Louisiana Motor Transport Association

www.lmta.la | www.lmta.foundation

lmta@lmta.la

(225) 928-5682

It was low key this week at the legislature as they kicked off their fiscal session for the 2023 year. Committees were held and the floors convened to start taking care of business. Not a lot of activity as far as controversial bills are concerned but the session has begun.

This is an election year for the legislature, statewide and governor’s office so expect there to be a fair amount of posturing from those running for office. There will be a rerun of social issues, as well as hearing on tax reform proposals. How many of these bills that make it to the finish line is anyone’s guess.

LMTA is laser focused on our strong support for HB 324 by Rep Paula Davis that would correct the Martin decision by the Louisiana Supreme Court last year. This LMTA-sponsored bill will be heard on Tuesday April 18, 2023 in the House Civil Law committee.

This is the first step in a long process. We are sending an ACTION ALERT out tomorrow asking you to reach out to your lawmaker if they serve on this committee. Stay tuned!

In cases where an employee is alleged to be negligent in causing an accident, the employer admits vicarious liability for that employee, and there are no circumstances supporting punitive or punishment damages (such as intoxication), damage awards are legally limited to compensating the injured parties for their losses. Damage awards intended to punish defendants are legally improper in cases of simple negligence. Nevertheless, plaintiffs intentionally seek to “back door” punitive awards by arguing that employers are not only vicariously liable for the fault of employees, but also liable for their own actions that allegedly caused the employees to be negligent – specifically, negligent hiring, training, supervision and entrustment.

The Martin court held that, in cases in which employers stipulate vicarious liability for the negligence of employees, plaintiffs may still pursue employers for negligent hiring, training, supervision or entrustment. The Martin holding allows and supports the improper tactic of inflaming juries to give “nuclear” awards that are, in fact, improper punitive awards masked as compensatory damages. Louisiana businesses and citizens will be damaged by such verdicts. 

HB 324 seeks to legislatively overrule the holding of the Court in Martin and put employers in the same position that they were in before the Martin decision. 

• LMTA OPPOSES HB 594 by Rep Larvadain which would shift mobile enforcement of trucks to the DOTD from LSP. The scale houses were shifted to DOTD two years ago and since implementation, there has been a lack of communication from the department and uneven enforcement.

• LMTA SUPPORTS SB 196 by Sen Peacock which creates the Litigation Financing Disclosure and Security Protection Act. Litigation financing is when a third party invests in a lawsuit in exchange for a share of the profit. Its an awful practice which inserts another party into a lawsuit which ultimately increases the complexity of the case and prolongs the litigation. This process definitely needs sunlight and transparency.