Joint and Several Liability

Problem

The rule of joint and several liability is neither fair, nor rational, because it fails to equitably distribute liability. The rule allows a defendant only minimally liable for a given harm to be forced to pay the entire judgment, where the co-defendants are unable to pay their share.

ATRA's Position:

ATRA supports replacing the rule of joint and several liability with the rule of proportionate liability. In a proportionate liability system, each co-defendant is proportionally liable for the plaintiff’s harm. For example, a co-defendant that is found by a jury to be 20% responsible for a plaintiff’s injury would be required to pay no more than 20% of the entire settlement. More moderate reforms that ATRA supports include: (1) barring the application of joint and several liability to recover non-economic damages; and (2) barring the application of joint and several liability to recover from co-defendants found to be responsible for less than a certain percentage (such as 25%) of the plaintiff’s harm.


Opposition Opinion:

The personal injury bar’s argument in support of joint and several liability—that the rule protects the right of their clients to be fully compensated—fails to address the hardship imposed by the rule on co-defendants that are required to pay damages beyond their proportion of fault.

Joint and Several Liability Reform: HB 571 (1997)

Montana|1997

Retains the current system of modified joint and several liability,

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Retains the current system of modified joint and several liability, where joint liability does not apply to defendants found to be less than 50% at fault.  Revises the comparative negligence statute to permit the allocation of a percentage of liability to defendants who settle or are released from liability by the plaintiff.  Allows those defendants to intervene in the action to defend against claims affirmatively asserted.  Provides that joint liability shall apply in actions arising from an act or omission that violates a state environmental law relating to hazardous or deleterious substances.


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Unchallenged

Joint and Several Liability Reform: SB 212 (1995).

Montana|1995

Restores the joint and several liability reforms of 1987, which

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Restores the joint and several liability reforms of 1987, which had been weakened by the Montana Supreme Court.  Provides procedural safeguards to allow joint liability to apply only when a defendant is found to be more than 50% at fault.


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Joint and Several Liability Reform: SB 51 (1987).

Montana|1987

Bars application of the rule of joint and several liability

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Bars application of the rule of joint and several liability in the recovery of all damages from defendants found to be 50% or less at fault.  Parts of the 1987 comparative negligence statute allowing fault to be allocated to nonparties violated the due process provision of the State Constitution.  Newville v. State of Montana, Department of Family Services, 883 P.2d 793 (Mont. 1994).


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