Louisiana Passes New Law Limiting Personal Injury Lawsuit Awards – Law Blog

Louisiana has handed a brand new regulation limiting how a lot cash a plaintiff can get better from a private damage lawsuit. Governor Landry signed Senate Invoice 231 into regulation, which modifications how damages are calculated in instances involving third-party funds, together with medical health insurance. Governor Landry claims the laws will improve courtroom transparency and cut back insurance coverage premiums whereas additionally defending the rights of those that are legitimately injured.  

The brand new regulation modifications Louisiana’s “collateral supply” doctrine. Previous to the brand new invoice, jurors might contemplate the total quantity billed by a medical supplier. Beneath the brand new regulation, although, jurors can solely contemplate the quantity really phelp by the insurer. The intent of the invoice is to take away the power of jurors to award damages past quantities paid for medical therapy. The regulation took impact on June 30, 2025.

What Is the Collateral Supply Rule?

Collateral supply is a rule that prohibits the admission of proof {that a} plaintiff has obtained compensation from some supply aside from the defendant. Beneath the collateral supply rule, proof {that a} plaintiff has obtained insurance coverage, employees’ compensation, or different cost is inadmissible at trial. The rule makes it in order that the defendant pays the total price of the plaintiff’s accidents no matter another compensation {that a} plaintiff could obtain. Opponents to the rule have argued that the rule ends in a windfall for plaintiffs, as they get the good thing about each their very own insurance coverage and defendant payouts.

Opinions on the collateral supply rule will depend upon how one views private damage lawsuits. If the objective is to punish the defendant, the collateral supply rule will make it in order that a jury could probably award extra to the plaintiff, whatever the precise quantity that the plaintiff could owe to medical suppliers.

Healthcare Prices in Litigation Are Negotiable

Healthcare payments could be negotiated, particularly by most plaintiff legal professionals. It’s common that a plaintiff’s lawyer will advocate {that a} shopper see a health care provider in order that the physician can later testify concerning the shopper/affected person’s situation. Because the lawyer could also be sending sufferers to a health care provider, that physician would doubtless be keen to barter the value of his or her providers with the legal professional who referred them. Thus, a medical invoice could not at all times be the ultimate quantity {that a} plaintiff is required to pay; the precise payments could, in truth, be decrease after the lawsuit is over.

Since healthcare prices are malleable, it’s doubtless that a jury might nonetheless award damages past what is required for medical therapies. Altering the collateral supply rule in Louisiana or another state won’t change the general drawback – healthcare prices have by no means been clear in America. Private damage fits are intrinsically linked to healthcare prices. So long as America’s healthcare system stays veiled in inflated prices and backroom offers, private damage legal professionals will proceed to be in demand to navigate this advanced system.

Do I Want the Assist of a Private Damage Lawyer?

You probably have sustained a private damage by means of the illegal act of one other, then it is best to contact a private damage legal professional. A talented private damage lawyer close to you may evaluate the info of your case, go over your rights and choices, and characterize you at hearings and in courtroom.