Tort Reform
Position: NCCBI
applauds the North Carolina General Assembly for the actions taken in
1995 to enact common sense tort reforms such as limiting punitive
damages, and revising our products liability statute. NCCBI believes
that these were important first steps toward bringing common sense and
balance back to our civil justice system. NCCBI would support further
changes to eliminate punitive damages, limit non-economic damages, end
the collateral source rule, and provide a right of subrogation to
health insurers and others that may have paid a portion of the damages
suffered by an injured plaintiff.
Explanation:
Punitive
Damages. In 1995, the General
Assembly enacted legislation limiting punitive damages. That
legislation went a long way toward correcting the problems caused by
punitive damages in our civil justice system, particularly encouraging
litigation and enriching plaintiffs and their attorneys well beyond
any amount lost by the plaintiff. However, by definition, any punitive
damage award is in addition to what is necessary to compensate a
plaintiff for the injuries sustained and, as such, is a windfall to
the plaintiff and his or her attorney. The general public pays for
these windfalls through increased product costs, insurance costs, and
either increased taxes or decreased public services, or both. These
costs to the public rarely produce a public benefit. The usual
justification put forth for punitive damages is to deter and punish
intentional or malicious conduct. Yet, deterrence punishment for such
conduct is properly the province of our criminal courts, where fines
and probationary terms can be put to public benefit. The civil courts
are not the proper forum for deciding punishments.
Non-Economic
Damage. Under our current system of
civil justice, a plaintiff may attempt to recover compensatory damages
that include past and future medical expenses, past and future lost
wages, and "non-economic" damages, which are those amounts
awarded to the plaintiff and that the defendant must pay to compensate
plaintiff for pain and suffering the plaintiff claims to have endured
as a result of the defendant's conduct. These damages by their very
nature are purely speculative. There is no way for a jury to
objectively measure pain and suffering and, as a result, the award of
such damages is merely a guessing game determined largely by the
amount of sympathy the jurors may feel for the plaintiff. These
damages are the primary cause of many lawsuits that could otherwise be
easily settled without litigation. "Pain and suffering"
damage claims also cause inflated settlements. Other states have
recognized this and passed legislation limiting or restricting
non-economic damages. NCCBI urges the General Assembly to enact
legislation to provide objective guidance to juries in deciding the
amount of non-economic damages to award, such as caps or limits set as
a multiple of medical expenses. Such a system would preserve the
plaintiffs right to fair and reasonable compensation for damages
actually incurred, including some compensation for pain and suffering,
while insuring that jurors act from reason and evidence, and not
sympathy.
Collateral
Source Rule. When determining a
compensatory damage award, the collateral source rule prohibits both
the judge and jury from considering the fact that the plaintiff has
already been compensated for much of his or her financial loss, such
as payment of medical costs through health insurance or payment of
income replacement benefits through a disability insurance plan or
workers' compensation plan. The goal of the civil justice system is to
reasonably and fairly compensate the plaintiff for actual losses. When
a plaintiff receives an award for medical bills that have already been
paid by another source, the plaintiff and the plaintiffs attorney
receive a windfall. These multiple recoveries contribute to the rising
costs of medical care and health and liability insurance. Elimination
of these multiple recoveries by abolishing the collateral source rule
would be an important step in controlling health and liability
insurance costs.
Subrogation. As an
alternative to eliminating the collateral source rule, the General
Assembly should consider enacting a statute to specifically allow
health insurers, disability insurers, and others that may pay a
portion of an injured party's expenses pursuant to a contract to
recover that money paid to the plaintiff out of any recovery the
plaintiff receives from a negligent third party. This would accomplish
the same goal as eliminating the collateral source rule; that being,
to control health insurance costs by preventing double recoveries that
serve only to enrich a plaintiff or his or her attorney.
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Judicial Selection And Retention In
North Carolina
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Workers' Compensation Reform
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Future Of The Courts Commission
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Business Court
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Contributory Negligence
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Joint And Several Liability
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