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House Votes to Restore Corman's Landmark "Fair Share Act"
Lawsuit Reform Measure Now
Before the Governor
HARRISBURG -- Last
night the state House voted to restore the landmark "Fair Share Act" lawsuit
reform measure and sent the bill to the Governor. Sen. Jake Corman (R-34), the
bill's author, said it represents a major victory for employers, hospitals and
state residents and urged Governor Rendell to sign the bill into law.
Corman said Senate Bill 435
brings Pennsylvania in line with lawsuit reform measures passed in 44 other
states by eliminating "joint and severability" in cases where a defendant is
found to be less than 60 percent responsible.
"Pennsylvania's current
liability system is completely unfair and unpredictable, and that seriously
impedes our ability to attract jobs and increases health care costs. In fact,
there are very few commercial insurers left in Pennsylvania that cover
hospitals," said Corman. "With this legislation becoming law, we become the
45th state in the United States to bring basic fairness to our judicial system
and protect victims and businesses at the same time."
Under joint and several
liability, anyone found even 1, 5 or 10 percent liable in a civil suit can be
held 100 percent financially responsible. A plaintiff may recover the full
amount of an award from any defendant. The result is that litigants often go
after people with "deep pockets," putting Pennsylvania at an economic
disadvantage with other states.
Senate Bill 435 provides
that a defendant only is responsible for its proportionate share, said Corman.
The legislation eliminates
joint liability for defendants in civil cases found to be less than 60 percent
liable and implements a system of comparative responsibility in which a
defendant is responsible for paying only his fair share of the damages. That
means if a party is responsible for 10 percent of the fault, that party would be
accountable for paying only 10 percent of the total award.
"Under the leadership of
Rep. Sam Smith (R-Jefferson) in the House, we have taken another step in
realizing for the first time, bona fide lawsuit reform in this Commonwealth,"
said Corman. "This is an important piece of legislation for Pennsylvania's
business climate. It also requires Governor Rendell to reaffirm his commitment
to this lawsuit reform that he made as a candidate and sign this legislation now
that it is before him for re-enactment."
Pennsylvania enacted similar
reform in 2002 -- but Commonwealth Court overturned the law on procedural
grounds.
"The court ruled only on the
process in which Act 57 of 2002 was enacted – not the merits of the
legislation," said Corman. "Restoring this reform will restore fairness and
common sense to litigation in the Commonwealth."
Senator Corman's SB 435
restores the Fair Share Act to statute in a single piece of legislation that
satisfies the Court's objection.
"In 2002, the Fair Share Act
overwhelmingly passed in the General Assembly and became the first significant
civil justice reform enacted in decades," Corman said. "Again, I have united
with medical professionals, hospitals, employers and state residents to re-enact
this important lawsuit reform measure and I urge Governor Rendell to join us."
Senate Bill 435 passed in
the Senate by a vote of 32-18 on December 6, 2005, and in the House by a vote of
118-81 on March 14, 2006.
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