Pa. Gets A Fair Share Liability Law

By E.E. Mazier

NU Online News Service, June 20, 11:34 a.m.EST?Acting speedily, Pennsylvania Gov. Mark Schweiker puthis signature on a tort reform bill yesterday that changes the wayliability and damages are apportioned among multiple defendants incivil cases.

Mr. Schweiker signed the legislation into law just one day afterSenate Bill 1089 won passage.

The provision for reform of the joint and several liabilitymethod of awarding court damages was tacked onto SB 1089, whichmostly addresses DNA testing.

Under the previously existing law, after a verdict a plaintiffcould choose the defendant with the "deepest pocket" to pay all ofthe damages even if that defendant was only minimally responsiblefor the damages.

Pennsylvania's new "Fair Share" law states that each defendantis liable only for his or her share of the damages in proportionfor his or her liability.

One exception is in cases where the defendant was 60 percent ormore at fault, or is found liable for intentional misrepresentationor some other intentional tort. Other exceptions are for certainenvironmental claims and violations of the liquor code.

In the view of the Alliance of American Insurers, Downers Grove,Ill., the new law will increase the fairness of how liability isallotted and will encourage a fairer tort system inPennsylvania.

"By apportioning payment in accordance with responsibility, thisreform will result in a more equitable spread of costs amongdefendants in a civil suit," said Neil Malady, AllianceMid-Atlantic regional manager.

Mr. Malady called the joint and several doctrine of liability "arelic of the traditional contributory negligence system that hasbeen discarded in most jurisdictions."

He said that Gov. Schweiker and the legislature have recognizedthat the joint and several doctrine of liability "has causedbusinesses to have second thoughts about economic development inPennsylvania."

The Alliance said it believes the new law places theCommonwealth "on a path for improved economic vitality," Mr. Maladysaid.

The American Insurance Association, Washington, D.C., alsopraised the Fair Share law.

"AIA commends the Pennsylvania legislature for taking the firststep toward reducing lawsuit abuse," said Taylor Cosby, AIA vicepresident, mid-Atlantic region.

He said that under the old law, the Pennsylvania court systemhad become "a lawsuit lottery" that placed Pennsylvania businessesat a distinct economic disadvantage with other states.