Blog Post

What Impact Could the Federal Tort Reform Proposal Have on Personal Injury Judgments?

  • By Admin
  • 10 Aug, 2017
Work Injury — Construction Accident in Aiken, SC
With healthcare costs continuing to rise, tort reform has been a hot topic in the news – so hot that the U.S. House of Representatives recently passed House Resolution 985 (HR 985), a bill designed to limit recovery and sometimes even litigation in certain types of personal injury lawsuits.

Although this bill must still pass muster with the Senate Judiciary Committee before being sent to the president and potentially signed into law, it represents a key part of Congress's plan to make the legal market more business-friendly and enjoys a broad base of support. What could passage of this bill (or a similar one) mean for a current or future personal injury claim?

Read on to learn more about how this type of tort reform could affect your ability to proceed in certain types of personal injury cases.

Goals of HR 985

The stated purpose of HR 985 is in part to reduce the costs borne by insurance companies and businesses in defending against class action tort lawsuits that don't allege an actual injury against all plaintiffs. Under this new law, a plaintiff seeking to sue a diet drug manufacturer for failing to disclose certain side effects, would have trouble certifying a class of plaintiffs for the purpose of a class action lawsuit unless each of the other potential plaintiffs had suffered a similar type of injury.

Under current law, a plaintiff can often certify an entire class of putative plaintiffs, all of whom are entitled to recover from a settlement or judgment, without alleging that all these additional plaintiffs suffered similar injuries. This can allow class action lawsuits to proceed even when a vast majority of the certified class suffered no recognizable injury, and can often inflate judgments simply due to the larger number of plaintiffs.

For example, if a defective product caused injuries to fewer than a dozen people but was sold to hundreds of thousands, certifying a class of all customers is likely to lead to a larger recovery than certifying the much smaller group of only those plaintiffs who suffered physical injuries.

Types of Claims Affected

The thrust of HR 985 is toward limiting the scope of class action certifications, so it shouldn't affect the majority of personal injury claims brought on behalf of an individual or even a non-class-action group.

However, if you or a loved one is suffering from mesothelioma caused by asbestos exposure, you should qualify to recover from a national mesothelioma trust fund upon submission of your claim. This bill would change the frequency with which mesothelioma claims are audited, placing greater oversight on the funds being paid out to ensure no duplications or overpayments are occurring.

Impact on Personal Injury Plaintiffs

Because this bill still has some time (and hurdles) before it may become law, it shouldn't have any impact on currently pending personal injury claims or those filed before the law's effective date. Classes that are certified before any tort reform law is signed should remain intact, although it's unclear whether defendants will be able to petition for appeal of the class certification if the law changes mid-case.

It's important to remain aware of the constant pressure for tort reform at both the state and federal levels of government. If you find yourself suffering physical, financial, or other losses due to another party's negligent conduct, you'll want to contact an attorney quickly. Filing your case well before the expiration of the statute of limitations can help you avoid being caught in the crossfire of future attempts at tort reform that could significantly restrict your ability to recover damages from the person, company, or parties who harmed you.
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