Louisiana Legislators, Gov. Landry And Two Trial Attorneys Talk Auto Insurance At Texas Lodge

Five legislative leaders met with Gov. Jeff Landry and two prominent trial attorneys in Texas last week to hunt turkey and talk legislative business — including whether lawmakers will keep trying to make it harder for lawyers to collect big payouts for clients injured in car accidents.

Gordon McKernan, one of the two attorneys, flew House Speaker Phillip DeVillier, Senate President Cameron Henry and three committee chairpersons on his law firm's jet on Monday to the Tributary Sporting Club near Austin. Landry met them there. They all returned Wednesday.

Landry issued the invitations, and Protect Louisiana Values, one of his political organizations, paid for their stay at the hunting resort, lawmakers said.

The trip came at a time when business-oriented Republican legislators have been expressing concern privately that Landry will again favor trial attorneys on major legislation during the upcoming legislative session. Last year, Landry vetoed one major piece of legislation involving a legal doctrine known as "collateral source" that would have limited potential payouts for trial lawyers. He also insisted that legislators limit several other measures opposed by trial lawyers before agreeing to support them.

At the time, he said he rejected the collateral source bill to ensure that working people and consumers would receive what they deserve in medical costs following an accident caused by others.

'We tried something new'

When this year's session begins later this month, the trial attorneys and lobbyists for business interests will resume their long-time political fight.

With that in mind, Henry said the outing to Texas was an attempt to see if legislators could find common ground with the trial lawyers on ways to protect the rights of people injured in accidents while eliminating frivolous lawsuits.

"The governor's thought was why don't we bring these guys to the table on something that we can pass and bring down rates," Henry, R-Metairie, said. "We tried something new to see if we could get a bill across the governor's desk that he's willing to support that doesn't restrict the insurance companies in a way that doesn't make them want to do business in Louisiana and doesn't unfairly restrict those who are injured in accidents."

Henry said they decided to have the discussion at a Texas hunting lodge because "We've tried it around the table in my office." He said that led to compromise legislation on property insurance last year but not auto insurance.

"Year after year, we've been trying to solve this – balancing what's good for the insurance companies, and then we run into the opposition of the trial bar," Henry said. "They've been excluded from every conversation. We have to bring all sides in. We now have a better understanding of what the sticking points are, and what we believe the bad actors on both sides are doing."

Also traveling to Texas for the meetings were Sen. Kirk Talbot, who chairs the Senate Insurance Committee; Sen. Patrick McMath, who chairs the Senate Health and Welfare Committee; Rep. Jack McFarland, who chairs the House Appropriations Committee; Kyle Ruckert, the governor's chief of staff; and Digger Earles, a big-name personal injury lawyer in Lafayette who is buddies with Landry from when they attended law school together.

No business lobbyists went on the trip.

State ethics laws generally prohibit public officials from receiving anything "of economic value" for the performance of their official duties. Whether that would apply to the McKernan flights is not clear. Public officials have to disclose flights on donors' planes if the flights are campaign related.

DeVillier, McKernan and Earles did not return phone calls seeking comment about the trip or the discussions that took place.

Through a spokesperson, Landry declined to comment.

Hunting and insurance

Talbot, R-River Ridge, has championed the business point of view during his tenure in the Legislature.

He said the trip didn't change his view that to lower auto insurance rates — which he called the highest in the country — Louisiana must tilt the legal scales away from excessive litigation and excessive payouts.

Asked whether the purpose of the trip was to try to nail down an agreement on car insurance issues, Talbot said, "I wouldn't characterize it as hammering out a deal. It was more of a lively discussion on the causes of the high rates and how to solve them. Any time I can talk to different people, you hear different perspectives, and that's valuable. I'm willing to meet anyone anywhere to debate and discuss this."

Lawmakers said they went hunting one morning in Texas but otherwise devoted their time to discussing how to address high auto insurance rates and the path forward on the state budget after voters a week ago rejected overhauling the tax section of the state constitution.

"It was not like we just went out there and had a good time," said McFarland, R-Jonesboro. "We spent hours in meetings on Monday afternoon, Tuesday and again Wednesday."

McFarland said he, Landry and his legislative colleagues discussed the budget situation without McKernan or Earles present.

"There are significant budget challenges," McFarland said. "It gave us the chance to discuss them. I'll be forced to do things that Jeff won't like. I won't be in agreement with everything he wants to do."

Last year, McFarland passed legislation long sought by business interests that prevents injured parties from suing insurance companies directly, a practice known as "direct action." Proponents of the measure believe judges and juries award bigger claims when they know that deep-pocketed insurance companies are on the hook.

But McFarland softened the final version at the behest of Landry and trial lawyers. The governor signed the legislation into law.

McMath, R-Covington, said he was invited on the trip to lend his perspective on insurance issues.

"Insurance is the number one issue our constituents face," McMath said. "We have to find ways to curb costs for homeowners, autos and health. You have to have conversations with the people involved in the process. You have to be educated on the issues."

Political contributions

McKernan is among the major trial attorneys who contributed heavily to Landry when he won the 2023 governor's race, after he supported Gov. John Bel Edwards, a Democrat, during his eight years in office. McKernan gave $100,000 to the Louisiana Republican Party in 2023, and his law firm contributed $15,000 to Landry.

McKernan is based in Baton Rouge but has law offices throughout the state. In January, he began an ad blitz in metro New Orleans to gain clients there.

In an interview two months ago, McKernan said he began contributing to state lawmakers because of "the repeated calls by the insurance industry to reform things that make their side of the table more profitable. At the same time, that's a transaction where regular everyday folk, working men and women, are giving up rights that they don't realize in return for promises that don't materialize."

In addition to vetoing the legislation last year over the objections of business interests, Landry has also raised hackles among conservatives by appointing two trial attorneys, John Carmouche and Rico Alvendia, to positions on the LSU Board of Supervisors. Both have contributed generously to Landry and the Louisiana Republican Party.

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