KENTUCKY REFORMS

Appeal Bond Reform: H.B. 426 (2007) Provides that the total appeal bond required collectively of all appellants during the appeal of a civil action may not exceed one hundred million dollars ($100,000,000) in the aggregate, regardless of the amount of the judgment.

Appeal Bond Reform: SB 316 (2000).  Limits the amount a defendant can be required to pay to secure the right to appeal to $100 million.  The reform applies in out‑of‑state judgments during the stay period only.

Collateral Source Rule Reform: HB 551 (1988).  Mandates that juries be advised of collateral source payments and subrogation of rights of collateral payers.  The statute allowing the admission of evidence of collateral source payments in personal injury actions violated the separation of powers provision of the State Constitution.  O’Bryan v. Hedgespeth, 892 S.W.2d 571 (Ky. 1995).

Government Liability Reform: HB 551 (1988).  Limits damages recoverable against a city.  Exempts cities from liability for the performance of or failure to perform “legislative, quasi-legislative, judicial, and quasi-judicial functions.”

Joint and Several Liability Reform: HB 21 (1996): Ky. Rev. Stat. Ann. § 411.182.  Bars application of the rule of joint and several liability in the recovery of all damages.

Joint and Several Liability Reform: HB 551 (1988).  Requires that juries be instructed to determine the percentage of fault appropriate to each claimant, defendant, third party defendant and defendant settling out of court and apportion each party's equitable share in accordance with the respective percentages of fault.  Prudential Life Ins. Co. v. Moody, 696 S.W.2d 503 (Ky. 1985).

Obesity Litigation Reform: SB 103 (2005). Exempts from civil liability manufacturers, packers, distributors, carriers, holders, sellers, marketers, or advertisers of food, as defined in KRS 217.125 or    21 U.S.C. 321, for claims arising out of weight gain, obesity, health conditions associated with weight gain or obesity, or other generally known conditions allegedly caused by or allegedly likely to result from long-term consumption of food.  The liability exemption does not apply if the claim is based on a material violation of state or federal adulteration or misbranding requirement.  The liability exemption also does not apply for any other material violation of federal or state law applicable to the manufacturing, marketing, distribution, advertising, labeling or sale of food and the violation was committed knowingly and willfully.  Provides that discovery and all other proceedings shall be stayed during a motion   to dismiss.

Officers and Directors Liability Reform: HB 551 (1988).  Allows corporations through a shareholder action to assume greater responsibility for the liability of their directors and requires “clear and convincing” evidence of conduct that was willful, wanton, or in reckless disregard of a corporation’s interests.  Defines standards for which officers and directors cannot be held personally liable.  Protects volunteers from liability.

Punitive Damages Reform: HB 551 (1988).  Ky. Rev. Stat. Ann. § 411.184(2).  Requires, for the award of punitive damages, a plaintiff to show by “clear and convincing” evidence that a defendant acted with oppression, fraud or malice.  The 1988 punitive damages reform statute requiring a plaintiff to show that the defendant acted with “flagrant indifference to the rights of the plaintiff and with a subjective awareness that such conduct will result in human death or bodily harm” as a predicate for punitive damages liability violated “jural rights” provisions of the State Constitution.  Williams v. Wilson, 972 S.W.2d 260 (Ky. 1998).

Statute of Limitations Reform: HB 551 (1988).  Reduces the statute of limitation for property damage from five years to two years.

Supreme Court Recommendations: HB 551 (1988): House Concurrent Res. 62. Urges the Supreme Court to require plaintiffs and defendants to file a certificate of merit stating their claim or defense and stating that an expert witness will testify in support of their claim or defense.  Recommends that the Supreme Court amend Rule 68 directing that all costs be awarded against a party failing to accept a reasonable offer of settlement.  Recommends that the Supreme Court amend Rule 59 to allow the Court to review and amend an award if it believes an award to be excessive or inadequate.