$745 Million Verdict in Coastal Litigation Exemplifies Louisiana’s ‘Judicial Hellhole®’ Status

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Excessive Litigation Costs Residents $1,011 Annually and Jeopardizes 40,000 Jobs Each Year

On Friday, a Louisiana jury slapped Chevron with a $745 million verdict for alleged coastal damages in Plaquemines Parish, exemplifying the state’s status as a perennial “Judicial Hellhole®.”  

“This $745 million verdict is just the latest example of the culture of lawsuit abuse that plagues Louisiana’s courts,” said Lauren Sheets Jarrell, the American Tort Reform Association’s vice president and counsel for civil justice policy.

The decision out of Louisiana’s 25th Judicial District Court is part of the state’s decade-long coastal litigation saga, which has targeted more than 200 energy companies and threatens the state’s economic stability. The lawsuit against Chevron is the first case to go to a jury trial of the more than 40 filed by Louisiana parishes against energy companies since 2013. The protracted legal battle is due in part to whether these cases belong in state or federal courts.

“These lawsuits claim to address coastal restoration, but they fail to provide meaningful solutions, instead driving away business, stifling economic growth, and jeopardizing thousands of jobs across Louisiana,” Sheets Jarrell said.

ATRA notes the documented impacts of excessive litigation costs in Louisiana include a $1,011 annual “tort tax” paid by every resident in the state, along with a loss of nearly 40,000 jobs per year.

“Louisiana needs real solutions for coastal restoration—not endless litigation that enriches trial lawyers at the expense of workers and communities,” Sheets Jarrell said.

Louisiana is ranked the tenth-worst Judicial Hellhole® in the country in the American Tort Reform Foundation’s annual report, available at JudicialHellholes.org.

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