A report published this week by a Washington, D.C.-based think tank ranks Louisiana as the worst state for social mobility, and l
inks the state’s lawsuit abuse climate as a factor for why many residents never get ahead.
Archbridge Institute published the report,”Building On Momentum: Louisiana’s Path To Mobility,” with an index that ranks where sta
tes perform at enabling citizens to achieve social mobility. Archbirdge defines social mobility as “opportunity to better
oneself and those around them” in the pursuit of achievement, aspirations, purpose, and skills development.
The institute analyzed each state using four broad areas it says contribute to social mobility:
Entrepreneurship and economic growth
Institutions and the rule of law
Education and skills development
Social capital
States in the southeast and south central regions dominate the bottom of the rankings; Texas is No. 45, followed by No. 46 G
eorgia, No. 47 Alabama, No. 48 Arkansas, No. 49 Mississippi and No. 50 Louisiana.
Utah is ranked No. 1 for social mobility, joined at the top by No. 2 Minnesota, No. 3 Montana, No. 4 Delaware and No. 5 Vermont.
Louisiana’s position at the bottom of the index is driven by the state’s poor tort sy
stem, the report says. Louisiana ranked last in trial judges’ impartiality, and in the
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quality of the appellate review process, resulting in a total cost per capita is over $4,000, or 3% of the state’s GDP, according to Archbridge’s analysis.
“In Louisiana, this is largely driven by automotive and general/commercial litigation,” the report says. “This can help explain the seemi
ngly ever-growing cost of home and auto insurance in the state.”
Archbridge recommends that Louisiana advance more tort reforms, like the state has done to reform tax, education and regulation.
Louisiana lawmakers last
year already passed a package of auto and property insurance reforms that aim to cut down on social verdicts and bring more insurers to the state.
The report urges Louisiana to go farther by reforming the state’s pure comparative negligence law, which allows for someone to potentially recover damages even when they were largely at fault.
Archbridge cites an example of a plaintiff who sues for $1 million, but is found to be 99% at fault. In that case, they could still receive 1% of the settlement, or $10,000.
