Tort Reform
HB 372
by Rep. Kirk Talbot, R-River Ridge, would have revamped the state’s jury system as a means to lowering auto insurance rates was involuntarily deferred Tuesday by a Senate committee, ending hopes for a proposal described by Louisiana Association of Business and Industry as “the bill of the session.” It was the fourth time such a proposal failed before the legislature, and it was also the final shot of the term for supporters.
Senate Judiciary A Committee, which is stacked heavily with plaintiff’s lawyers, was the last hearing for the bill that would have allowed victims of car wrecks to file lawsuits within two years of their accidents, rather than one year. The measure would have likewise reduced the state’s jury trial threshold, among other mechanisms. Stephen Waguespack, president of the LABI, put the force of his organization behind Talbot’s bill.
Before the regular session even convened, Waguespack predicted that
HB 372
would emerge as one of the more compelling stories of this policy making gathering. “It is no longer just an important issue to a few specific industries, it has become the most universally supported topic in Louisiana,” Waguespack said. “Truckers, farmers, timber and small businesses are now just as tired of predatory lawsuits as the energy industry has been for years.” Before he made the motion to involuntarily defer the bill, Sen. Jay Luneau, D-Alexandria, said consumers would have less of an opportunity to sue insurance companies under the bill, and that the legislation’s intended impact would turn out to be the opposite. “Everyone believed this bill would reduce rates,” he said. “I disagree with that.”
Watered down tort reform
The House Judiciary Committee advanced legislation Thursday morning that would bring new scrutiny and oversight to the promotional practices employed by law firms.
SCR 37
by Senate President Pro-Tem Gerald Long, R-Natchitoches, would have both the state Supreme Court and Louisiana Bar Association study the existing advertising rules for attorneys and consider drafting new guidelines. According to Sen. Long, it has been ten years since the current regulations were last amended; he has expressed frustration with the proliferation of legal advertising, pointing out that one Louisiana law firm spent over $12 million on promotional campaigns last year. He also stated that he believes that many ads are misleading to potential clients. "It is disingenuous to tell somebody ‘I got this much and you can get it too,’" he said.
Since
SCR 37
is a resolution instead of a bill, it now only needs approval from the full House to go into effect; it bypasses the desk of Gov. Edwards.
Corporate franchise tax phase-out sputters
Just like most all of the other tax reform-oriented bills filed this session,
HB 31
by Rep. Phillip Devillier, R-Eunice, and
HB 523
by Rep. Barry Ivey, R-Central, would phase out the corporate franchise tax, are pretty much dead now. The administration does not appear eager to give up any revenue whatsoever and many tax bills just haven’t really seen the light of day. The next opportunity for dramatic tax reform will be the 2021 regular session unless a special session is called next year.
