Retroactive Changes Would Expose Businesses to New Liabilities, Cost Jobs, Damage Business Climate
The American Tort Reform Association today expressed deep concern regarding problematic amendments made to Senate Bill 244 by Gov. Jeff Landry.
The amendments, written personally by Gov. Landry, would retroactively and prospectively prohibit indemnification in oil and gas transactions – a move that threatens to further fuel Louisiana’s lawsuit abuse crisis.
“Louisiana already ranks among the nation’s worst Judicial Hellholes® because of endless coastal litigation and legacy lawsuits targeting the energy sector,” said Tiger Joyce, president of the American Tort Reform Association. “Gov. Landry’s antagonistic amendment would open the door to even more abusive lawsuits and further undermine the stability of one of the state’s most vital industries.”
ATRA notes that the retroactive nature of the changes are especially alarming. If enacted, it would upend long-standing contracts and expose companies to new liabilities for actions that occurred years – or even decades – ago.
Residents pay a “tort tax” of $1,011 each year — more than $2,000 per person in New Orleans and $1,027 in Baton Rouge.
Nearly 40,000 jobs are lost annually due to lawsuit abuse.
The state’s GDP takes a $4.6 billion hit every year.
“This kind of legal uncertainty discourages investment, threatens jobs, and further damages Louisiana’s reputation as a place to do business,” Joyce said. “The governor has to understand that these amendments would only cause further litigation and economic harm.”
The House is scheduled to discuss the bill on June 8, with the full legislature scheduled to adjourn June 12.
“Gov. Landry is not only potentially opening the floodgates for litigation, but is further cementing his own reputation as an ally of the trial bar and billboard attorneys responsible for the state’s overwhelming culture of lawsuit abuse,” Joyce said.
ATRA urges lawmakers to reject the governor’s last-minute changes and focus on reforms to re-balance Louisiana’s civil justice system.
