Issue Overview: We've all heard about the label on the hair dryer warning not to use while sleeping or the label on the baby carriage warning not fold with a baby in it. While providing humorous antidotes to share with friends and family, the underlying message of these labels and other humorous stories of wacky lawsuits are a sobering reflection of today's society and a legal system that has gone awry. Many times, legitimate claims become victim to an overburdened system that is in need of common sense reforms.
Many small businesses become innocent victims of this sue-thy-neighbor mentality. Take a retailer who is brought into a lawsuit simply because a product was purchased at his or her store or the manufacturer who was sued for negligence even though a safety guard was removed by the injured plaintiff. This environment is costly and unfair to small businesses as they struggle to survive in today's competitive marketplace.
Additionally, many physicians left the state and many hospitals and health systems faced closing their doors because of skyrocketing medical malpractice insurance premiums due to the exorbitant costs of lawsuit abuse.
NFIB Position: NFIB is actively pursuing legislation that would help restore fairness, common sense and personal responsibility to Pennsylvania's legal system. Specifically, NFIB members support the following statutory changes to Pennsylvania's civil justice system:
- Enacting an innocent sellers provision to protect from liability retailers who sell a product and are unaware of any defects in that product;
- Placing caps on non-economic damage awards;
- Enacting a statute of repose that places a reasonable time limit on the number of years that a manufacturer may be held liable for their product.
Issue Status: 2002 Action: Fair share act – first victory!
In 2002, NFIB/Pennsylvania fought the trial lawyers and won passage of SB 1089 – the "Fair Share Act" – the most dramatic reforms to Pennsylvania's civil justice system in more than 50 years.
The new law modifies the legal doctrine of joint and several liability (which basically says that even if you are only one percent at fault, you may be held 100 percent liable for damages). Under the reforms included in the "Fair Share Act," defendants who are found to be less than 60 percent liable would pay damages proportionate to their overall liability.
Additionally, the state Supreme Court changed a rule that will make it easier for defendants targeted by frivolous lawsuits to have their cases dismissed and obtain financial penalties from those who file them.
The change approved by the court allows any party to a case to raise the issue of whether it is frivolous while the case is pending. The judge could dismiss all or part of the case, impose a fine, and in some instances require the person who filed the frivolous claim to pay the defendant's legal fees.
Combined with the Fair Share Act, these changes represent the most substantial and dramatic reforms to Pennsylvania's civil justice system in a half-century and will go a long way to make our justice system fair. But there's still more to do.
2004 Action: Capping Lottery-Sized Jury Awards
Despite hundreds of letters from small business owners and others, the state Senate failed 23-27, to pass the Corman Amendment to Senate Bill 9. The Corman Amendment, offered by state Sen. Jake Corman (R-Centre) provided for a broad-based Constitutional Amendment that would have allowed voters to decide whether to cap excessive non-economic damage awards in all civil liability cases, including protections for small business. The Senate later passed 28-22, a proposal sponsored by state Sen. Jim Rhoades (R-Schuylkill) that was limited only to medical malpractice cases. The measure now goes to the state House. Below is a roll call of how senators voted on the Corman amendment, the Rhoades amendment and final passage of Senate Bill 9.
Corman amendment No. A-0348 (Broad-based Cap Amendment) FAILED 23-27
Voting yes: Armstrong, Conti, Corman, Dent, Gordner, Madigan, Mowery, Orie, Piccola, Pippy, Punt, Rafferty, Rhoades, Robbins, Scarnati, Thompson, Tomlinson, Waugh, Wenger, Don White, Connie Williams, Wonderling, Wozniak.
Voting no: Boscola, Brightbill, Costa, Earll, Erickson, Ferlo, Fumo, Greenleaf, Hughes, Jubelirer, Kasunic, Kitchen, Kukovich, LaValle, Lemmond, Logan, Mellow, Musto, O'Pake, Pileggi, Schwartz, Stack, Stout, Tartaglione, Wagner, Mary Jo White, Anthony Williams.
Rhoades amendment No. A-0524 (Medical-Only Cap Amendment) -- PASSED 28-22
Voting yes: Armstrong, Boscola, Brightbill, Conti, Corman, Dent, Earll, Gordner, Lemmond, Madigan, Mowery, Orie, Piccola, Pippy, Punt, Rafferty, Rhoades, Robbins, Scarnati, Thompson, Tomlinson, Waugh, Wenger, Don White, Mary Jo White, Connie Williams, Wonderling, Wozniak.
Voting no: Costa, Erickson, Ferlo, Fumo, Greenleaf, Hughes, Jubelirer, Kasunic, Kitchen, Kukovich, LaValle, Logan, Mellow, Musto, O'Pake, Pileggi, Schwartz, Stack, Stout, Tartaglione, Wagner, Anthony Williams.
Final passage of SB9 (Medical-only Cap) PASSED 30-20
Voting yes: Armstrong, Boscola, Brightbill, Conti, Corman, Dent, Earll, Erickson, Gordner, Greenleaf, Lemmond, Madigan, Mowery, Orie, Piccola, Pippy, Punt, Rafferty, Rhoades, Robbins, Scarnati, Thompson, Tomlinson, Waugh, Wenger, Don White, Mary Jo White, Connie Williams, Wonderling, Wozniak.
Voting no: Costa, Ferlo, Fumo, Hughes, Jubelirer, Kasunic, Kitchen, Kukovich, LaValle, Logan, Mellow, Musto, O'Pake, Pileggi, Schwartz, Stack, Stout, Tartaglione, Wagner, Anthony Williams.
Other Lawsuit Abuse Reform Measures, included:
HB 1983 sponsored by Rep. Scott Boyd (R-Lancaster) and SB 725, sponsored by Sen. Joe Scarnati (r-Jefferson) would protect from liability retailers who sell a product and are unaware of any defects in that product. No action was taken on these measures;
HB 1907, sponsored by Rep. Gordon Denlinger (R-Lancaster) and SB 595, sponsored by Sen. Mary Jo White (R-Venango) would enact a statute of repose that places a reasonable time limit on the number of years that a manufacturer may be held liable for their product. No action was taken on these measures; and
SB 806 sponsored by Sen. Jeff Piccola (R-Dauphin) would establish a sliding scale for attorney's contingency fees. No action was taken on these measures
2005 Action: NFIB again will work with our allies in the state legislature to lead the fight for sensible lawsuit abuse reform.
What to Do: Contact the governor and your House and Senate members. Urge them to support legislation that will give Pennsylvanians sensible lawsuit abuse reform.
Join the Fight for Lawsuit Abuse Reform! Your voice as a small-business person is among the most credible in the fight to bring fairness and common sense to our civil justice system. Please contact NFIB/Pennsylvania State Director Kevin Shivers. We'll add you to our list of small-business owners who are fighting for legal reform, and include you in important mailings related to our legislative and political work.
