MICHIGAN
REFORMS
Appeal Bond Reform: HB 5151 (2002). Limits the amount a defendant can be required to pay to secure the
right to appeal to $25 million. Provides that this limit
will be adjusted on January 1, 2008 and again on January 1 every
five years after that by an amount determined by the state treasurer to reflect
the annual aggregate percentage change in the Detroit consumer price index since the
previous adjustment. Provides that a court will rescind the limit
if an appellee proves by a preponderance of the evidence that the party for
whom the bond to stay execution has been limited is purposefully dissipating or
diverting assets outside of the ordinary course of business for the purpose of
avoiding ultimate payment of the judgment.
Collateral Source Rule
Reform: HB 5154 (1986). Permits the admissibility of evidence of collateral
source payments after the verdict and before judgment is entered. Permits courts to offset awards, as long as a
plaintiff’s damages are not reduced by more than the amount awarded for
economic damages. The statute providing for the admissibility of collateral source
payments in personal injury actions did not constitute an unconstitutional
taking of property and did not violate the equal protection or right to jury
trial provisions of the State Constitution.
Heinz v. Chicago Road Investment Co., 549 N.W.2d 47 (Mich. App. 1996),
appeal denied, 567 N.W.2d 250 (Mich. 1997).
Frivolous Lawsuit Sanction: HB 5154
(1986). Allows a
court to assess court costs and attorneys’ fees for frivolous actions or
defenses.
Joint and Several
Liability Reform: HB 4508 (1995): Mich. Comp.
Laws §§ 600.6304(4), 600.6312. Bars application of the rule of joint and several liability in the recovery of all damages, except in cases of
employers’ vicarious liability and in medical liability cases, where the
plaintiff is determined not to have a percentage of fault.
Joint and Several
Liability Reform: HB 5154 (1986): Mich. Comp.
Laws §§ 600.6304(4), 600.6312. Bars application of the rule of joint and several liability in the recovery of all damages from
municipalities. Bars application of the
rule of joint and several liability in the recovery of
all damages from all other defendants, except in products liability actions and
actions involving a blame‑free plaintiff.
Provides that defendants are severally liable, except when uncollectible
shares of a judgment are reallocated between solvent co‑defendants
according to their degree of negligence.
Medical
Liability Reform: Collateral Source Rule Reform: Mich. Comp.
Laws § 600.6303. Provides for medical liability awards to be offset
by collateral sources, less any premiums paid to obtain the benefit.
Medical Liability Reform: Contingent Fee Reform:
Mich. Ct. R. 8.121. Limits contingent fees in medical liability cases
for personal injury or death to 33.3% of the amount recovered.
Medical
Liability Reform: Noneconomic Damages: SB 270/H 2 (1993): Mich.
Comp. Laws § 600.1483. Limits the award of noneconomic damages in medical
liability cases to $280,000 for ordinary occurrences, and $500,000 if the claimant has suffered brain damage, spinal cord
damage, damage to the reproductive system which prevents procreation, or injury
to cognitive ability that leaves the plaintiff unable to live alone.
Medical Liability Reform: Periodic Payment of Future Damages: Mich.
Comp. Laws § 600.6307. Requires that damages in excess of $250,000 in
medical liability cases are to be satisfied by the purchase of an annuity
contract.
Obesity Litigation Reform: H.B. 5809 (2004). Exempts from civil liability manufacturers,
packers, distributors, carriers, holders, sellers, marketers, promoters, or
advertisers of food (as defined in 21 U.S.C. 321) or an association of one or
more such entities when the claim is for weight gain, obesity, or a health
condition associated with weight gain or obesity. The liability exemption does not apply if the
claim is based on a material violation of a 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.
Finally, H.B. 5809 specifies that the state is prohibited from filing
obesity lawsuits.
Periodic Payment of Future Damages: HB 5154
(1986). Mandates the periodic
payment of future damages exceeding $250,000.
Prejudgment Interest Reform: HB 5154
(1986). Prohibits the assessment of prejudgment
interest on awards for future damages.
Product Liability Reform: SB 344
(1995). Bars application of the rule of joint and several
liability in product liability cases. Provides statutory defenses to product
liability claims, including adherence to government standards, FDA standards,
and sellers’ defenses. Provides an
absolute defense, where the plaintiff was found to be at least 50% at fault due
to intoxication or a controlled substance.
Limits the award of noneconomic damages in product liability cases not
involving death or loss of vital bodily function to $280,000. Limits the award of
noneconomic damages in such cases to $500,000.
Product Liability Reform: Venue Reform: HB 4508 (1995).
Provides venue control in product liability cases.
