Bill to Cap Civil Damages Signed by Oklahoma Governor

Oklahoma Gov. Mary Fallin has signed a package of bills aimed at overhauling the state’s civil justice system, including a bill that caps damages for pain and suffering in lawsuits at $350,000.

House Bill 2128, which contains the cap on noneconomic damages, was approved in the state Senate on April 4. Republican leaders say the bill is a crucial part of an overhaul needed to reduce doctors’ and businesses’ liability costs. But opponents, mostly Democrats, say the bill violates the constitution and contends that juries, which hear all of the facts in a case, should decide how much a plaintiff should receive, not politicians.

The cap does not affect other damages like lost income and medical expenses. It also provides the $350,000 limit can be lifted in cases where the defendant is determined to have acted with gross negligence, reckless disregard or malicious conduct.

The Senate voted 30-14 to approve the bill, mostly along party lines.

Gov. Fallin also signed two other measures that are part of the reform package: Senate Bill 862 and Senate Bill 865.

SB 862 eliminates joint and several liability, sometimes known as the “deep pocket” rule, where each and every defendant in a tort lawsuit is liable for the entire amount of a plaintiff’s damage regardless of their degree of fault. SB 862 eliminates the “deep pocket” consideration, ensuring that plaintiffs seek defendants who are most at fault rather than defendants with the most financial assets.

SB 865 requires that juries be instructed in civil cases that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax; and the jury should not consider income taxes when determining a proper compensation award.

Topics Oklahoma