Lawsuit abuse costs jobs and hurts the economy

Personal injury lawyers want to pretend lawsuit abuse happens in a bubble. They decry any suggestion that the abuse of our courts has any impact on the economy.

But the truth is lawsuit abuse does hurt the economy and the ones who are the hardest hit are often the people who have the most to lose. In Louisiana, the latest lawsuit scam involves so-called “Legacy” lawsuits. Under the guise of cleaning up the environment where conventional onshore oil rigs were located, personal injury lawyers are scouring property records to connect parcels of land to any “deep pocket” defendants they can find.

In the end, these lawsuits are hurting people who need a good-paying job. A recent Louisiana State University study shows how these so-called “Legacy” lawsuits have cost Louisiana citizens more than 30,000 jobs and $1.5 billion in wages in the last eight years.

In a letter recently sent to members of a Louisiana State Senate committee, the top executive of Hilcorp, a leading oil producer in Louisiana, wrote, “Hilcorp currently operates in 10 states. But nowhere, not Texas, not Wyoming, and not Alaska, do we operate in a legal environment like Louisiana…. “Unfortunately, legacy lawsuits appear to be a growth industry in Louisiana, with no signs of abating. The consequences of inaction are dire for our business and for the industry as a whole.”

More than three quarters of the legacy lawsuits filed do not have any evidence of environmental damage. While millions of every day Americans in Louisiana and other states are looking for a job to provide for their families, a small group of legacy lawsuit lawyers continue to line their pockets thanks to their abusive lawsuits. This is not justice. This is an abuse of our legal system that is costing jobs and opportunities. The “Legacy” lawsuits are just another example of how the real world “legacy” of lawsuit abuse is ultimately job loss.