Bills that insurance companies and business interests say would address Louisiana’s car insurance crisis advanced their first step in the legislative process Tuesday.
The measures approved by the House Civil Law and Procedure Committee would “level the playing field,” according to state representatives who blame Louisiana’s high car insurance rates on a legal system that they say encourages too many lawsuits and big payouts to people injured in wrecks.
The committee approved the bills Tuesday on party-line votes with Republicans flexing their legislative majority.
The trial lawyer lobby made no public effort to oppose the bills, which will be heard on the House floor next week as part of a strategy to get them to the Senate early in the legislative session.
House members say privately that they believe the trial lawyer lobby has greater influence in the Senate and will try to kill or water down the bills there.
Gov. Jeff Landry when he kicked off the two-month regular legislative session that he favors a “balanced” approach that benefits neither side over the other.
That view has sparked consternation among the Republican House members pushing the anti-trial lawyer bills in an alliance with Insurance Commissioner Tim Temple.
Landry and Temple set aside their differences – but didn’t talk to each other – during a press conference Tuesday on the Capitol steps where they endorsed a bill to allow drivers to use their cell phones only hands free. Rep. Brian Glorioso, R-Slidell, is the sponsor of the measure, .
Landry, Temple, Glorioso and state Sen. Patrick McMath, R-Covington, who has sponsored the legislation in previous years, all said that getting fewer people to text and watch videos while driving will lead to fewer accidents. That in turn, they said, will reduce car insurance rates.
The action on car insurance then moved inside the State Capitol building as the Civil Law Committee debated and passed several major bills over four hours.
The Democratic legislators on the committee didn’t win over any of the Republicans after questioning the legislative sponsors or insurance industry representatives who testified in favor of the bills.
“It actually went better than I thought,” Rep. Nicholas Muscarello, R-Hammond, the committee chair, said as the hearing ended.
Landry is supporting one contentious measure, , by Glorioso, who told the committee that it would allow defendants to tell jurors how much people injured in wrecks actually pay in medical bills. Under current law, jurors hear the total amount billed, regardless of what the plaintiff paid.
Glorioso said lower payouts for medical bills would lead to reduced car insurance bills.
“Let’s unblindfold the jury,” Glorioso said.
Rep. Chad Brown, D-Plaquemine, noted that the Legislature has passed several anti-trial lawyer measures in recent years that were supposed to lower rates.
“But we’re still among the highest in the country,” Brown said.
The committee approved the measure on an 11-3 vote, similar to the other bills.
Another controversial measure approved Tuesday is by Rep. Emily Chenevert, R-Baton Rouge.
HB431 would bar a driver responsible for at least 51% of an accident from receiving a damage award to cover his or her injuries. Under current law, the driver responsible for, say, 51% of the accident can collect a payment equal to 49% of the overall damage award.
Sidney Degan, a New Orleans attorney, told committee members that current law encourages lawyers to sue even when the driver is largely at fault because insurance companies would rather settle than face a lawsuit that drags out and runs up big legal fees.
Landry has not said publicly whether he supports HB431.
The committee also approved by Rep. Jason DeWitt, R-Alexandria, which would reduce the payout to an injured driver who does not have car insurance. Landry supports the bill.
