2025 Reforms Built Momentum
The Louisiana Association of Business and Industry (LABI) says lawmakers made significant progress on legal reform in 2025, but much of that momentum stalled during the 2026 legislative session. Shelby Dunbar, LABI’s director of legal reform, said the organization remains committed to pursuing additional changes aimed at improving Louisiana’s business climate and reducing insurance costs.
Dunbar said legal reform extends beyond lawsuits, arguing that a more predictable legal system encourages businesses to invest, expand, and create jobs. She added that higher commercial insurance premiums often translate into higher prices for consumers through increased costs for goods and services.
Several Priority Bills Fell Short
Among LABI’s top priorities was House Bill 526, which proposed a $500,000 cap on general damages in most civil cases while allowing exceptions for catastrophic injuries, including the loss of a limb. The proposal was modeled after reforms in Oklahoma but failed to advance out of committee.
Another measure sought greater transparency for expert witnesses. House Bill 437 would have prohibited expert witnesses from having a financial interest in the outcome of a case and aimed to reinforce their role as impartial sources of professional expertise. Although the bill cleared early legislative hurdles, it ultimately stalled before becoming law.
Litigation Financing Reform Remains a Goal
LABI also backed legislation addressing third-party litigation financing. The proposal would have limited the profits outside investors could collect from lawsuits and required attorneys to disclose litigation financing agreements to their clients within 30 days.
Dunbar said the measure would improve transparency and ensure plaintiffs remain fully informed about financial arrangements that could influence their cases. She noted that other states, including North Carolina and Ohio, have recently approved similar reforms.
Focus Shifts to the 2027 Session
With another election year approaching, LABI plans to continue working with lawmakers on legal reform proposals. Dunbar said the organization believes additional changes are necessary to improve Louisiana’s legal climate, attract business investment, and help address the state’s ongoing commercial insurance challenges.