SLS 22RS-585 ENGROSSED 2022 Regular Session SENATE BILL NO. 402 BY SENATOR ABRAHAM COURTS. Provides for special masters in certain civil actions arising within a parish included in a major disaster declaration. (gov sig) 1 AN ACT 2 To amend and reenact R.S. 13:4165(F)(7) and to enact R.S. 13:4165(F)(9) and (10), relative 3 to courts and judicial procedure; to provide for the appointment, duties, powers, and 4 compensation of special masters; and to provide for related matters. 5 Be it enacted by the Legislature of Louisiana: 6 Section 1. R.S. 13:4165(F)(7) is hereby amended and reenacted and R.S. 7 13:4165(F)(9) and (10) are hereby enacted to read as follows: 8 ยง4165. Special masters; appointment; duties and powers; compensation 9 * * * 10 F.(1) * * * 11 (7) Any special master appointed to serve in a major disaster area pursuant 12 to this Subsection may waive the appointment. Orders initially issued pursuant to this 13 Subsection after January July 1, 2022, shall provide for an opt-out upon request of 14 any party. 15 * * * 16 (9) Notwithstanding any provision of law to the contrary, any order 17 issued pursuant to this Subsection shall be applicable to the successor in interest Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 402 SLS 22RS-585 ENGROSSED 1 to any party subject to the order, in the same manner as originally applicable 2 to the insured or insurer. 3 (10) A guaranty association may voluntarily participate in a mediation 4 initiated pursuant to a case management order six months after the guaranty 5 association assumes responsibility for the payment of covered claims pursuant 6 to an express order of the receivership court or pursuant to an order of 7 liquidation by the receivership court, or at such time prior to the expiration of 8 six months as the guaranty association in its sole discretion determines that it 9 has sufficient information to participate in a mediation. No participation by a 10 guaranty association in a mediation shall waive any rights afforded the 11 guaranty association under the provisions of R.S. 22:2051, et seq. 12 Section 2. This Act shall become effective upon signature by the governor or, if not 13 signed by the governor, upon expiration of the time for bills to become law without signature 14 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 15 vetoed by the governor and subsequently approved by the legislature, this Act shall become 16 effective on the day following such approval. The original instrument was prepared by Alan Miller. The following digest, which does not constitute a part of the legislative instrument, was prepared by Beth O'Quin. DIGEST SB 402 Engrossed 2022 Regular Session Abraham Present law provides for the appointment of a special master in any civil action wherein complicated legal or factual issues are presented or wherein exceptional circumstances of the case warrant such appointment upon consent of all parties. Present law provides that for causes of action arising from a disaster within a parish declared by the president of the United States to be subject to a major disaster declaration under federal law and certified for individual assistance in accordance with the provisions of federal rules, the judges with civil jurisdiction in any court of competent jurisdiction may en banc appoint one or more special masters for all causes of action related to first-party insurance property damage claims. Present law authorizes any special master appointed pursuant to present law to waive the appointment. Proposed law limits present law appointment waiver to special masters appointed to serve in a major disaster area. Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 402 SLS 22RS-585 ENGROSSED Present law further requires orders initially issued pursuant to present law after January 1, 2022, to provide for an opt-out upon request of any party. Proposed law extends the deadline provided for in present law from January 1, 2022, to July 1, 2022. Proposed law requires that notwithstanding any provision of present law to the contrary, any order issued pursuant to present law be applicable to the successor in interest to any party subject to the order, in the same manner as originally applicable to the insured or insurer. Proposed law authorizes a guaranty association can voluntarily participate in a mediation that is initiated pursuant to a case management order six months after the guaranty association assumes responsibility for the payment of the covered claim pursuant to an expressed order of the receivership court or pursuant to an order of liquidation by the receivership court, or at a time prior to the expiration of six months as the guaranty association in its sole discretion determines that it has sufficient information to participate in a mediation, but participation by the guaranty association in mediation can waive any rights it is afforded to under law. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 13:4165(F)(7); adds R.S. 13:4165(F)(9) and (10)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Insurance to the original bill 1. Provides for voluntary participation by a guaranty association. Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.