The residential and automotive insurance crisis in Louisiana has been brought on to a great extent by a legal system that inspires excessive litigation, a system that has been very good to the trial lawyer oligarchy, not so good for citizens.

What is under-reported is the detrimental impact of a system of overdependency on litigation and of historic judgements to the economic prosperity of the vast majority of Louisianians. The economy of our state, the only source of prosperity, has long underperformed that of sister southern states. One of the main reasons is because our highly litigious society flashes a bright warning to any corporation thinking about growing or moving here…”Danger-avoid Louisiana at all costs”.

Two recent cases in point.

First, there’s the massive judgement by a local jury against Chevron for claims made by a politially connected trial lawyer of coastal damage dating back almost a hundred years. Never mind that the state and Parish reaped billions in revenue from the operations or that the company was operating under extant regulations, the jury voted to stick it to the man.

Second, the astronomical jury award for a tragic accident in Lake Charles. This is a far reaching case that potentially destroys the long held relationship between labor and management we know as workers compensation, our no-fault insurance program that trial lawyers hate.

If this case stands appeal, we must expect hordes of trial lawyers pouring through the collapse of our workers compensation structure to sue every business in the state. After all, lawyers know that with little effort on their part business and insurers will, in order to avoid the risks of massive awards by friendly local juries, rush to settle no matter the facts. No longer will business be assured some degree of protection from trial lawyers seeking big bucks, no longer will labor be assured a quick and fair settlement of claims made for workplace accidents.

Trial lawyer political domination of Louisiana law and policy added to possibly their heavy political support of politicians and judges has created a lucrative industry of litigation. This is an industry very profitable to them, but one that is has helped bring on the residential and automotive insurance crisis and has diminished the economic prospects of every citizen (except of course a few trial lawyers).

The people of Louisiana must understand the growing danger to our weak economy of over reliance on unfettered litigation, most importantly the potential undermining of the workers compensation system. If the litigation epidemic isn’t controlled by rebalancing the system toward fairness to both sides, no corporation will be able to operate in our state and none will come here.