Louisiana’s coastal litigation earned the No. 4 spot on this year’s Judicial Hellholes® list after the first case to go to trial resulted in a $744 million verdict, prompting a response from the White House, the U.S. Supreme Court, and a former U.S. Attorney General.
The American Tort Reform Foundation’s report, released today, warns that more than 40 similar cases targeting hundreds of energy companies could expose Louisiana’s vital energy industry to tens of billions of dollars in liability while doing little to restore the coast.
The U.S. Supreme Court agreed to review whether the state’s never-ending coastal litigation belongs in federal or state court and is scheduled to hear arguments on January 12, 2026.
ATRF notes that Louisiana Gov. Jeff Landry has supported coastal litigation and maintains close ties to the lead plaintiffs’ lawyer driving the suits. John Carmouche, whose firm is suing on behalf of Louisiana parishes, has steered hundreds of thousands of campaign dollars to Landry and other state and local officials, including to the judge who presided over the Chevron case that produced the $744 million verdict.
“At this point, after more than a decade of legal fights, between runaway verdicts and deep political entanglements, Louisiana’s coastal litigation saga is no more than a vehicle for jackpot justice to line the pockets of a few well-connected trial lawyers,” said Tiger Joyce, president of the American Tort Reform Association.
Litigation Undercuts National Policy
In the lawsuits against more than 200 energy companies, Louisiana parishes claim drilling operations led to coastal erosion. Energy companies say those operations were conducted under World War II‑era federal directives, thus the cases should be in federal court.
The lawsuits started a decade ago, but received national attention this year when a Plaquemines Parish jury returned a $744 million award in the first case to go to trial.
The nuclear verdict® drew a swift response from the White House, with President Trump issuing an executive order, “Protecting American Energy from State Overreach,” castigating state actions that threaten U.S. energy production through retroactive, punitive penalties. Former Attorney General Bill Barr also sent a letter to Louisiana Attorney General Liz Murrill expressing concern about the wave of lawsuits filed by the parishes targeting American oil and gas companies.
“If this year’s nuclear verdict® is any indicator, this litigation could drive employers out of Louisiana and jeopardize thousands of good‑paying jobs, all without actually rebuilding a single mile of coastline,” Joyce said. “The problem starts at the top. The governor has supported these lawsuits and openly embraces the trial lawyers leading the charge.
During his time as attorney general, now-Gov. Landry stripped energy companies targeted by the lawsuits of their ability to raise legitimate defenses. While campaigning for governor, he promised trial lawyers they would have “nothing to fear” with him as governor.
Gov. Landry, who received at least $75,000 in contributions funneled through John Carmouche’s law firm and network, appointed Carmouche to the Louisiana State University Board of Supervisors. The prestigious role allows Carmouche exclusive privileges, including access to the LSU board suite at football games and unique business and political networking opportunities.
“As Louisiana’s chief executive, Gov. Landry should work to restore confidence in Louisiana’s courts, not deepen the perception that justice is for sale to the highest bidder,” Joyce said.
A recent report found that Louisiana families pay more than $4,000 per year in a “tort tax” while nearly 40,000 jobs are lost each year due to excessive tort costs. For New Orleans residents, that cost more than doubles — $8,048 per year for a family of four, or $2,012 per person.
The report’s “Watch List” includes fraud in Louisiana as a major concern. Fallout continues from “Operation Sideswipe,” which involved staged accidents with big rig trucks in the New Orleans area. A copycat fraud scheme in Lafayette was uncovered this year that also involved staged car crashes and bogus insurance claims. Legislative reforms enacted in Louisiana this year aim to address these particular abuses in the state’s civil justice system. However, ATRF notes it is too early to tell whether these reforms are strong enough to improve the system and will monitor courts’ responses.
Louisiana’s coastal litigation ranks No. 4 on the 2025-2026 list of eight Judicial Hellholes®. The full report and rankings are available at JudicialHellholes.org.
