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Mowery & Piccola Reintroduce Lawsuit Reform
Measure:
Joint & Several Liability Legal Doctrine
HARRISBURG -- Senators
Hal Mowery (R-31) and Jeff Piccola (R-15) reacted today to recent challenges in
the courts by introducing for the second time a major lawsuit reform measure
that replaces “joint and several liability” with “proportional liability.”
Senate Bill 1078 represents a bipartisan effort of 29 cosponsors and builds upon
the Senate’s recent passage of the Constitutional amendment to permit caps on
non-economic damages.
“We are concerned about the procedural question in
the courts, which could jeopardize the most significant lawsuit abuse reform of
the last 30 years. They’re questioning the procedure not the merits,” said
Mowery.
“Based on the litigation that is pending before the
courts, we need to be sure that the substance of the legislation is carried to
fruition even if the courts have problems with how the original law was passed
in 2002. We need to maintain the reforms that we previously adopted,” Piccola
said.
Under joint and several liability, anyone found even
1, 5 or 10 percent liable in a civil suit can be held 100 percent financially
responsible, the legislators said. Thus, a plaintiff may recover the full
amount of an award from any defendant. The result is that litigants often go
after people with “deep pockets,” putting Pennsylvania at a disadvantage --
especially when we are trying to attract, create, and retain jobs. If the
legislation by Mowery and Piccola is approved, defendants found to be at fault
would continue to be held liable for their proportionate share of damages only.
“This legislation is about supporting economic
development and preserving our tax base,” said Mowery. “It’s about enhancing
Pennsylvania’s ability to create and maintain jobs. It’s about providing our
constituents with opportunity and security. And it’s about fairness.”
“Joint and several liability is a job killer in
Pennsylvania,” said Piccola. “This legislation was long overdue and will ensure
fairness, common sense, and personal responsibility within our civil justice
system.”
Among the hardest hit by joint and several liability
are health care facilities. “Hospitals may be named in a suit simply because
they have insurance coverage,” said Piccola. “In the current climate, premiums
continue to escalate while the number of insurers decreases.”
“Five commercial carriers that insured more than
half of the hospitals and health systems in Pennsylvania have left the market in
2002. Hospitals continue to struggle to find other carriers and this has
devastating consequences,” said Mowery.
The unfairness of joint and several liability was
highlighted when Crown, Cork, and Seal, a major employer in Pennsylvania, was
saddled with asbestos liability because of a company it acquired for less than
90 days. Although Crown, Cork and Seal never manufactured or produced asbestos,
the company faced over $700 million in payouts. “The legislature needs to
provide relief from the archaic doctrine of joint and several liability. We
need to protect Pennsylvania employers – hospitals and other job creators,”
Mowery said.
“We need
to avoid the fear and uncertainty that it may be overturned like the Crown,
Cork, and Seal legislation. This will help to end decades of lawsuit abuse in
Pennsylvania, which is good news for everyone.”
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