TENNESSEE REFORMS

Appeal Bond Reform: HB 2008 / SB 1522 (2011).  Lowers the amount a defendant can be required to pay to appeal a decision from $75 million to $25 million not to exceed 125% of the judgment.

Appeal Bond Waiver Reform: SB 1687 (2003).  Limits the amount a defendant can be required to pay to secure the right to appeal to $75 million.

Class Action Reform: HB 2008 / SB 1522 (2011).  Provides for interlocutory appeal of class certifications.

Consumer Protection Act Reform: HB 2008 / SB 1522 (2011).  Amends the Tennessee Consumer Protection Act (“TCPA”) as follows: eliminates a private right of action for actions based on the sale or marketing of securities, since those claims are governed by state and federal securities laws; provides that only the Attorney General may pursue actions under the “catchall provision” of the TCPA on behalf of Tennessee consumers; prohibits the award of punitive damages for an unfair or deceptive act or practice if the judge awards treble damages and attorney fees; and prohibits class actions from being brought under the consumer fraud statute and makes other changes to the consumer fraud statute. 

Innocent Seller: HB 2008 / SB 1522 (2011).  Prohibits products liability lawsuits against a retailer unless it exercised substantial control over the design, manufacture, packaging or labeling of the product, altered the product, gave an express warranty or the manufacturer is insolvent or not subject to process in Tennessee.

Joint and Several Liability Reform: McIntyre v. Balentine, 833 S.W.2d 52 (Tenn. 1992).  Bans application of the rule of joint and several liability in the recovery of all damages.

Medical Liability: HB 2008 / SB 1522 (2011).  Amends existing Tennessee medical malpractice laws to replace the term “medical malpractice” with “health care liability action” and expands the definition of “health care provider,” to expressly include nursing homes, assisted living facilities, mental health centers, pharmacists and employees of these individuals and entities within the ambit of medical malpractice laws.

Medical Liability Reform: Collateral Source Reform: Tenn. Code Ann. § 29-26-119.  Provides for economic damages to be offset in medical liability cases by collateral sources, except for sources including the assets of the plaintiff and the immediate family, or insurance purchased by the plaintiff in whole or in part. 

Medical Liability Reform: Contingent Fee Reform: Tenn. Code Ann. § 29-26-120.  Requires a judge to award contingent fees in medical liability cases not to exceed 33.3%.

Noneconomic Damages Reform: HB 2008 / SB 1522 (2011).  Limits noneconomic damages to $750,000 per occurrence in medical liability actions, and a limit of $1 million if the injury or loss is catastrophic in nature.  The limits on noneconomic damages do not apply if the defendant acted with intent to harm, falsified records or acted under the influence of drugs or alcohol.

Obesity Litigation Reform: SB 2379 (2004).  Exempts from civil liability manufacturers, distributors, sellers or advertisers of food [as defined in Section 201(f) of 21 U.S.C. 321(f)] when the claim is for weight gain, obesity, or other conditions resulting from the long-term      consumption of food.  The civil liability exemption does not apply if the claim is based on a material violation of state or federal law with respect to adulteration or misbranding.  The liability exemption also does not apply if the claimed injury is 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 other proceedings shall be stayed during a motion to dismiss. 

Punitive Damages Reform: HB 2008 / SB 1522 (2011).  Limits punitive damages to two times compensatory damages or $500,000, whichever is greater.  The limits on punitive damages do not apply if the defendant acted with intent to harm, falsified records or acted under the influence of drugs or alcohol.

Punitive Damages Reform: Hodges v. S.C. Toof & Co., 833 S.W.2d 896 (Tenn. 1992).  Requires a plaintiff to prove punitive damages by “clear and convincing” evidence.

Regulatory Compliance: HB 2008 / SB 1522 (2011).  Prohibits the award of punitive damages against the seller of the product, with certain exceptions, and prohibits the award of punitive damages against drug or device manufacturers when the product was manufactured in accordance with relevant Federal law, with certain exceptions.  Prohibits the award of punitive damages when the defendant was in compliance with relevant federal and state regulations setting forth specific standards applicable to the activity in question to protect a class of persons or entities that includes the plaintiff.

Silica Litigation Reform: S.B. 3539 (2006).  Establishes minimum medical criteria for the filing of silica cases.  Requires a claimant to submit a written report from a qualified medical authority within 30 days of filing a silica complaint.  Allows for premises liability reform.

Venue Reform: HB 2008 / SB 1522 (2011).  Outlines the venues where civil suits can be filed to include the county where the claim accrued, where the defendant’s principal place of business is located or where the defendant’s registered agent is located.  If the defendant does not have a registered agent in Tennessee, venue is proper in the county where the person designated by statute as the defendant’s agent for service of process is located. This provision seeks to prevent forum shopping and deviates from current law, under which a business can be sued in any county in which it has an office.