No Mercy for Employers in Louisiana Supreme Court’s Recent Magill Decision
In its recent per curiam opinion, Magill v. Werner Enterprises, Inc. of Nebraska[1], the Louisiana Supreme Court has foreclosed a routine defense strategy to shield employers from direct negligence claims. The high court has extended their 2022 decision in Martin v. Thomas[2], and now allows plaintiffs to pursue direct negligence claims against an employer despite the employer’s stipulation that its employee was in the course-and-scope of employment and caused the accident. Essentially, employers who fail to implement better employment practices will permit plaintiffs to ramp up potential exposure with evidence, if such exists, that heretofore they were routinely barred from introducing at trial. The Supreme Court’s Magill holding should encourage employers to update where needed their policies and procedures pertaining to hiring, training, supervising, and entrusting duties and property to employees, not only for the safety of their employees and customers in this state, but also eliminate employer’s exposure to direct negligence claims.
Prior to Martin, a litigation strategy had taken shape where employers stipulated to 1) an employee being in course-and-scope of employment at the time of the accident, 2) that the employee was at fault for the accident being caused, or 3) both. By stipulating these facts, employers were largely able to exclude evidence of any direct negligence on part of the employer and/or narrow the scope of trial to only a contest of the plaintiff’s injuries.
The Supreme Court in Martin held that despite an employer admitting their employee was in course and scope when the accident occurred, plaintiffs could pursue direct negligence claims against the employer—as the issue of liability had not been admitted. Accordingly, employers found success by admitting both course and scope and liability—as seen in the Western District of Louisiana’s holding in Ferguson v. Swift Transp. Co. of Arizona[3]. In Ferguson, the defendants stipulated that their employee was acting in course-and-scope at the time of the accident and their employee was 100% at fault for the accident being caused. Due to the employer’s stipulation of fault, Judge Wicks of the Western District of Louisiana held that Martin did not apply and that plaintiffs could not pursue direct negligence claims.
In Magill, the Louisiana Supreme Court provided scarce reasoning for their decision. The high court simply affirmed the District Court’s expansion of the holding in Martin and that the employer’s reliance on the Western District’s Ferguson holding was a misapplication of Louisiana law. The Supreme Court also cited the decision in Tardo v. Farrell.[4] where the Fifth Circuit held that even if an employer and employee stipulate to course and scope and fault, those admissions do not eliminate direct-negligence claims because those claims remain separate issues for the trier of fact. The Fifth Circuit notably stated, “the societal decisions as to who actually pays does not change the manner of assessing fault to all parties as required by law.” This statement raises concern, as plaintiffs may now attempt to challenge employer stipulations that historically narrowed trials. The Supreme Court did not explain its reliance on Tardo, so future litigation will likely clarify the decision’s full impact.
Under Magill, plaintiffs are permitted to pursue direct negligence claims against the employer despite the employer admitting that their employee was acting in course and scope at the time of the accident and their employee was 100% at fault for the accident being caused.
The full effect of the Supreme Court’s decision remains to be seen. In praxis, Magill will permit plaintiffs to put on evidence of direct negligence by an employer in front of a jury who cannot assign fault—as fault has already been stipulated to by the defendants. Employers now face the practical risk that plaintiffs will encourage juries to increase damages as a form of punishment against an employer that admits fault but contests the nature and extent of the plaintiff’s injuries. Employers should use this moment to rigorously review and strengthen policies and procedures related to hiring and training in order to limit exposure when plaintiffs assert direct-negligence claims.
[1] Magill v. Werner Enterprises, Inc. of Nebraska, 2025-00892 (La. 11/12/25)
[2] Martin v. Thomas, 21-01490 (La. 6/29/22), 346 So.3d 238
[3] Ferguson v. Swift Transp. Co. of Arizona, 17-1570, 2023 WL 173413 (W.D. La. Jan. 12, 2023)
[4] Tardo v. Ferrell, 25-123 (La. App. 5 Cir. 5/28/25), 2025 WL 1516837 (unpublished).
