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May 21, 2009

Henry signs bill changing civil justice system

OKLAHOMA CITY — Everyone claimed victory Thursday as Gov. Brad Henry signed into a law a bill supporters said would curb civil lawsuit costs in Oklahoma.

Henry said the compromise Republican-sponsored bill will cut down on lawsuits without impeding a citizen’s access to the courts.

Among the bill’s changes are a redefining of what constitutes a frivolous lawsuit. It strengthens summary judgment rules to make it easier for a judge to dismiss a lawsuit determined to have no merit before it goes to trial.

The measure would cap non-economic damages, also known as pain and suffering, at $400,000 but allows the limit to be waived in certain circumstances.

In cases of medical malpractice where the cap is lifted, any amount greater than $400,000 could be paid with a reinsurance policy the state would purchase.

The bill calls for a task force to study the details of the policy and payment options prior to implementation of the reinsurance policy in May 2011. It would pay up to $20 million a year to people in cases of gross negligence or severe disfigurement.

Henry, Senate President Pro Tem Glenn Coffee and House Speaker Chris Benge called the bill “historic.”

“This legislation enacts reasonable and responsible reforms that improve the civil justice system without impairing a citizen’s constitutional right to have his or her legitimate grievances appropriately addressed in court,” Henry said.

He called it “perhaps the most comprehensive tort reform measure in state history.”

The measure is very different from the version introduced by Coffee, R-Oklahoma City, and Rep. Dan Sullivan, R-Tulsa. That bill had a so-called “hard cap” on non-economic damages and drew opposition from royalty owners who said it would penalize them on class action lawsuits.

But leaders said the compromise plan had many changes to improve the system and reduce costs.

Besides redefining frivolous lawsuits, it requires a certificate of merit in lawsuits charging professional negligence.

“This is a huge day for Oklahoma,” Coffee said. “Thanks to the good faith efforts on the part of health care and business interests, legislative leadership, the trial bar and royalty owners, we can proudly proclaim that Oklahoma is open for business.

“We have made it possible for Oklahoma to keep our best and brightest physicians, and assure that those legitimately wronged will have their day in court.”

Benge added: “This law represents a truly bipartisan effort between legislative and executive leaders, doctors, trial attorneys, mineral owners, the business community and numerous other affected groups. As with most compromises, this isn’t a perfect bill by our standards, but we believe it is true reform that will ensure access to quality, affordable health care while encouraging economic development and jobs creation in our state.”

HB 1603 will become effective on Nov. 1, 2009. It passed both houses by large bipartisan margins.

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