BATON ROUGE – A bill that would have placed a cap on general damages in civil lawsuits was blocked 5-4 by a House committee.

House Bill 526, authored by Rep. Kellee Hennessy Dickerson, R- Denham Springs, sought to place a $500,000 cap on civil damages, which did not include property damage, lost wages, tangible losses or medical bills. The proposed bill also would not have applied in cases of severe, permanent injury.

The bill, which was considered Tuesday, aimed at lowering auto insurance rates by lowering the frequency of what Dickerson called “nuclear verdicts” that can produce millions of dollars in damage awards. If insurance companies no longer had to make huge damage awards, Dickerson said, those reduced costs would lower insurance premiums.

“In Louisiana, the same case can produce very different results, depending on where it is tried,” Dickerson said. “That unpredictability drives up settlements, increases litigation cost and forces insurers to price for worst-case scenarios. And, folks, guess what? Those costs fall on families, small businesses, on everyday policyholders.”

The bill was rejected by House Committee on Civil Law and Procedures. It was the latest in the years-long debate about how to lower insurance rates in Louisiana. Car insurance rates in the state are among the highest in the country.

The bill was backed by Louisiana trucking company owners, some of whom told the committee their insurance rates have steadily increased over the past few years, some as much as 80%. “I mean, you're looking at a perfect storm right now with fuel prices,” said Toni McAllister, executive director of the Louisiana Loggers Association.

A clause in the proposed bill, however, drew concern from sexual assault advocates. The bill would have allowed damages due to intentional or malicious acts to bypass the cap, if convincing evidence was produced by the plaintiff. 

While Dickerson clarified in her closing statement that the bill was not intended to target victims of sexual assault, advocates noted it would effectively move the burden of proof to the victims seeking damages.

“The ability to get to that clear and convincing point is a reason why I think they pursue civil matters,” said Morgan Lamandre, CEO of Sexual Trauma Awareness Response.

Committee chairman Rep. Nicholas Muscarello Jr., R-Hammond, said there was little evidence that placing caps on damages result in lower insurance premiums. 

Muscarello said that after a package of bills aimed at lowering insurance costs passed in 2025, the state has seen a significant decrease in auto insurance costs and about 30 to 35 new insurance companies doing business in the state, even without capping damage awards.