Alabama small businesses deserve the Lawsuit Fairness Act of 2024 (H.B. 420/S.293.)
Lawsuit abuse is a hidden tax on small businesses in Alabama. Fixing these problems is not only about making the legal system work correctly — it is about relieving small businesses from unfair financial burdens.
In Alabama, the financial impact of lawsuit abuse leads to the loss of nearly 35,000 jobs across industries and adds up to $2.3 billion lost in personal income.
Lawsuit abuse in Alabama costs the average Alabamian $731 per year and the average family $1,016 per year.
If passed by the state legislature and signed into law, the Lawsuit Fairness Act would:
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Impose reporting requirements on companies financing lawsuits
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Protect employers who admit fault in direct negligence cases by limiting the claims a defendant can file for the case
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Reduce defendants’ liability in cases involving independent contractors
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Ensure cases are considered in the counties where accidents take place
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Restrict advertisements from stating payouts received in lawsuits unless using the exact amount awarded from the settlement
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Allow evidence of seatbelt use to be admissible in personal injury cases
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Restrict medical bill expenses to verified payments or reasonably estimated amounts
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Cap emotional and distress damages to $1 million
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Assert that experts testifying must meet national standards to permit their testimony in court
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