State Lawmakers Reach Tort Reform Compromise

State leaders have been debating tort reform legislation throughout this year's legislative session and say they've reached a compromise.

Monday, May 11th 2009, 8:44 am

By: News 9


By Alex Cameron, NEWS 9

OKLAHOMA CITY -- Calling this an historic day, Republican lawmakers announced Monday morning they have reached a compromise on key aspects of their tort reform legislation, and now believe the bill will be passed into law.

"We have had an historic effort here of all parties involved coming to an agreement on what we believe is the best comprehensive lawsuit reform bill that fits the needs of Oklahoma,"Rep. Dan Sullivan said.

At a news conference at the Capitol, Senate and House leadership thanked representatives of state trial lawyers and mineral rights owners for coming to the table to negotiate, and said, even though the measure they will now vote on and send to the Governor does not have everything they wanted, it still represents very significant reform of the state's civil justice system.

"We worked very hard on structuring the language on that, and made sure that even though there was a cap in effect, there was a way for Oklahomans to still get access to the courtroom," said Matt Latham with the Oklahoma Association of Justice. 

They said it will send a message that "the state is open for business," and will stop the exodus of doctors to states where malpractice premiums are lower. Perhaps the most significant compromise is the agreement to increase a proposed cap on non-economic damages - so-called "pain and suffering" - from $300,000 to $400,000.

In addition, lawmakers explained, that cap could be lifted in certain circumstances, and where a doctor or medical facility is found to be liable for non-economic damages exceeding $400,000, the difference would be paid out of a $20 million indemnity fund created and funded by the state. Authors of the bill say that is significant because, while it allows for pain and suffering awards to exceed $400,000 in the most egregious cases, it still creates the appearance of a "hard" cap from the perspective of the insurance companies that provide malpractice coverage.

And lawmakers said that should ultimately help bring doctors' insurance premiums down.

"We think that it will not only bring rates down, it will send a message to physicians that 'Yes, we're open for business. We want to practice in Oklahoma,'" said Ken King with the Oklahoma State Medical Association.

The indemnity fund must be set up within two years or the cap does not go into effect. Other compromises include getting rid of a proposal to require plaintiffs to opt "in" to class action lawsuits, rather than opt "out," as the system currently provides, and moderating proposed changes to joint and several liability rules.

The bill will first be heard in the House, then sent on to the Senate, perhaps as early as later this week.

Governor Henry released a statement today "applauding" the compromise, and is expected to sign the bill, assuming it reaches his desk.

Continuing Coverage of the Tort Reform Debate:
- Tort Reform Bill Clears Senate Committee
- Lawmakers Question Tort Reform 
- Passed Tort Reform Bill Sparks Debate at Capitol

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