Oklahoma Gov. Brad Henry said he has initiated talks with the legislature to see if an acceptable tort reform bill can be enacted following his veto Saturday of a measure supported by the insurance industry.
Gov. Henry said he hoped to see a replacement measure crafted by the end of the month before the legislature adjourns. In vetoing the legislation, he cited concerns that "several provisions of the bill were unconstitutional and unduly restricted Oklahomans' ability to seek justice through the court system."
The constitutional questions dealt with provisions in the bill creating "hard" damage caps, inequities in the collateral source provision, and "unintended consequences" of the class action and joint and several liability provisions, among other things.
He added in a statement that he also thought it did not do enough to curb frivolous lawsuits, but that he is willing to sign a reform bill "if it is balanced and passes constitutional muster."
A major factor in the governor's decision was the opposition of Oklahoma Attorney General Drew Edmondson. The state's top law enforcement official had said earlier in the week that the bill, S.B. 507, would make Oklahoma's efforts to protect water quality and prevent pollution virtually impossible.
Mr. Edmondson also raised concerns about the state's ability to pursue other legal actions designed to protect its citizens, the governor said.
He added that the bill did not do enough to curtail frivolous lawsuits, and instead focused on the amount of damages awarded and recovered after a judge or jury found a defendant guilty of negligence.
The bill was passed by the Oklahoma Legislature April 19. It tightened requirements for lawsuits filed in the state, including a provision requiring an independent attorney to be appointed to represent the class in the awarding of attorney fees.
The American Insurance Association had issued a statement at the time the bill was passed by the legislature, lauding the bill as a "landmark" and adding that it was likely to encourage economic development in the state.
John Marlow, AIA assistant vice president, Southwest Region, had announced that reforms in the bill would "help restore balance and fairness to the civil justice system in Oklahoma and attract new business and jobs to the state."
Among its provisions, the bill:
o Required a conscious decision by potential class action members to include themselves in the class.
o Required that if the plaintiff is using an expert witness to prove liability, the plaintiff file a written opinion of the expert within 60 days of filing the lawsuit showing why the expert believes that liability exists.
Other provisions included in the vetoed bill eliminated damages for joint and several liability and allowed for the admission of evidence showing the plaintiff received compensation for the harm that gave rise to the cause of action, requiring that such sum be deducted from the amount of damages awarded.
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