Lawsuit Reform Measures Advance in Oklahoma House, Senate

Legislation in Oklahoma aimed at eliminating joint and several liability, requiring that juries be provided with information on the tax impact of potential awards, and capping noneconomic damages in lawsuits have advanced in both the House and Senate.

The Oklahoma House Judiciary committee passed Senate Bill 862 and Senate Bill 865, by Rep. Dan Sullivan, R-Tulsa, and Sen. Anthony Sykes, R-Moore, which would eliminate joint and several liability, and require that juries receive accurate information regarding tax impact on awards.

In the Senate, the Rules Committee cleared House Bill 2128, which caps at $350,000 noneconomic damages in civil actions and repeals the inactive indemnity fund.

SB 862, SB 865

Under current law defendants can be held responsible for paying a higher portion of awards beyond the percentage of their fault to plaintiffs, based on their ability to pay. SB 862 would eliminate this practice.

SB 865 would require instruction to juries that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax. The legislation would also require that any exhibit relating to damage awards reflect accurate tax ramifications.

HB 2128

In addition to placing a cap on awards for noneconomic damages, other provisions of HB 2128 include:

• In cases of malice, intent or gross negligence the cap may be lifted;
• Economic damages will not be limited by the legislation;
• The bill upholds an individual’s right to a fair trial and preserve the jury’s discretion on all other elements of judgments.