Oklahoma Gov. Signs Compromise Tort Reform Legislation
Oklahoma Gov. Brad Henry has signed into law long-sought tort reform legislation aimed at curbing frivolous lawsuits and reducing costs associated with the justice system.
Henry said House Bill 1603 by Rep. Dan Sullivan and Senate President Pro Tempore Glenn Coffee will help improve the legal process without impeding a citizen’s access to the courts.
Among other things, the bill caps non-economic damages, eliminates joint and several liability, caps appeal bonds at $25 million, and contains asbestos/silicosis reforms, while providing consumer safeguards for Oklaho-mans with legitimate claims.
Noneconomic damages (“pain and suffering” awards) would be capped at $400,000 outside of exceptional circumstances. In rare cases involving medical malpractice where the cap is lifted, any amount above $400,000 could be paid with a reinsurance policy purchased by the state. The bill creates a task force to study the details of the policy and payment options prior to implementation.
HB 1603 goes into effect Nov. 1, 2009.
The Democratic governor and Republican lawmakers in Okla-homa have often been at odds over the issue of how to implement tort reform in the state.
For more than a decade House and Senate Republicans have tried to reform Oklahoma’s justice system, according to information released by the House. They say frivolous lawsuits in-crease health care costs, drive talented doctors out of the state because of high malpractice insurance rates and indicate to companies seeking to relocate that Oklahoma is not business-friendly.
Gov. Henry said the measure “enacts reasonable and responsible reforms that improve the civil justice system without impairing a citizen’s constitutional right to have his or her legitimate grievances appropriately addressed in court.”
Senate President Pro Tem Glenn Coffee, who previously has criticized the governor for his views on lawsuit reform, thanked Henry for signing the legislation, calling it “a huge day for Oklahoma.”
The American Insurance Association, an insurer trade group, praised the new law, noting it is a compromise be-tween lawmakers, business advocates, trial lawyers and doctors.