NORTH
CAROLINA REFORMS
Alternative
Dispute Resolution: Mediation: SB 791 (1991); Amended N.C. Gen. Stat. §
7A-38. Establishes pilot programs to
require mediation of civil actions, including medical liability lawsuits.
Appeal Bond Reform: SB 33 (2011).
The amount of the undertaking that shall be required by the court shall
be an amount determined by the court after notice and hearing proper and
reasonable for the security of the rights of the adverse party, considering
relevant factors, including the following: (1) The amount of the judgment; (2)
the amount of the limits of all applicable liability policies of the appellant
judgment debtor; and (3) The aggregate net worth of the appellant judgment
debtor.
Appeal Bond Reform: SB 784 (2003); Amended
N.C. Gen. Stat. § 1-289. 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); Amended N.C. Gen. Stat. § 1C-1750. 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.
Attorneys Fees in Small Cases: HB
542 (2011). Limits attorneys fees to $10,000 in cases
brought against an insurance company in which the plaintiff is the insured or
beneficiary, and the amount of damages recovered is $20,000 or less. This restores the original intent of the
statute which was to encourage parties to negotiate reasonable settlements and
reduce litigation.
Expert Witness Reform: HB 542
(2011). Increases the standards for
admitting expert witness testimony and evidence.
Medical Liability Reform:
Bifurcation of Trials: SB 33 (2011). Upon motion of any party in an action in tort
wherein the plaintiff seeks damages exceeding $150,000, the court shall order
separate trials for the issue of liability and the issue of damages, unless the
court for good cause shown orders a single trial. Evidence relating solely to compensatory
damages shall not be admissible until the trier of
fact has determined that the defendant is liable. The same trier of
fact that tries the issues relating to liability shall try the issues relating
to damages."
Medical Liability Reform: Expert
Review: SB 33 (2011). Current North Carolina law requires a
plaintiff to have an expert witness who is qualified and willing to testify
that there was a deviation in the standard of care in order for a case to
proceed. S.B. 33 requires such expert
witnesses to review all reasonably available medical records in making such a determination
rather than relying on hypothetical scenarios.
Medical
Liability Reform: Good Samaritan Protection: HB 425 (1991); Amended N.C. Gen.
Stat. § 90-21.14. 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.
Medical Liability Reform: Non-emergency
Care: SB 33 (2011). Provides that in any medical malpractice
action arising out of the provision of emergency services, the health care
provider shall not be liable for the payment of damages unless it is found that
the care provided was not in accordance with the standards of practice among
members of the same health care profession with similar training and experience
situated in the same or similar communities under the same or similar
circumstances at the time of the alleged act giving rise to the cause of
action.
Medical Liability Reform: Emergency
Care: SB 33 (2011). Provides that in the treatment of an
emergency medical condition, as defined in 42 U.S.C. § 1395dd(e)(1)(A),
the claimant must prove a violation of the standards of practice by clear and
convincing evidence.
Medical Liability Reform:
Noneconomic Damages Reform: SB 33 (2011).
Limits
noneconomic damages in medical liability cases to $500,000 against all
defendants. The limit is subject to adjustments, every
three years starting on January 1, 2014, based on the Consumer Price Index. The legislation does provide for an exception
to the limit if: (1) the plaintiff suffered disfigurement, loss of use of part
of the body, permanent injury or death; and (2) the defendant's acts or
failures, which are the proximate cause of the plaintiff's injuries, were
committed in reckless disregard of the rights of others, grossly negligent,
fraudulent, intentional or with malice.
Medical Liability Reform: Statute of
Limitations for Actions by Minors or on Minor’s Behalf: SB 33 (2011).
Provides that an action may be brought at any time
prior to a minor’s 10th birthday. For minors ruled to be abused or neglected,
then the action must be commenced within three
years of such judgment or consent order
or before the minor reaches his/her 10th birthday – whichever is later. For minors in the custody of the state,
county or child placing agency, the action must be brought one year
post-custody or before the minor’s 10th birthday – whichever is later.
Phantom
Damages Reform: HB 542 (2011). Requires that
juries be given accurate information about the medical bills actually paid.
Product
Liability Reform: HB 637 (1995); Amended N.C. Gen. Stat.
§ 99B-1.1. 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).
Trespasser Liability Reform: HB 542
(2011). Codifies North Carolina
common law to make clear that land possessors are not liable for harm to trespassers
on their property.
