Lawsuit Reform Measures Advance in Oklahoma House, Senate

Oklahoma state lawmakers seem to be serious about reforming the state’s tort environment. Legislation 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. The measures are part of a reform package supported by Gov. Mary Fallin, House Speaker Kris Steele and Senate President Pro-Tempore Brian Bingman.

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

SB 862, SB 865

According to information released by the Oklahoma House of Representatives, 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 instruct juries that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax. The measure would also require that any exhibit relating to damage awards shall reflect accurate tax ramifications.

Both measures will now be considered by the full House of Representatives.

HB 2128

Currently Oklahoma does not have a cap on noneconomic damages in lawsuits; HB 2128 would cap such awards at $350,000.

Other key 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 will uphold an individual’s right to a fair trial and preserve the jury’s discretion on all other elements of judgments; including loss of income, medical expenses or other things that could be characterized as economic damages.

The legislation now moves on the full Senate for further consideration.

Source: Oklahoma Legislature

Topics Lawsuits Legislation Oklahoma Politics