In a setback for supporters of tort reform, a Louisiana bill that would have limited general or noneconomic damages in civil court verdicts to $500,000 went down to defeat in the House Civil Law and Procedure Committee.
House Bill 526, authored by state Rep. Kellee Dickerson (R-Denham Springs), was rejected by the panel by a 4-5 vote last week. The measure would have placed a cap on what are called general damages, or those losses sustained by a plaintiff in a tort action that do not come with an exact monetary amount, such as mental anguish and loss of enjoyment of life.
The bill received support from the Louisiana Association of Business and Industry (LABI), which viewed the measure as a way to ensure fairness and consistency in the civil justice system and reassure businesses they would be less likely to face so-called “nuclear verdicts” amounting to $10 million or more.
But prior to the vote, supporters of HB 526 also stressed what the measure would not do. It would not have affected damages awards relating to economic losses such as medical expenses, lost wages and a diminished earning power in the future. In addition, the bill would have extended general damages awards to $1 million in the event claimants suffered a permanent mental injury that prevented them from enjoying a reasonable standard of living, according to the Legislature’s analysis of the bill.
Johnston von Springer, LABI’s communications manager, said state lawmakers have made progress in recent years in passing legal reforms that have helped to stabilize the state’s insurance market.
“But Louisiana is still working to climb out from under an insurance crisis and get back to even with neighboring states,” von Springer told the Louisiana Record in an email. “That work is not finished.”
He went on to explain that the purpose behind HB 526 was to bring consistency and predictability to Louisiana civil justice verdicts.
“Out-of-control, subjective damages awards continue to create uncertainty that drives up litigation and insurance costs,” von Springer said. “HB 526 represented a practical, balanced next step. Its failure to advance stalls momentum toward a more predictable legal climate for Louisiana families and job creators.”
LABI has emphasized that lawmakers have made the state more attractive to insurers in recent years and that personal auto rates have declined as a result. But in the commercial auto market, involving vehicles that transport goods, progress has not been achieved, and this puts upward pressure on the cost of consumer goods.
The Louisiana Motor Transport Association was among the supporters of the bill.
“This is a big step toward bringing more balance to Louisiana’s legal environment and moving our state in line with others,” the association said in an Instagram post. “It directly impacts trucking, your business and the future of our industry. This bill needs industry support to move forward.”
The U.S. Chamber’s Institute for Legal Reform also supported the measure.
“Louisiana is making progress on legal reform, but rising insurance costs and unpredictable damages awards still hold the state back,” the institute said on X, formerly Twitter. “HB 526 by Rep. Kellee Dickerson offers a balanced fix, capping non-economic awards while protecting real losses.”
In their work on the bill, LABI and other tort-reform supporters looked to states such as Mississippi and Oklahoma for specifics on how best to limit general damages.
