Idaho Gov. Will Study Tort Bill Before Signing

Idaho Gov. Will Study Tort Bill Before Signing

By Daniel Hays

NU Online News Service, March, 18, 11:02 a.m. EST?Idaho Gov. Dirk Kempthorne, who has announced a desire for tort reform in his state, will do an evaluation and analysis before deciding whether to sign a bill approved by the legislature capping lawsuit award levels, his spokesperson said.

"I can't predict what he'll do. I don't have any indication from him. He usually plays his cards pretty close to the vest," said spokesperson Mark Snider in reference to the bill (HB 92), which won final Senate approval 27-8 last Thursday.

The measure has drawn enthusiastic applause from insurance trade groups including the Alliance of American Insurers in Downers Grove, Ill.

Mr. Snider said the bill has not yet made its way to the governor's office from the Senate, which postponed yesterday's session to attend a funeral for the son of a member.

Once it lands on his desk, the governor has the bill for five days to approve, veto or let pass without his signature.

Mr. Snider noted that Mr. Kempthorne, in his "State of the State" address, "identified tort reform as an issue that needs to be addressed" because of the continuing rise in costs associated with litigation. Mr. Snider said the governor "did not identify any particular bill or strategy" to deal with the tort issue.

Mr. Kempthorne is a Republican and this legislature is GOP- controlled.

The Alliance called the bill landmark legislation. Provisions of the bill limit punitive damage awards and reduce the existing cap on non-economic damages. The House previously passed the bill by a vote of 58-12.

Larry Kibbee, vice president of the Alliance's Northwest Region said the bill was backed by the Idaho Tort Reform Coalition and his organization is urging Gov. Kempthorne to sign it into law as soon as possible.

Mr. Kibbee said the Idaho bill lowers the limits on non-economic damages to $250,000 from the current $400,000.

For a suit seeking punitive damages, HB 92 requires the plaintiff to prove, by clear and convincing evidence, that the defendant engaged in oppressive, fraudulent, malicious or outrageous conduct.

HB 92 also caps punitive damages at the greater of $250,000 or three times compensatory damages.

Idaho is the one of a number of states that has recently moved legislation to limit recoveries from lawsuits for medical malpractice or other causes. Last week, the Arkansas Senate approved a tort reform measure that would cap punitive damage awards at three times compensatory damages or $250,000, whichever is less.