Noneconomic Damages Reform

Problem

The broad and basically unguided discretion given juries in awarding damages for noneconomic loss is the single greatest contributor to the inequities and inefficiencies of the tort liability system.  It is a difficult issue to address objectively because of the emotions involved in cases of serious injury and because of the financial interests of plaintiffs’ lawyers. 

ATRA's Position:

ATRA supports a $250,000 limit on the award of noneconomic damages.

Opposition Opinion:

The personal injury bar’s argument against limiting noneconomic damages – that a jury’s award of noneconomic damages should not be reduced to an amount determined by legislators because a jury can determine on a case-by-case basis to what extent to compensate a plaintiff for harm suffered – fails to address the difference between noneconomic damages and economic damages, and fails to take into account the intangibility of noneconomic damages awards.  A limit on noneconomic damages limits the amount a plaintiff can recover for pain and suffering, emotional distress, loss of consortium or companionship, and other intangible injuries for which it is difficult to assign a dollar amount.  Such a limit does not affect the amount a plaintiff can recover for economic damages, which include past and future medical bills, expected lost wages, and other tangible damages.    

Medical Liability Reform/Noneconomic Damages Reform: S.B. 67 (2005).

Alaska|2005

Lowers the limit on noneconomic damages in medical liability cases

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Lowers the limit on noneconomic damages in medical liability cases to $250,000.  In the most severe cases involving disfigurement, severe permanent physical impairment, and wrongful death, the limit on noneconomic damages is $400,000.  The previous limit on noneconomic damages ranged from $400,000 to $1 million, depending on the severity of the injuries.


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Noneconomic Damages Reform: HB 58 (1997)

Alaska|1997

Limits noneconomic damages awarded for most single injuries or deaths

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Limits noneconomic damages awarded for most single injuries or deaths to the greater of $400,000 or the injured person’s life expectancy in years multiplied by $8,000.  Limits noneconomic damages for personal injuries involving permanent physical impairment or severe disfigurement to the greater of $1,000,000 or the person’s life expectancy in years multiplied by $25,000.


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Challenged and Upheld

The reform did not violate the right to a jury trial, the right to equal protection, or the right to substantive due process in the State or Federal Constitutions, the separation of powers doctrine, or the right of access to the courts or ban on “special legislation” in the State Constitution).  Evans v. State, 2002 WL 1998141 (Alaska Aug. 30, 2002).