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Tort Reform - January 2005
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Ohio Senate Bill 80 Summary: Tort Reform

On Dec. 9, the Ohio General Assembly successfully passed Senate Bill 80, establishing comprehensive tort reform for Ohio. The bill balances protection and compensation for those who have been harmed by negligence, while protecting the rights of defendants.  While these reforms are steps in the right direction, it is unlikely that they will have a significant impact on the number of medical malpractice claims in Ohio or the cost of professional liability insurance premiums.

Portions of the bill which directly impact medical malpractice cases include:

Caps on Non-Economic Damages
The bill places caps on noneconomic damages in cases involving non-catastrophic injuries in all tort actions. The caps would be the greater of $250,000, or three times economic loss up to $350,000, and a maximum of $500,000 per occurrence.

For cases involving catastrophic injuries, the bill implements evidentiary procedures to specify that certain evidence related to the defendant’s conduct cannot be submitted to the jury when considering whether non-economic damages should be awarded. In addition, the bill creates a new post-trial motion that allows defendants to argue for the reduction of damages in catastrophic cases if the defendant believes the award is excessive. (See reverse side for a definition of catastrophic injury.)

Caps on Punitive Damages
The bill places caps on punitive damages at not more than two times the amount of compensatory damages.  For small employers (defined as less than 100 permanent full-time employees, or 500 employees for manufacturers), caps would be the lesser of two times compensatory damages or 10 percent of net worth not to exceed $350,000.  Caps would not apply if, based on the same conduct, the defendant has been convicted of a felony crime involving intent.
Bifurcated Trial
If punitive damages are requested by the plaintiff in a jury trial, the trial is split into two stages – one to consider whether to award compensatory damages, the next to consider whether punitive damages should be awarded. This trial bifurcation only applies to jury trials.
Jury Instruction on Damages
Allows the jury to be instructed about which damages are subject to taxation and which damages are not.

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