A news item in the New Orleans Advocate of December 27 has republican state representative Sherman Mack saying, "CIVIL LITIGATION CHANGES WILL BE THE BIGGEST PUBLIC TOPIC YOU'RE GOINT TO HEAR MOST ABOUT IN THE NEXT LEGISLATIVE SESSION." Mack and his republican lawmakers want to limit damages awarded in car accident lawsuits, alleging Louisiana's legal climate encourages people in car accidents to sue insurance companies which drive up insurance rates. And if tort reform is successful auto insurance rates would come down but offered no proof of such claim.
Tort reform is one of the many "fake news" claims by republicans to benefit the business community at the expense of those injured. Republicans are in favor of a two class society, one wealthy and the bottom tier. They do not like the middle class. The republican party has also sought tort reform for medical malpractice suits claiming those suits run up the cost of medical premiums and the cost of medical care. Such tort reform never reduced premiums or the cost of medical care.
For those who want the facts on tort reform to control suits one needs to read an article by Chip Wagar, Managing Partner of Chopin, Wagar, Richard and Kutcher, LLP published in the Jefferson Life Journal, spring issue of 2010. He outlines the facts that the outcome of medical malpractice reform caps resulted in larger profits for the insurance companies and not lower cost or rates for those insured. The medical malpractice insurance industry has seen a 47% increase in profitability in the last 10 years and that the only effect of caps on damages is increase profits for the industry and that states with medical malpractice caps do not have lower physician premiums or health care premiums. In other words the savings do not flow to the injured or those who pay the cost of medical care.
So if any one believes tort reform for auto damages are going to bring the cost of auto insurance down for the people, think again. The republican party and the business community can never be satisfied by their thirst for wealth at the expense of the middle class. Tax cuts that benefit the wealthy and the business community just are not enough for their greed.
Note: At the end of the Advocate article, the insurance industry said the reasons insurance rates are so high in Louisiana falls to the fact that too many drivers are not insured, bad roads and etc. They never mentioned Lawsuits. And the republicans never mention that the insurance companies are being advised by their own attorneys the money value to put on a settled claim. But they do not like the injured party to seek advise of an attorney.
This commentary written by Joe Lorio
