Oklahoma Passes Bill Clamping Down On Litigation

WASHINGTON–The Oklahoma Legislature completed work on legislation yesterday tightening laws governing lawsuits filed in the state and restricting awards for pain and suffering.

The American Insurance Association issued a statement lauding the legislature's action, calling the package “landmark” and adding that it was likely to encourage economic development in the state.

“These significant reforms will help restore balance and fairness to the civil justice system in Oklahoma and attract new business and jobs to the state,” said John Marlow, AIA assistant vice president, Southwest region.

The bill now heads to Democratic Gov. Brad Henry for signature. The Oklahoma Senate passed the bill, S.B. 507, 25-22, Thursday. The Oklahoma House voted out the amendment from the original bill on April 17 by a vote of 57-39.

Among its provisions, the bill:

oCaps non-economic damages at an inflation-adjusted maximum of $300,000 unless the jury finds “by clear and convincing evidence that the defendant was grossly negligent, or acted intentionally or with malice.”

oRequires a conscious decision by a potential class action member to include himself/herself in the class.

oRequires that if the plaintiff is using an expert witness to prove liability, the plaintiff must file a written opinion of the expert within 60 days of filing the lawsuit showing why the expert believes that liability exists.

oSets out the rules for testimony by lay witnesses and experts. The provision was said to be aimed against the introduction of so-called “junk science.”

oRestricts the assessment of prejudgment interest until three years following the filing of a lawsuit.

oCaps appeals bonds at $25 million, with the appeals cap for individuals or small businesses (less than 250 employees) set at $1 million.

oRequires that in a professional liability action, the jury may only award punitive damages if they find “by clear and convincing evidence” that the defendant has been guilty of intentional or gross negligence.

Other provisions include eliminating damages for joint and several liability; and allowing for the admission of evidence that shows the plaintiff received compensation for the harm that gave rise to the cause of action, and requires that such sum be deducted from the amount of damages awarded.