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HB 526 Left in Committee Despite Need for Relief
On Tuesday morning, HB 526 by Rep. Kellee Hennessy Dickerson (R-Denham Springs) failed to advance to the House floor on a narrow 4–5 vote—a disappointing outcome that leaves critical reform on the table and an important opportunity for continued legal reform progress unrealized this session. LABI would like to thank the four committee members who voted in favor of advancing this rational piece of legislation: Reps. Carlson, Chenevert, Edmonston and Melerine.
The goal of HB 526 was simple: bring consistency and predictability to Louisiana’s civil justice system. Out-of-control, subjective damage awards continue to create uncertainty that drives up litigation and insurance costs.
Testifying in support of the bill, LABI’s Shelby Dunbar set the record straight on what the bill does and does not do.
“HB 526 doesn’t eliminate accountability, it restores balance. People will still be fully compensated for real, tangible losses—medical bills, lost wages, property damage. But putting reasonable guardrails on subjective general damages helps curb the kind of unpredictable, outsized verdicts that are driving commercial insurance costs to unsustainable levels.”
Testimony centered on the need to rein in unpredictable damage awards while preserving accountability, with backers framing the measure as a common-sense step to stabilize Louisiana’s legal climate.
Rep. Dickerson underscored the core problem: “Right now in Louisiana, the same case can produce very different results depending on where it is tried. That unpredictability drives up settlements, increases litigation costs and forces insurers to price for worst-case scenarios. Those costs fall on families, small businesses and everyday policyholders.”
Additionally, business leaders came before the Committee to make clear the real-world stakes of runaway verdicts.
“We are best in class at [health and safety] and proven year in, year out to be nationally elite in this regard,” Andy Lopez of Cajun Industries, a valued LABI member testified. “The unfortunate thing is we are one tragic accident and one verdict away from an extinction event in our current landscape. Homegrown Louisiana businesses deserve better than that.”
>>> Watch Andy’s testimony HERE <<<
Traveling to Louisiana to testify in support of HB 526 was Roger Gibboni of the U.S. Chamber of Commerce’s Institute for Legal Reform. ILR has taken a lead role in confronting nuclear verdicts all across the country. A forthcoming ILR study estimates Louisiana households could see $835 in savings per household through a cap on general damages. Gibboni warned against slowing momentum.
“Louisiana has made great strides in recent years enacting thoughtful legal reforms that not only protect Louisianans and this state’s court systems but send a strong signal that Louisiana is open for business and won’t let plaintiff’s lawyers dictate its economic future. Backsliding caused by headlines describing general damage awards that are 10 times or even more than economic damage awards will significantly undermine that progress. This has real-world costs.”
>>> Watch Roger’s testimony HERE <<<
It is true the Legislature has taken meaningful steps on insurance and legal reform in recent years, and those efforts deserve recognition. But Louisiana is still working to climb out from under an insurance crisis and get back to even with neighboring states. That work is not finished.
HB 526 represented a practical, balanced next step. Its failure to advance stalls momentum toward a more predictable legal climate for Louisiana families and job creators.
Also falling short in committee was HB 173 by Dennis Bamburg (R–Bossier City), which was narrowly defeated on a 4–5 vote. The measure would have prohibited drivers involved in an accident from recovering damages if they failed to comply with the state’s mandatory insurance law by allowing their coverage to lapse for more than 30 days—an effort aimed at reinforcing personal responsibility and reducing costs driven by uninsured motorists. This would have built upon the ‘No Pay, No Play’ expansion approved by the Legislature last year.
LABI’s commitment to meaningful legal reform and a more competitive Louisiana remains strong and we will continue pressing forward. It is critical that our members—Louisiana’s job creators—make their voices heard and ensure legislators understand just how high the stakes truly are.