THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, March 11, 1995 TAG: 9503110301
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: STAFF & WIRE REPORTS
DATELINE: WASHINGTON LENGTH: Long : 141 lines
The House on Friday approved landmark legislation to limit the size of damage awards in civil lawsuits and to raise the level of proof needed to win.
Capping a weeklong drive to overhaul the nation's civil justice system, the House responded to a longtime demand of businesses by restricting the amount consumers could collect for injuries caused by defective products and medical malpractice.
With a 265-161 vote, the House agreed to pre-empt state laws with the new federal standards governing product liability litigation. For the first time, the measure would set a national limit on the amount of punitive damages - the amount awarded to punish defendants for misconduct - in almost all civil cases.
The ceiling would be $250,000, or three times economic damages, whichever is greater. This would apply not only to suits involving defective products, but also to legal action over dog bites, drunken driving and falls in parking lots. But it would not affect suits brought under such federal laws as the Civil Rights Act and the Americans With Disabilities Act.
The bill also would raise the threshold of proof in civil cases. Before punitive damages could be awarded, courts would have to find ``clear and convincing evidence'' that a defendant intended to cause harm or was guilty of a ``conscious, flagrant indifference to the safety of others.''
Democratic opponents argued that the Republican package, including two other bills approved earlier in the week, was too extreme and would effectively shut the courthouse door to the average American.
Robert R. Hatten, a Newport News lawyer who has represented many Hampton Roads shipyard workers in cases alleging debilitating and fatal illnesses from working with asbestos, called the legislation ``absolutely outrageous.''
``America has now adopted the golden rule,'' Hatten said: ``He who has the gold rules, both in court and in Congress. The poor, the disabled, the widowed and the injured in America have just been thrown out of court in favor of the Fortune 500.''
Hatten said hundreds of safety features in today's cars, trucks, lawn mowers and other consumer products came about because of lawsuits or the fear of them. The House-passed legislation would insulate manufacturers from many such suits, he said, and the result would be less safety for consumers.
But supporters said the legislation was critical to corporate competitiveness and would result in lower prices and insurance rates.
Rep. Christopher Cox, R-Calif., a chief sponsor, said the legislation would ``end the patchwork of local laws'' that encourage some lawyers to shop from state to state for friendlier venues to pursue fatter damage awards.
Other sponsors, including Judiciary Committee Chairman Henry Hyde, R-Ill., said the bills would ``put a serious damper on frivolous and fraudulent lawsuits'' jamming both state and federal courts.
The bill now goes to the Senate, where it faces an uncertain fate.
White House spokesman Michael McCurry said Friday that the administration would seek to modify the bill in the Senate. ``We believe that reducing unnecessary and frivolous litigation is an important objective,'' McCurry said. But, he added, the House bill contains provisions ``that don't do enough to protect the interest of American consumers.''
Forty-five Democrats joined House Republicans to approve the Common Sense Product Liability and Legal Reform Act, a key provision in the GOP's ``Contract with America.'' Only six Republicans voted against the measure which, as a result of amendments approved Thursday, goes further than the version initially proposed by GOP leaders.
Friday's action was the culmination of a week of intense debate, with the House passing three measures eagerly sought by the business community to discourage what it has called runaway litigation.
On Tuesday, the House approved legislation to encourage lawsuit settlements by requiring a party to pay an opposing party's legal expenses if it rejects an offer and then fails to win at least as much as that offer in court.
On Wednesday, the House passed a bill making it harder for shareholders to sue a company for securities fraud after its stock price has dropped. MEMO: How local representatives voted:
A ``yes'' vote is a vote to pass the bill.
Herbert H. Bateman, R-Va. No
Owen B. Pickett, D-Va. No
Robert C. Scott, D-Va. No
Norman Sisisky, D-Va. Yes
Eva Clayton, D-N.C. No
Walter Jones Jr., R-N.C. Yes
HOW LAWSUITS WOULD CHANGE
The Common Sense Product Liability and Legal Reform Act was passed by
the House of Representatives Friday, 265-161. Together with related
legislation passed earlier this week, it would impose a variety of new
restrictions on civil lawsuits:
Elimination of implied warranties. To recover damages, a person
injured by a defective product would have to prove that the manufacturer
was negligent, a more difficult and expensive burden of proof than
exists under current law.
The ``loser pays'' rule. Parties in many federal lawsuits would have
to pay the other side's legal fees if they refused a settlement offer
and wound up getting less through a trial.
Elimination of joint and several liability. Individual manufacturers
could be held liable for no more than their share of any harm suffered
by an injured plaintiff. To recover full damages, every contributor to
the injury would have to be named in the suit.
Limiting punitive damages. Punitive damages in all state and federal
civil lawsuits - those awarded over and above actual economic losses -
would be limited to $250,000 or three times the economic damages,
whichever is greater.
Medical malpractice limits. Damages for pain and suffering in medical
malpractice cases would be limited to $250,000.
LIMITING LAWSUITS
The House legislation passed Frioday would place sweeping limits on
high-profile lawsuits like these:
Auto safety. Courts have awarded hundreds of millions in damages for
injuries and deaths resulting from auto accidents in which manufacturing
defects were alleged. One of the most famous cases involved the Ford
Pinto, in which the gas tank was allegedly prone to rupture in rear-end
collisions.
Asbestos. Thousands of Hampton Roads shipyard workers were exposed to
asbestos on the job during the 1940s, '50s and '60s, and by the late
1970s, federal and state courts in the region were inundated with
personal-injury suits. Nationwide, damage awards and settlements reached
into the billions.
Breast implants. Last year, medical companies agreed to a $4.25
billion settlement in cases brought by women claiming to have suffered
from diseases related to silicone breast implants. It was the largest
product liability settlement in U.S. history.
Dalkon Shield. The Dalkon Shield intrauterine device, which was taken
off the market in 1974, prompted injury claims from 325,000 women who
blamed it for thousands of hysterectomies, spontaneous abortions,
painful infections, birth defects and at least 18 deaths. The
manufacturer, Richmond-based A.H. Robins Co., filed for bankruptcy
protection in 1985, and a $2.5 billion trust fund was established to
compensate victims.
ILLUSTRATION: Photos
Auto safety
Asbestos
Breast implants
Dalkon Shield
KEYWORDS: CIVIL SUITS CIVIL JUSTICE SYSTEM PRODUCT LIABILITY by CNB