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: AB 36 (1995)

Wisconsin|1995

Limits the award of noneconomic damages in medical liability cases

[…]

Limits the award of noneconomic damages in medical liability cases to $350,000, indexed for inflation.


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Challenged and Struck Down

The $350,000 limit on noneconomic damages awards in medical liability cases did not violate the right to jury trial, separation of powers, remedy for wrongs, equal protection, or  due process provisions of the State constitution.  Guzman v. St. Francis Hospital, Inc., 2000 WL 1848463 (Wis. App. Dec. 19, 2000).