Bayou Balance: Navigating Louisiana’s New Tort Reform Landscape
Louisiana Tort Reform Update 2025
Although Louisiana’s rate of motor vehicle accidents is only marginally higher than the national average, the number of individuals claiming injuries from those accidents is nearly 200% higher than the national average.[1] This is a clear indication that tort reform was absolutely necessary in Louisiana. Governor Landry has gone on record as saying it was his goal to mitigate claims made by what he characterizes as “frivolous” drivers and their attorneys, thereby safeguarding the state’s broader interests.
On May 28, 2025, Governor Landry signed into law several auto insurance-related bills. This represents the largest tort reform in the history of Louisiana. This comprehensive effort impacts several key legal principles, including “the Housley Presumption”, “No Play, No Pay”, and “Comparative Fault”. Additionally, it also introduces a discount for commercial vehicles equipped with dash cameras.
This legislation introduces additional barriers for individuals involved in motor vehicle accidents who wish to pursue litigation. These changes are expected to lead to a sharp decline in the number of injury claims and lawsuits. Please see below for a detailed analysis of each bill.
Housley Presumption
Under the Housley Presumption,[2] if the plaintiff was in good health prior to an accident and symptoms manifested thereafter, it is presumed that the accident caused the injury – provided there exists reasonable medical evidence establishing a connection. This presumption historically benefitted injured drivers, allowing them to claim damages without the necessity to establish a direct causal link between the accident and their injury.
House Bill 450[3] significantly alters this standard. It now requires plaintiffs to establish a clear causal connection between the accident and their injuries. Specifically, it dictates that it cannot be assumed that a plaintiff’s illness, injury, or condition is a consequence of the accident unless they can demonstrate that the injuries actually occurred during the accident. This amendment effectively eliminates the Housley Presumption, compelling plaintiffs to provide definitive evidence linking their injuries directly to the accident. The bill has an effective date of May 28, 2025 and it applies prospectively only – as such it only applies to cases/accident from the effective date forward.
No Pay, No Play
House Bill 434[4] modifies La. R.S. 32:866(A)(1) commonly referred to as as the “No Pay, No Play” statute. Under this revised law, uninsured drivers are barred from recovering the first $100,000 of any bodily injury or property damage claim resulting from a car accident. This is a substantial increase from the previous limitation to recovery, which was the first $15,000 of a bodily injury claim and $25,000 of a property damage claim. Additionally, under this new bill, if an uninsured driver is awarded $100,000 or less for a bodily injury claim, they will bear the responsibility for all court costs incurred by all parties involved, irrespective of fault.
This bill also ensures that insurers retain their rights to pursue subrogation claims exceeding the $100,000 threshold. The bill’s title implies that drivers must maintain valid car insurance to access specific benefits, promoting compliance with state insurance laws. This legislation is expected to encourage residents to procure car insurance before its implementation on August 1, 2025. The language of the amended statute does not explicitly identify whether the statute has prospective or retroactive application
Comparative Fault
Louisiana has always historically followed a comparative fault system, allowing that plaintiffs who were found to be partially at fault for their injuries were still eligible to recover damages, with any reward reduced in proportion by their degree of negligence. For instance, if a person was found to be 30% at fault, they were able to collect 70% of the damage award.
House Bill 431[5] amends Civil Code Article 2323(A) to change that standard. This new law bar drivers found to be at least 51% responsible for an accident from receiving any damage awards. Conversely, drivers found to be under the 51% threshold may still recover damages, but said damages will be proportionally reduced based on their percentage of fault. The language of the amended statute does not explicitly identify whether the statute has prospective or retroactive application. This law is set to take effect on January 1, 2026.
Dash Cam Discount
House Bill 549[6] mandates that insurance companies provide commercial trucking companies with a discount for installing and maintaining functional dashboard cameras and telematics systems on their commercial vehicles. To qualify for the discount, the policyholder shall ensure the dashboard camera and telematics system both comply with all of the following:
- Be installed and operational at the time of policy issuance or renewal.
- Meet minimum technical standards as prescribed by the commissioner, including compatibility between the dashboard camera and telematics system for data verification.
- Remain in continuous use during the policy term, subject to verification by the insurer.
Additionally, the policyholder shall provide proof of installation and operation, such as a certificate from a licensed vendor or telematics data report, upon the request of the insurer.
This legislation aims to improve public safety, decrease instances of insurance fraud, and reduce claims costs by promoting these technologies. However, it is essential to note that the discount applies solely to liability insurance premiums and does not extend to comprehensive or collision coverage unless specified otherwise by the insurer.
These changes are expected to bring significant shifts to Louisiana’s auto insurance landscape. Ideally, they will lead to lower insurance premiums, an increase in the number of insured drivers on the road, and a reduction in fraudulent injury claims and frivolous lawsuits. We will continue to monitor the long-term effects of these reforms on the state. This has an effective date of January 1, 2026.
To learn more about this latest tort reform and how it might impact you and your business, reach out to Misha Logan-Johnson or Lou Bonnaffons.
[1] https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf?utm_medium=email&_hsenc=p2ANqtz–VqkX-AGLlhSiVYuoF6byYsxbVI-F7QS7hHWCxGCkcA8mcbUBzc0cAooK9W9HBymWxiXfPghIXOHfMGj9MCzkHXCkiHBQ2wy3ov1EPkfJdeY4dIFU&_hsmi=364315114&utm_content=364315114&utm_source=hs_email
[2] Housley v. Cerise, 579 So. 2d 973 (La. 1991).
[3] https://legis.la.gov/legis/BillInfo.aspx?i=248457
[4] https://www.legis.la.gov/legis/BillInfo.aspx?i=248441
