COVID-19 Liability Protection & ATRA Priority Bill Signed By Gov. Kim Reynolds
ATRA thanks Gov. Kim Reynolds for signing and the Iowa legislature for passing S.F. 2338, providing COVID-19 liability protections and reforming phantom damages in Iowa.
Yesterday, Iowa Governor Kim Reynolds (R) signed into law S.F. 2338, legislation that contains “phantom damages” reform and COVID-19 liability protections.
This legislation was largely based on the American Tort Reform Association’s white paper regarding COVID-19 liability and implements many of the policy solutions put forth by the association.
“We are pleased to see Gov. Reynolds put in place the necessary protections for those serving on the front lines, like our healthcare workers and manufacturers of personal protective equipment,” ATRA President Tiger Joyce said. “Taking action now places Iowa on more solid footing as the nation enters a new phase of economic recovery by protecting critical workers and industries from the unnecessary and overly burdensome costs of litigation.”
The legislation further reforms the system by which “phantom damages” are awarded as recoverable medical expenses in personal injury cases. “Phantom damages” are created when recoveries are calculated using billed charges rather than actual reimbursement. This creates a “phantom” cost which neither the patient nor their insurer ever paid, but inflates the overall cost of the judicial system.
This bill will help reduce costs to the system by requiring evidence of actual amounts paid instead of an often-inflated, billed amount. Reforming the phantom damages system and correcting this discrepancy is a long-time priority of ATRA’s.
“We are grateful for the leadership of Gov. Reynolds, Senate Majority Leader Jack Whitver (R), Speaker of the House Pat Grassley (R), Sen. Zach Whiting (R) and Rep. Gary Carlson (R) and for the work put forth by the legislature in Iowa to create a more balanced judicial system where equal justice is available under the law,” Joyce said.
Latest News
View all news
Congressional Hearing on Bankruptcy to Address Mass Tort Litigation
ATRA Reiterates Support for Chapter 11 Bankruptcy Use to Address Mass Tort Litigation, Urges Meaningful Dialogue Amid Senate Judiciary Committee Hearing
Climate Lawsuits Don’t Belong In State Courts
By maintaining the clear distinction between the judiciary and policymaking, the court can help us navigate this critical issue with prudence and responsibility, safeguarding a sustainable future for all.
House Oversight Hearing on Third-Party Litigation Financing Applauded by ATRA
The lack of oversight and transparency around third-party litigation funding threatens the integrity of our legal system
Georgia Legislature Needs to Address Lawsuit Abuses
Together, let’s forge a legal landscape that makes equitable access to justice a living reality for all Georgians.
Private Attorneys Hired by State Should Not Reap a Windfall at Taxpayers’ Expense
This is an opportunity to reassess the practices and regulations surrounding private-attorney contracting and to enact reforms that promote fairness, transparency and value for taxpayer dollars.
ATRA Applauds 4th Circuit’s Denial of En Banc Review in Bestwall Litigation
Allowing the company to continue the bankruptcy process will help ensure equitable and efficient resolution in complex mass tort claims