Tort Reform Defeated In Oklahoma; Progress Continues On Other States

Chicago – Although the difficulty of achieving tort reform can be seen in the recent defeat of HB 3120 in Oklahoma, there are positive signs that meaningful reforms are having an impact across the country, according to the Property Casualty Insurers Association of America (PCI).

"As many legislative sessions reach their midpoint, there have been gains on the tort reform front despite the turn of events in Oklahoma," said David Golden, director of commercial lines for PCI. "The Oklahoma bill was the most comprehensive tort reform effort of the 2006 legislative session. Its defeat is disappointing, but legislators in Florida, Utah, Washington and West Virginia all made incremental moves toward balanced civil justice systems this year."

"Tort reform is important because it can help to spur economic development," said Golden. "The 2006 State Liability Systems Ranking Study conducted for the U.S. Chamber of Commerce shows that continuing legal reforms are the key to improving state business climates. The reforms may very well translate into additional jobs for states like Mississippi, Texas, Missouri, Ohio and Georgia, which all passed significant reforms in the last few years. This is in stark contrast to Oklahoma's ranking in the survey, which has dropped each of the last two years. The repeated failure to implement reform could also have a negative economic consequence for Oklahoma as it competes with neighboring states such as Texas and Missouri, whose improved civil justice climates are attractive to businesses looking to expand."

According to the survey the five best state liability systems are Delaware, Nebraska, Virginia, Iowa and Connecticut. The five worst state liability systems are Hawaii, Alabama, Mississippi (but improved two places this year), Louisiana and West Virginia, which assumes the title of worst state liability system in the country. The study ranked Oklahoma 33rd in the nation.

Oklahoma HB 3120 would have limited fees for attorneys and capped noneconomic damages to $300,000. It also set a 10-year statute of limitations for product liability lawsuits. The Oklahoma bill sought to duplicate Florida's success and eliminate joint and several liability. HB 3120 also addressed obesity litigation, class action filings, asbestos litigation, and punitive damages.

SOURCE: PCI