Tort Reform For Terror Claims Blocked
NU Online News Service, June 14, 10:45 a.m. EST?The U.S. Senate voted last night to table a Republican amendment to a proposed terrorism reinsurance bill that would have banned most punitive damages.
The amendment, sponsored by Sen. Mitch McConnell, R-Ky., and Phil Gramm, R-Texas, was voted down 50-46 along party lines.
Language in the amendment would have permitted such claims against a defendant who is convicted of a criminal offense that is related to the plaintiff's injury.
The Bush Administration has indicated that the President would veto any terrorism reinsurance bill without some sort of tort reform limitations on lawsuits related to terrorism claims.
In a letter sent yesterday to Senate Minority Leader Trent Lott, R-Miss., top Bush administration officials said that the legislation must not allow for excessive litigation against American companies. The tort reform issue is the primary reason the legislation has been delayed in the Senate up to this point.
The letter said that American businesses that are victims of terrorism should not have to pay punitive damages. "We would recommend that the President not sign any legislation that leaves the American economy and victims of terrorist acts subject to predatory lawsuits and punitive damages," the letter said.
The letter was signed by Treasury Secretary Paul O'Neill, Office of Management and Budget Director Mitchell E. Daniels, National Economic Council Director Lawrence B. Lindsey and Council of Economic Advisors Director R. Glenn Hubbard.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.