LOUISIANA REFORMS

Appeal Bond Reform: HB 1819 (2003).  Limits the amount that signatories to the Master Settlement Agreement are required to pay to secure the right to appeal to $50 million.

Appeal Bond Reform: HB 1524 (2001).  Places a $150 million limit on the amount that defendants must post to obtain a bond during the appeals process.

Class Action Reform: HB 1984 (1997).  Updates Louisiana class action laws by providing objective definitions of class action terms, and detailed procedures for class action cases.

Food Liability Reform: HB 518 (2003).  Exempts from liability any manufacturer, distributor or seller of a food or nonalcoholic beverage where liability is premised upon the individual’s weight gain or obesity.  This is the first law enacted at either he state or federal level that specifically addresses liability limits for purveyors of food with respect to obesity lawsuits.

Frivolous Lawsuit Sanction: SB 679 (1988).  Allows a court to impose sanctions, such as an order to pay reasonable attorney’s fees and other expenses incurred, for the filing of a frivolous lawsuit.

Officers and Directors Liability Reform: HB 389 (1999).  Overturns the First Circuit Court of Appeals’ decision in the Theriot v. Bourg case, which allowed officers and directors of corporations to be sued for errors in judgment even when decisions were made in good faith.

Joint and Several Liability Reform: HB 21 (1996): La. Civ. Code arts 1804, 2323, 2324.  Bars application of the rule of joint and several liability in the recovery of all damages.

Jury Service Reform: HB 2008 (2003).  Requires all people to serve on juries unless they experience undue or extreme physical or financial hardship.  Allows for one automatic postponement from service. Prohibits employers from dismissing or otherwise subjecting employees to any adverse employment action for responding to a jury service summons.  Establishes a lengthy trial fund to compensate jurors up to $300 per juror, per day for trials lasting more than 10 days, starting on the eleventh day of trial.  In such circumstances, jurors would also be eligible to retroactively collect up to $100 per day from the fourth day to the tenth day of service.  The bill did not specify a financing mechanism, but tasked the Louisiana Supreme Court to develop recommendations for the Legislature to consider at some point in the future.

Limitation of Damages Against the State: SB 258 (2005). Limits all damages against the state and political subdivisions to $500,000 for personal injury and wrongful death (exclusive of property damages, medical care and related benefits and loss of earnings or loss of support, and loss of future         support).  The intention of this legislation was intended to explain the original intent of the legislature, notwithstanding the contrary interpretation of the Louisiana Supreme Court in Locket v. the State of Louisiana, Department of Transportation and Development, 2003-1767 (La. 2/25/04) 869 So.2d 97.

Maritime Jury Trial Reform: SB 832 (1999).  Repeals the prohibition against jury trials in lawsuits involving admiralty or general maritime cases.

Medical Liability Reform: Blood, Tissue, and Transplant Liability: SB 597 (1999).  Limits liability and provides for a statute of limitations for healthcare providers in cases involving blood transfusions, tissue products or the transplant of any human organ.

Medical Liability Reform: Certificate of Merit: HB 502 (1991).  Requires a licensed psychologist's or psychiatrist's diagnosis of any mental stress injuries that are not manifested by a physical injury.

Medical Liability Reform: Damages Reform: La. Rev. Stat. Ann. §40:1299.42.  Limits total damages in medical liability cases to $500,000, excluding future medical care.  The statute setting a $500,000 limit on general damages in medical liability cases did not violate the equal protection provisions of the State or Federal Constitutions.  Butler v. Flint Goodrich Hospital of Dillard University, 607 So. 2d 517 (La. 1989).

Medical Liability Reform: Good Samaritan Protection: SB 507 (1999).  Protects healthcare providers from liability for their voluntary services at community health clinics or community pharmacies.

Medical Liability Reform: Medical Monitoring: HB 1784 (1999).  Overturns the Supreme Court’s decision in Bourgeois v. Green, which allowed someone exposed to a “hazardous” substance to recover expenses for medical monitoring even if there is no evidence of injury.  Louisiana’s statute abolishing medical monitoring causes of action cannot be applied retroactively because it would deprive plaintiffs of a previously vested right.  Bourgeois v. A.P. Green Industries, Inc., 2001 WL 316005 (La. Apr. 3, 2001); Crooks v. Metropolitan Life Insurance Co., 2001 WL 40567 (La. App. Jan. 17, 2001).

Medical Liability Reform: Periodic Payment of Future Damages: La. Rev. Stat. Ann. § 40: 1299.44.  Permits the periodic payment of future medical expenses to be paid out of a patient compensation fund.

Prejudgment Interest Rate Reform: (1997).  Sets prejudgment interest rates at the average Treasury Bill rate for 52 weeks plus 2%.  Provided varying rates of prejudgment interest for actions pending or filed during the last 10 years.

Prejudgment Interest Rate Reform: HB 1690 (1987).  Sets prejudgment interest rates at the prime rate plus 1% with a floor of 7% and a cap of 14%.

Product Liability Reform: SB 684 (1988).  Provides that a product may be unreasonably dangerous only because of one or more of the following characteristics: (a) defective construction or composition; (b) defective design; (c) failure to warn or inadequate warning; or (d) nonconformity with an express warranty.  Provides that a manufacturer of a product shall not be liable for damage proximately caused by a characteristic of the product's design if the manufacturer proves that at the time the product left his control: (a) he did not know and, in light of then-existing reasonably available scientific and technological knowledge, could not have known of the design characteristic that caused the damage; (b) he did not know and, in light of then-existing reasonable available scientific and technological knowledge, could not have known of the alternative design identified by the claimant; or (c) the alternative design identified by the claimant was not feasible, in light of then-existing reasonably available scientific and technological knowledge or then-existing economic practicality.

Punitive Damages Reform: HB 20 (1996).  Repeals the statute that authorized punitive damages to be awarded for the wrongful handling of hazardous substances.  (The Louisiana courts had established precedents substantially expanding liability based upon the repealed statute.)

Strict Liability Reform: HB 18 (1996).  Repeals the judicially-created strict liability doctrine exposing property owners to liability without proof of fault.  Returns Louisiana to a negligence standard. 

Venue Reform: HB 858 (1999).  Allows a district court judge to dismiss a civil lawsuit upon a defendant’s request when the act giving rise to the suit occurred outside the territorial limits of the state.