Since 1825, plaintiffs in Louisiana have had one year from the date of loss to file suit in a court of competent jurisdiction for delictual (tort) actions and actions based on damage to immovable property. Beginning July 1, 2024, however, Louisiana plaintiffs will have two years to file their claims for these actions.
Sponsored by Speaker of the House Mike Johnson (R-27), Act No. 423 (formerly House Bill 315) enacts Louisiana Civil Code article 3493.11, which establishes a new two-year prescriptive period for delictual actions, and Louisiana Civil Code article 3493.12, which does the same for actions based on damage to immovable property.
La. C.C. Art. 3493.11 and 3493.12 will only be given prospective application. In other words, any damages that occurred before July 1, 2024, will still be subject to the one-year prescriptive period. For example, a lawsuit related to an automobile accident that occurred on June 30, 2024, must be filed in a court of competent jurisdiction by June 30, 2025. However, if that same automobile accident occurred the next day, on July 1, 2024, the plaintiff would have until July 1, 2026, to file a lawsuit related to that automobile accident. As such, it will be some time before the practical application of the new two-year prescriptive period is felt.
Act No. 423 is part of a series of insurance reform bills endorsed by Insurance Commissioner Tim Temple. According to Temple, these reforms aim to allow Louisiana to compete with other states in attracting and retaining insurance companies to write both commercial and private policies. Supporters hope that these changes will increase transparency in the legal process, reduce Louisiana's excessive verdicts and settlements, and encourage insurance companies to issue more policies without the threat of expensive and constant litigation.
The adoption of Act No. 423 ushered in a new era for litigators and insurance companies in Louisiana, which has not altered these prescriptive periods for nearly 200 years. Only time will tell whether these changes will have the desired effects.
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