Louisiana Passes Major 2025 Tort Reform and Insurance Legislation

In a sweeping effort to tackle rising insurance costs and reform the legal landscape, the 2025 Louisiana Legislature has enacted several key laws focused on tort reform and insurance regulation. Signed into law by Governor Jeff Landry, the new legislation includes significant changes to:

• Comparative Fault Rules

• Louisiana’s “No Pay, No Play” Law

• The Housley Presumption Affecting Personal Injury Claims

• Changes to Recoverable Medical Expenses 

These reforms are designed to address long-standing concerns about Louisiana’s high auto and commercial insurance rates and the perceived unpredictability of its legal system.

At Barry Rome Scott, we are closely monitoring these legislative changes and what they mean for insurers, businesses, and individuals involved in litigation throughout the state. Download our attached summary of these changes, and stay tuned to our website and blog for ongoing updates, practical analysis, and what these reforms could mean for your bottom line.

HB 450 – No More Housely Presumption

Effective upon and applicable to causes of action arising after the signature of the governor (May 28, 2025), the “the lack of a prior history of an illness, injury, or condition shall not create a presumption that an illness, injury, or condition was caused by the act that is the subject of the claim.” This is a legislative overruling of Housely v Cerise, 579 So.2d 973 (La. 1991). So, now the burden of proof will stay with the plaintiff to prove their case regarding causation of the injury.  In the past, Courts may find that the symptoms alleged by plaintiff were caused by the accident at issue if the plaintiff had not been treating at the time of the accident. Often a gap in treatment as little as three months prior to the accident at issue was enough for a court to use the Housely presumption.

HB434 – No Pay No Play Is Now $100,000

Effective August 1, 2025, uninsured drivers and uninsured owners of vehicles are barred from recovering the first $100,000.00 of bodily injury or property damage. AND…. If they file suit and are awarded an amount equal to or less than $100,000, the plaintiff is held liable for all court costs incurred by all parties.

HB436 – No General Damages or Wages for Unauthorized Aliens

Effective August 1, 2025, unauthorized aliens as defined by federal law are barred from recovering general damages and past and future wages arising from an auto accident. The law does not apply to UM/UIM claims when the unauthorized alien is making a UM/UIM claim on a policy in which they are a named insured.

HB431 – Modified Comparative Fault and $0 Recovery for Plaintiffs More Than 50% at Fault

Effective January 1, 2026, any claimant found 51% or more at fault for an accident is barred from recovering damages. If the claimant is less than 51% at fault, the claimant’s recovery is reduced in proportion to the fault attributed to the claimant.

HB291 – Prescription on Wrongful Death and Survival Claims

This bill extends prescription on wrongful death and survival claims to one year from the death of the deceased, or two years from the day that injury is sustained, whichever is longer.

HB438 – Insurance Advertising Expenses

The bill disallows an insurer from considering its “institutional advertising expenses” for the purpose of setting rates. The bill defines institutional advertising expenses as “advertising not aimed at obtaining business for a specific insurer nor providing consumers with information pertinent to the decision as to whether to purchase an insurance product.” The bill has an effective date of January 1, 2026.

SB231 – Recovery of Expenses in Civil Actions and Admissible Evidence.

Effective January 1, 2026, this bill limits the recovery of medical expenses to those actually paid to the contracted medical provider by the health insurer or Medicare and any applicable cost sharing amounts paid or owed by the claimant and not the amount billed.   In instances where the medical expenses were paid by Louisiana Workers’ Compensation Law as provided in R.S. 23:1020.1, et. seq., the claimant’s recovery of medical expenses are limited to the amount paid under the medical payment fees schedule for the Louisiana Workers' Compensation Law.  Also, at trial, the trier of fact shall be informed of the amounts billed and amounts actually paid for medical expenses that have been incurred by the claimant.  This includes amounts paid or pre-negotiated by the attorney for the claimant, in which the medical provider has agreed to accept as full compensation an amount less than the amount billed.  In that circumstance, recoverable amounts are limited to those actually paid or pre-negotiated by the attorney.

Louisiana Tort Reform 2025.pdf

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