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.    

Noneconomic Damages Reform: Wrongful Death: SB 283 (1994): Md. Cts. & Jud. Pro. §11-108.

Maryland|1994

Limits noneconomic damages in wrongful death actions to $500,000.  In

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Limits noneconomic damages in wrongful death actions to $500,000.  In cases where there are two or more beneficiaries, the limit is $700,000.  The reform somewhat counters the effect of the Streidel decision, which held that Maryland’s $350,000 limit on noneconomic damages did not apply in wrongful death actions.


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Noneconomic Damages Reform: SB 558 (1986)

Maryland|1986

Limits the award of noneconomic damages to $500,000.

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Limits the award of noneconomic damages to $500,000.


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Challenged and Upheld

The Court of Special Appeals of Maryland upheld the constitutionality of the noneconomic damages limit in Potomac Electric Co. v. Smith, 79 Md. App. 591, 558 A.2d 768 1989. 

The $350,000 limit on noneconomic damages in personal injury actions did not violate the equal protection or right to jury trial provisions of the State Constitution.  Murphy v. Edmonds, 601 A.2d 102 (Md. 1992).