Louisiana Tops Nation in Insurance Lawsuits
Louisiana has surpassed all other states in the number of insurance lawsuits filed in district courts from 2020 to 2022, according to a recent analysis conducted by legal analytics firm Lex Machina.
The report reveals that 3,798 insurance cases were filed over the three-year period in the Eastern District of Louisiana, encompassing the Capital Region. This figure represents the second-highest number of cases among all district courts in the United States. The Western District Court of Louisiana took the top spot with 8,169 cases filed. Combining the cases from the state's two federal districts, Louisiana accounted for 26.1% of the total insurance cases filed nationwide, amounting to 11,967 cases.
Among the firms involved in representing plaintiffs in insurance lawsuits, McClenny, Moseley & Associates (MMA) emerged as the most active. The firm handled 2,766 cases from 2020 to 2022.
However, MMA has faced scrutiny for its practices. The firm has been accused of filing numerous suits against insurers that had never issued policies to the plaintiffs. Additionally, it has filed lawsuits on behalf of claimants who had already settled their insurance claims. The ABA Journal reports that a judge in the Louisiana Western District suspended MMA for 90 days due to these concerns. Furthermore, the Louisiana Department of Insurance served the firm with a cease-and-desist letter on February 17 after acknowledging that it had made 856 misrepresentations to Louisiana insurers by filing cases on behalf of insurers and homeowners it did not represent.
In an attempt to address the prevalence of excessive lawsuits against home insurers in Louisiana, Insurance Commissioner Jim Donelon expressed his support in March for a proposal that would make it more challenging and costly for property owners to file lawsuits against insurance companies. However, the 2023 legislative session concluded without the passage of any such measures.