Data released Tuesday from the tort reform group Louisiana Lawsuit Abuse Watch says excessive civil court costs led to the loss of nearly 50,000 jobs in Louisiana and $3 billion in personal income losses.
The group also says excessive lawsuits are costing Louisiana residents $1,200 each in the form of what the group calls a “tort tax,” as well as state government losses of $270 million and local government losses of $225 million. The state’s legal climate also cost the state’s gross domestic product approximately $5 billion.
According to the data, both of Louisiana’s two largest metropolitan areas—Baton Rouge and New Orleans—were hit hard economically by the state’s tort system.
Baton Rouge residents lost an estimated $690 million annually in personal income, with 10,000 jobs lost each year in the Capital Region. Businesses and residents lost nearly $743 million annually in direct losses, while the area’s gross domestic product shrinks by $1 billion each year.
The group derived its data from an October 2022 report by the Perryman Group for Citizens Against Lawsuit Abuse. The Perryman Group says it is nonpartisan. Read more about the report from The Center Square.