelon.

So what needs fixing if you’re involved in a wreck?

“This is how the game works,” Waguespack said. “First of all they’re going to bring you in front of the judge they want because we have loose venue shopping rules here. We’ve got to get rid of that.”

Louisiana has a high jury trial threshold.

“The highest jury trial threshold other than Louisiana, which is $50,000, is Maryland, which is $15,000,” said Pressly.

Waguespack explains what that means is “the law has set the rules against you. They make it hard for you to bring in a jury in court.”

“There’s no question about it— the most important is the jury threshold,” Donelon said.

But there are several more things — most agree — need to be addressed.

“You can’t talk about whether insurance paid the bills. You can’t talk about whether a seat belt was used. That’s all put in place by the trial lawyers over the years to make it harder for you to have the case you want, the evidence you want, in front of the jury you want,” Waguespack said.

“We have a one-year prescriptive period. Most states have a higher prescriptive period, meaning they have longer to decide to sue,” Pressly said. “In Louisiana we have a collateral source rule.”

Which in a lawsuit means plaintiffs can virtually double dip.

“Now, the jury doesn’t even get to see or the judge what is actually paid. All they see is what is billed so it inflates costs, which can cause premiums to go up,” said state Sen. Kirk Talbot (R-Metairie).

Last year, as a state representative, Talbot sponsored House Bill 372 calling for tort reform. It got shot down in a Senate Judiciary Committee, which featured former legislators Ryan Gatti and John Milkovich.

“Those of you in the Shreveport area saw it cost two of your state senators their seats as a result of their opposition to tort reform,” Donelon said.

Talbot’s in the Senate for this new session and still going after tort reform in House Bill 9. There’s one more main area he’s targeting.

“Direct action. We’re one of only three states where you name the insurance company in the lawsuit. We want to take that back,” Talbot said.

Cleveland Auzene is the owner of Auzene Transportation, established in 2016 in Shreveport. Auzene provided critical medical transportation for isolated, elderly patients. He had to stop operations because his auto insurance rates were too high.

“The people of state want this issue fixed — and we’ve got to fix it this year,” Waguespack said.

Louisiana’s loggers and truckers have been hit hard and certainly agree.

“Over the past two to three years we have seen our insurance premiums double, triple,” said Timberland Services owner Chad Still. “Three years ago an average premium for a logging truck was $5-6,000. Now its anywhere from $9-10,000. For new businesses it’s $20-25,000.”

Still and his business partner, Jody Woodard, see the problem from a unique perspective. In addition to logging and trucking, they own Pace Insurance Managers, and say at best there are four companies that will write logging trucks in Louisiana and the rates are unaffordable.

“We have talked to people across the nation, across the South, that write in Texas and Arkansas and Mississippi and begged them to come in and do a pilot program. When you say Louisiana they basically laugh in your face (and) say, ‘We’re not coming to Louisiana,’” said Woodard, Pace Insurance Managers president.

Donelon said his task as commissioner is to make insurance affordable and available.

And that is certainly not an easy task.

Now that the problem has been defined, in part two of the series KTBS will look at some people who’ve become popular and easy scapegoats for tort reform: Louisiana’s billboard attorneys.

Follow us on Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Texans for Lawsuit Reform

7 hours ago

Texans for Lawsuit Reform

In case you missed it: Specialized business courts like the Delaware Court of Chancery can be an important addition to a state’s economic foundation. These courts quickly and expertly handle complex business litigation, freeing up other courts to handle other types of cases. Read and share: bit.ly/3y7zwnI ... See MoreSee Less

Link thumbnail

Making Business Our Business

bit.ly

Much has been written about Elon Musk—eccentric billionaire, CEO of some of the most innovative companies in the world and… future owner of Twitter? While the nuances of this deal are daily fodder...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 0
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

1 day ago

Texans for Lawsuit Reform

The federal judge who supervises multidistrict opioid litigation had ordered a certain percentage of future opioid settlements to be set aside for plaintiffs’ lawyers who have similar cases outside the MDL, diverting more settlement money away from the victims. Read & share: bit.ly/3NqcDQP ... See MoreSee Less

Link thumbnail

Multidistrict Opioid Litigation Continues to Enrich Plantiffs' Lawyers

bit.ly

Multidistrict opioid litigation is once again being used to the advantage of plaintiffs’ lawyers. This very serious issue requires a victims-first approach, not a plaintiffs’-lawyer-payday-first a...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

2 days ago

Texans for Lawsuit Reform

A month passed before Harris County courts brought in 18-year-old Corey Hodges, who violated his bond conditions 37 times. Crime Stoppers’ Andy Kahan blames the initial judge's lack of enforcement on his first bond violation back in 2015. Read and share: bit.ly/3A6vLjC ... See MoreSee Less

Link thumbnail

18-year-old charged with murder, aggravated assault violates bond conditions at least 37 times

bit.ly

HARRIS COUNTY, Texas – 18-year-old Corey Hodge could be a poster guy for Breaking Bond. “This is clearly you are breaking your bond conditions,” said Andy Kahan with Crime Stoppers. On April 17,...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 1
  • Comments: 0

Comment on Facebook


Follow us on Twitter

lawsuitreform avatarTLR@lawsuitreform·
1h 1542991625462464513

TLR is working to make the Texas legal system fair, efficient, and accessible for all. Learn more: #tortreform #stoplawsuitabuse

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

bit.ly

Reply on Twitter 1542991625462464513Retweet on Twitter 1542991625462464513Like on Twitter 1542991625462464513Twitter 1542991625462464513
lawsuitreform avatarTLR@lawsuitreform·
7h 1542901497490456578

#ICYMI: Certain business courts like the Delaware Court of Chancery can be an important addition to a state’s economic foundation. These courts quickly & expertly handle complex business litigation freeing up other courts to handle other cases. Read & RT:

Making Business Our Business

Much has been written about Elon Musk—eccentric billionaire, CEO of some of the most innovative companies in the world and… future owner of Twitte...

bit.ly

Reply on Twitter 1542901497490456578Retweet on Twitter 15429014974904565781Like on Twitter 1542901497490456578Twitter 1542901497490456578
lawsuitreform avatarTLR@lawsuitreform·
30 Jun 1542629262443905024

Fighting lawsuit abuse keeps our courts fair and our economy strong. Learn more →

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

bit.ly

Reply on Twitter 1542629262443905024Retweet on Twitter 1542629262443905024Like on Twitter 1542629262443905024Twitter 1542629262443905024

Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
  • Our Mission
  • Our Team
  • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
  • For the Record
  • Special Reports
  • In the News
  • Press Releases
  • Invite a TLR Speaker
  • Get Involved
  • Invite a TLR Speaker
  • Donate
  • Stay Informed
  • Contact TLR

Copyright © 2022 · Texans for Lawsuit Reform. All rights reserved. | Privacy Policy

Copyright © 2022 · Texans for Lawsuit Reform.
All rights reserved.
Privacy Policy