N.J. Gov. Vetoes Bill Expanding Lawsuit Damages

New Jersey Democratic Gov. Jon Corzine, has vetoed legislation sought by trial lawyers that would have expanded the type of damages that could be claimed in wrongful death cases.

The bill, "Senate Committee Substitute for Senate Bill No. 176," would have expanded the types of damages allowed in wrongful death actions beyond "pecuniary" losses to include injuries resulting from 'mental anguish, emotional pain and suffering, loss of society and loss of companionship.'"

The current standard has been New Jersey law for 130 years.

In vetoing the bill Tuesday by declining to sign it, Gov. Corzine said, "I do not believe that this bill in its current form strikes a fair balance that would avoid using a strict monetary valuation of a person's life while also addressing the adverse effect of allowing unlimited and unpredictable damages."

By exercising what is known as a pocket veto, Gov. Corzine effectively barred the Legislature an opportunity to override his action.

In his veto message, the governor "encouraged" the Legislature to revisit the bill in the session that began last Tuesday and come up with a version he could sign.

One of the factors Gov. Corzine noted in vetoing the bill is that allowing for unlimited damages based on emotional anguish or pain and suffering could potentially have a significant impact on state and local budgets, "since government entities are not infrequently named as defendants in wrongful death suits, and there are similar concerns as the state undertakes efforts to attract and grow businesses here."

Michael Ferrara Jr., an attorney from Cherry Hill, N.J., and a past president of the New Jersey Trial Lawyer's Association, said he expects the bill to be re-introduced this session.

"Supporters of the bill were shocked that the governor would favor big business, insurance and hospital lobbies over the rights of everyday citizens and grieving families," Mr. Ferrara said.

"We would have expected this from a Republican governor, but never from Governor Corzine, who always lined up against these moneyed interests when he was a U. S. senator."

A staff official of the Property Casualty Insurers Association of America lauded the governor's decision.

"We urged the governor to veto the legislation because it would have inappropriately expanded the criteria of who may sue under a wrongful death action and made it difficult to compensate those who truly suffer from a wrongful death of a loved one," said Richard Stokes, PCI regional manager and counsel.

The bill was also strongly opposed by the pharmaceutical industry, doctors and hospitals, and big business as well as insurance companies. Ferrara argued that they wrongly contended "the bill will drive business out of New Jersey and raise medical malpractice premiums."