Caps on Damages in Louisiana

When you or a loved one suffers injuries due to someone else's negligence, the last thing you should worry about is arbitrary limits on the amount of money you receive in compensation. Unfortunately, Louisiana has implemented damage caps in certain types of personal injury cases that restrict the amount of money injured victims can recover, regardless of the actual harm they suffered or what a jury determines is fair compensation.

In this blog post, our personal injury lawyers will explain Louisiana caps on personal injury damages and how they impact injured families.

What Are Caps on Damages?

Damage caps are legislative limits that restrict the maximum amount of compensation an injured person can recover in a lawsuit. These caps place arbitrary dollar amounts on different types of damages, effectively overriding jury verdicts and judicial discretion in personal injury cases.

Unlike many other states that have broad damage caps across various types of personal injury cases, Louisiana takes a more limited approach. However, the caps that do exist can significantly impact a victim's ability to recover full and fair compensation.

Current Damage Caps in Louisiana

Louisiana currently places dollar limits on financial recovery in certain types of claims:

Claims Involving Accidents

Under Louisiana law, most victims of accidents caused by negligence may face limits on the total damages they can recover. These caps apply to the combined total of economic damages (such as medical bills, rehabilitation costs, and lost wages) plus non-economic damages (such as pain and suffering).

There are important exceptions to these limits:

• The cap does not apply to future necessary medical care arising from the same accident.
• If the negligent party is not properly qualified or legally protected, there may be no limit on recovery.

Claims Against Government Entities

Louisiana Revised Statute § 5106 limits damages recoverable from government agencies to $500,000. This applies when someone suffers injuries in situations such as:

• Falls in public parks or on government property
• Car accidents caused by municipal employees
• Injuries due to hazardous conditions on government property
• Other accidents resulting from government negligence

Workers' Compensation Claims

In workers’ compensation cases, injured workers can only receive compensation for economic damages, such as medical bills and lost wages. They cannot receive compensation for pain and suffering, regardless of the severity of the injury. The only way to recover additional compensation is if a third party caused the accident.

Why Damage Caps Exist and Why They Often Fail

Proponents of damage caps typically argue that these limits:

• Reduce insurance costs
• Prevent "frivolous" lawsuits
• Provide predictability for businesses and healthcare providers

However, the evidence suggests that damage caps have failed to deliver on these promises. Louisiana's existing caps on medical malpractice damages have not resulted in reduced insurance rates or improved medical care. The caps simply shift financial burdens from insurance companies to taxpayers, leaving injured families struggling to cover their expenses.

How Insurance Companies Shift Burdens to Taxpayers

When damage caps prevent injured families from recovering fair compensation, insurance companies benefit while taxpayers ultimately bear the cost. Here's how this harmful cycle works:

Insurance companies often employ delay tactics to prolong personal injury cases for years, pressuring families into accepting inadequate settlements. During these lengthy delays, families facing mounting medical bills and lost wages frequently have no choice but to rely on government assistance programs.

This creates a situation where:

• Insurance companies avoid paying fair compensation.
• Injured families struggle financially.
• Taxpayers fund public assistance programs that wouldn't be necessary if fair compensation were available.
• The actual wrongdoers face reduced financial consequences for their negligence.

Types of Damages Affected by Caps

Understanding the different types of damages helps illustrate why caps can be so devastating for injury victims:

Economic Damages

Economic damages include measurable financial losses such as:

• Medical bills and future medical expenses
• Lost wages and diminished earning capacity
• Property damage from accidents
• Costs associated with long-term medical care and rehabilitation

Non-Economic Damages

Non-economic damages compensate for losses that don't have specific dollar amounts, including:

• Pain and suffering from severe injuries
• Mental anguish and emotional distress
• Loss of enjoyment of life
• Disfigurement and scarring

In wrongful death cases, families may also seek compensation for:

• Loss of companionship and support
• Funeral and burial expenses
• The deceased's lost future earnings

The Dangerous Precedent of Expanding Damage Caps

Currently, Louisiana generally doesn't place caps on compensatory damages in most personal injury cases, such as car accident disputes or slip and fall claims. This approach recognizes that courts and juries are best positioned to determine appropriate compensation based on the specific circumstances of each case.

However, various industry groups continue to pressure legislators to expand damage caps to other areas. This creates a dangerous precedent that could eventually limit recovery for all types of injury cases, including:

• Motor vehicle accidents
• Premises liability cases
• Product liability claims
• Other forms of personal injury

Such expansion would further tilt the scales of justice in favor of wrongdoers and their insurance companies while leaving injured families to bear the financial consequences of others' negligence.

What You Can Do to Protect Your Rights

If you or a loved one has been injured due to someone else's negligence, it's crucial to understand your rights and take action to protect them:

• Seek medical attention: Your health and safety are the top priority.
• Document everything: Keep detailed records of your injuries, treatment, and expenses.
• Contact an attorney: Louisiana has a two-year statute of limitations for most personal injury claims that occurred after July 1, 2024. Injuries before this date have a one-year statute of limitations.
• Avoid early settlement offers: Insurance companies often make lowball offers before the full extent of damages is known.

At Rice & Kendig, we're more than just lawyers — we see real people in each of our clients, and our primary goal is to make things better for them. We understand that behind every case is a family dealing with pain, uncertainty, and financial stress.

Get Fair Compensation with Rice & Kendig

The insurance industry's push for expanded damage caps is about protecting profits, not promoting safety or reducing costs for consumers. Louisiana families deserve better than artificial limits that prioritize corporate interests over justice. Contact us today for a free consultation — we're here to fight for the full compensation you deserve.