Tuesday, February 21, 2012

Tennessee tort-reform advocates press for "losers pays."

The Tennessean (2/19, Gee) reported, "Unsatisfied with landmark tort reform legislation that Gov. Bill Haslam and Republican lawmakers successfully enacted last year, business, insurance and health-care interests continue to push for laws that will reduce their exposure to civil lawsuits." The Tennessee Civil Justice Act of 2011 capped non-economic damages at $750,000, punitive damages at $500,000 (with some exceptions), and curbed claims under the state's Consumer Protection Act. Tennesseans for Economic Growth, the business coalition that worked for that law, backs several "loser-pays" bills targeting civil case litigants who reject proposed settlements. These would make parties losing motions to dismiss pay opposing parties' litigation costs, and make plaintiffs pay defendants' costs if they spurn a settlement offer, then at trail win less than 75% of the offer, and likewise make defendants pay when plaintiffs win over 125% of a rejected settlement amount. Another proposal would shield employers from punitive damages when employees act without their knowledge.

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