The Tennessean: Workers' Comp Changes Likely on Horizon

Tennessee companies could see a reduction in workers' compensation premiums later this year according to The Tennessean, depending on the outcome of complex negotiations over the rates doctors receive for treating workers' comp patients. Several business groups support the measure, saying that an overall rate reduction would help make Tennessee more competitive with neighboring states, but many in the health care community say cuts would hurt medical providers and even force some of them to stop treating patients. Gov. Bill Haslam chose not to tackle workers' compensation reform this year, but is exploring major changes. Many observers expect this will be a major issue for the legislature in 2013.

Read the full story at the Tennessean's website.

House GOP Pushing Med Mal as Budget Fix

Republican leaders in the U.S. House of Representatives have revived a medical malpractice bill that caps non-economic damages at $250,000 and limits contingency fees as a way to reduce the federal budget and avoid cuts in defense spending. The House passed the bill in March, even though President Barack Obama said he would veto it and House Democrats say it will be dead on arrival in the Senate. But the bill was revisited during budget discussions this week after the Congressional Budget Office estimated it would reduce federal healthcare costs.

Read the full story at The Blog of Legal Times

Bill to Limit Doctor Liability Criticized

A bill that would give hospitals and emergency room doctors an additional layer of protection from law suits is being criticized for setting such a high standard for negligent behavior that there would be no accountability or protection for patients. Tennessee Association for Justice President Keith Williams said that if the bill passes, “In effect, a doctor would have no responsibility for careless errors that could ultimately cost you your life.”

Read more at the Knoxnews’ Humphrey on the Hill blog.

Courts a threat to new med mal law, TMA leader says

A Tennessee Medical Association leader this week singled out the Tennessee judiciary as a threat to the state's new medical liability law. Appearing with U.S. Rep. Marsha Blackburn, R-Tenn., at a healthcare town hall meeting this week, Dr. Keith G. Anderson -- a cardiologist and vice chairman of the Tennessee Medical Association -- said he fears Tennessee's "very liberal" and "very claims-oriented" judiciary. He singled out Tennessee Supreme Court Chief Justice Cornelia Clark, who he said "is a claims malpractice attorney." Anderson went on to say that the medical association's concern is "that there will be a case that arises that goes before the Tennessee Supreme Court that may overturn the tort reforms based on their constitutionality methodology." Instead of risking that outcome, Anderson said that an amendment to the state's Constitution or a federal law that would trump state law is needed.

The Memphis Commercial Appeal reports on the event

'Due care' law went into effect July 1

A new state law that will levy penalties for failure to "exercise due care" while driving a motor vehicle went into effect July 1. According to the bill's sponsor, the law also makes it easier for those injured, or the survivors of those killed, to prevail in civil lawsuits by "making it clear that the law requires people in a car to exercise proper driving restraint around people on a bicycle and pedestrians."

The Murfreesboro Post has the full story, which you can read here: 'Sorry I Didn’t See You' is no longer a legal excuse

General Assembly passes major legislation, including the Civil Justice Act, and looks toward adjournment

The Tennessee General Assembly worked in marathon floor and committee sessions this week towards the conclusion of the 2011 legislative session. Among major legislation approved by the State Senate is a civil justice law sponsors say will establish a climate to help create jobs in Tennessee, several measures cracking down on child sex offenders and those who engage in human trafficking, and state's rights legislation.

According to its sponsors, the Tennessee Civil Justice Act of 2011 is designed to provide certainty and predictability for businesses, while ensuring that injured plaintiffs receive all of the economic, quantifiable damages they suffer. The bill's sponsors say the state's current civil justice system puts the state at a competitive disadvantage when it comes to attracting new businesses and jobs. Opponents of the bill say it is harmful to injured plaintiffs by limiting the amount they can recover and that Tennessee has not seen runaway jury verdicts as in other states.

Key provisions of Senate Bill 1522 include:
- The bill limits the maximum appeal bond amount from $75 million to $25 million or 125 percent of the judgment amount.
- It defines two components of compensatory damages: economic and non-economic damages.
- The measure places a cap on non-economic damages, which are subjective damages like pain and suffering, at $750,000 per injured plaintiff for both healthcare liability action and other personal injury actions. However, if the harm suffered is intentional, the caps would not apply.
- As amended, the bill raises the cap to $1.0 million if the plaintiff becomes a paraplegic or quadriplegic because of spinal cord injury, sustains third degree burns over 40 percent or more of his or her body or face, has an amputation of a hand or foot, or wrongfully dies leaving one or more minor children.
- There is no cap, under the measure, on economic damages and any damages that can be objectively quantified may be recovered.
- Caps punitive damages, which must be proved by clear and convincing evidence, at two times compensatory damage or $500,000, whichever is greater, unless the defendant intended to injure the plaintiff, was under the influence of drugs or alcohol, or intentionally falsified records to avoid liability.
- Prevents punitive damages in products liability actions, unless the seller had substantial control over the design or manufacturing of the product or had actual knowledge of the defect in the product at the time it was sold.

The bill now goes back to the House of Representatives for approval of an amendment before it is sent to the governor for his signature. It will take effect October 1, 2011, and apply to all liability actions for injuries accruing after that date.

Opinion: Bills to limit malpractice awards not needed

Former judge and current Memphis lawyer D'Army Bailey writes in an opinion piece today about pending legislation that would limit malpractice awards. The "proposals go well beyond severely limiting Tennessee residents' rights to fair and adequate compensation," he says. "They are designed to protect large corporations and negligent doctors who cause serious harm." Even Gov. Bill Haslam, who is pushing most of these legislative changes, acknowledges they are unnecessary, he continues.

Read his guest column in the Commercial Appeal: 
http://www.commercialappeal.com/news/2011/mar/04/guest-column-haslam-wants-to-curb-malpractice/

General Assembly News: TBA bill aimed at protecting clients, lawyers

Companies that advance money to plaintiffs involved in personal injury lawsuits are lobbying in legislatures across the country to ensure their industry is not subject to usury limits on interest rates or other state laws that protect borrowers.

In Tennessee, the effort to put some controls in place is being led by the Tennessee Bar Association. The TBA initiative, coming from the Tort and Insurance Practice Section, is focused not on the intra-industry fight, but on protecting clients, lawyers and the legal process from many of the excesses of an unregulated industry. The TBA bill (HB1084, SB0921) is sponsored by House Consumer Affairs Committee Chair Jimmy Eldridge (R-Jackson) and Sen. Mae Beavers (R-Lebanon), chair of the senate Judiciary Committee.