NORTH CAROLINA REFORMS

Alternative Dispute Resolution: Mediation: SB 791 (1991).  Establishes pilot programs to require mediation of civil actions, including medical liability lawsuits.

Appeal Bond Reform: SB 784 (2003).  Limits the amount a defendant can be required to pay to secure the right to appeal to $25 million regardless of legal theory.  Provides that foreign judgments cannot be executed in North Carolina if appeal is pending in a foreign jurisdiction or the judgment has been stayed by the court that rendered it and a bond has been posted.

Appeal Bond Reform: SB 2 (2000).  Places a $25 million limit on bond requirements in punitive damages awards during the appeal process.  Provides that limits on bond appeals for out-of-state judgments apply during the stay period only.

Medical Liability Reform: Good Samaritan Protection: HB 425 (1991).  Expands the 1989 Good Samaritan statute, which included only volunteer physician immunity for free emergency services at local health department facilities or non-profit community health centers, to protect all individuals volunteering services at these sites.

Product Liability Reform: HB 637 (1995).  Provides that there shall be no strict liability in tort for product liability actions.  Provides statutory defenses to product liability claims, including assumption of the risk.

Punitive Damages Reform: HB 729 (1995): N.C. Gen. Stat. §§ 10-15(b), 1D‑25 .  Limits the award of punitive damages to the greater of three times the award of compensatory damages or $250,000, unless the defendant caused the injury by driving while impaired.  Requires a plaintiff to show by “clear and convincing” evidence that a defendant was liable for compensatory damages and acted with fraud, malice, willful or wanton conduct.  Requires the determination of awards for punitive damages to be made in a separate proceeding at the request of the defendant.  The statute limiting punitive damages awards to the greater of three times compensatory damages or $250,000 did not violate the right to a jury trial, separation of powers principle, open courts guarantee, prohibition against special legislation, or the principles of due process, equal protection or the right to enjoy the fruits of one’s labor under the State Constitution, and was not void for vagueness.  Rhyne v. K-Mart Corp., 2002 WL 553461 (N.C. App. Apr. 16, 2002).