Ohio House Passes Tort Reform
By Matt Brady
NU Online News Service, Dec. 9, 4:21 p.m. EST? Ohio state representatives beat a deadline last night and passed legislation changing the state's civil tort system to limit injury awards and some penalties.[@@]
State Senate President Doug White, R-Manchester, had said the Senate would adjourn at midnight. Under Ohio legislative procedures the upper house was required to be in session in order to approve any changes that might be made to the legislation. The house passed the measure at four minutes to twelve.
The tort reform measure was a high priority for Gov. Bob Taft. House lawmakers passed it just in time by a 62-31 vote. The measure had already been passed by the Senate in 2003 and will now go to Gov. Taft for his signature.
"Since my State of the state address in January, I have spoken with business leaders and economic development groups from across the state and listened to their concerns about the negative effects of lawsuit abuse," Gov. Taft said in a statement on the bill's passage.
"I commend the members of the General Assembly for their hard work in passing meaningful comprehensive tort reform in Ohio. The Legislature has been debating this important issue for months, and I am pleased that they passed a bill that will help improve the business climate and create jobs in Ohio."
The measure, known as SB 80, includes caps on non-economic damages of $350,000 per plaintiff for non-catastrophic injuries, with a maximum of $500,000 per occurrence, according to Greg LaCoste, regional manager and senior counsel for the Property Casualty Insurers Association of America.
Also included is a limit on punitive damages for small companies of $350,000. Small companies, as defined in the bill, are those with 500 or fewer employees for manufacturers and less than 100 employees for all other businesses.
The punitive limit provision could raise some legal questions, however. In a note to PCI members, Mr. LaCoste said the group, "is not certain of the constitutionality of such a provision and will review the provisions when they are available."
Sean McManamy, assistant vice president for the Midwest region for the American Insurance Association, said that passage of the bill, "is a win for all Ohioans because it helps bring fairness and predictability to the civil liability system."
Tort reform advocates had high praise for a decision by Sen. White's to take a hard line on the measure. They said he had prevented House Democrats from weakening the bill.
"It was obvious to everyone involved that the House was going to water down the bill so much that it would sink. Thankfully, Senator White had the political will to step in and demand the House pass a bill that would help jumpstart Ohio's economy," said Jeff Longstreth, executive director for the group Ohio Citizens Against Lawsuit Abuse.
"While this legislation is not perfect, it provides a good start to overhauling Ohio's tort system. The bill will not only protect Ohio's food manufacturers from frivolous lawsuits, it will also help to revive our economy by protecting our small business owners," he added.
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