A study by the Perryman Group reveals that Louisiana’s civil court system is significantly harming the state’s economy. Louisiana Lawsuit Abuse Watch Executive Director Lana Venable says excessive litigation has led to nearly 40-thousand lost jobs, $2.9 billion in lost personal income, and over $240 million in annual state revenue losses.
“We’ve seen as a result $9 million lost in expenditures to businesses in Louisiana. So, that’s money that these consumers are then not able to put back into the local economy and into their local businesses and retail establishments.”
Venable says the impact spans sectors like manufacturing, retail, and finance. The report estimates a “tort tax” exceeding $1,000 per resident annually.
“We’re seeing almost double that with every person in the Greater New Orleans area paying more than $2,00 per person in “hidden tort” fees when we see these impacts passed down in the increased cost of goods and services that our families are paying.”
The study urges comprehensive tort reform, citing other states’ successes in boosting economic performance and job creation through such measures. Venable says without reform, Louisiana risks continued economic decline.
“We need to pass these refoms. Not watered down version. We really need this comprehensive far reaching legal reform, and it won’t happen overnight but we believe that with these reforms we will begin to see these numbers change.”
