Arizona Issues

American Law Institute

Reforms

Secondary Sources / Insurance – H.B. 2272

Arizona|2022

Provides that a secondary source on insurance (such as an

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Provides that a secondary source on insurance (such as an ALI Restatement), including any legal treatise, scholarly publication, textbook or other explanatory text, does not constitute the law or public policy of Arizona and is not authoritative if the secondary source purports to create, eliminate, expand or restrict a cause of action, right or remedy or if it conflicts with any of the following: the United States Constitution or the Arizona Constitution, state law, state case law precedent, or other common law that may have been adopted by Arizona.

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Unchallenged

Attorney General Sunshine / Private Attorney General Sunshine

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Government Retention of Personal Injury Lawyers: S.B. 1132 (2012)

Arizona|2012

Limits contingency fees by prohibiting the state from entering into

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Limits contingency fees by prohibiting the state from entering into a contingency fee contract providing for the state’s private attorney to receive a contingency fee from this state’s portion of the recovery. The bill also requires posting of executed contingency fees contracts unless the attorney general determines that the posting may cause damage to the reputation of any business or person.

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Government Retention of Personal Injury Lawyers: H.B. 2423 (2011); A.R.S. § 41-4801.

Arizona|2011

Bars the state from entering into a contingency fee contract

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Bars the state from entering into a contingency fee contract with a private attorney unless the attorney general first makes a written determination that the contingency fee representation is both cost effective and in the public interest. The contract must be posted on the attorney general’s website for at least 365 days. Limits the amount of aggregate contingency fees that the attorney may receive. The private attorney may not receive more than 25% of any recovery less than $10 million, 20% of any recovery of between $10 million and $15 million, 15% of any recovery of between $15 million and $20 million, 10% of any recovery of between $20 million and $25 million, and 5% of any recovery of more than $25 million.

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Reforms

Class Action Reform: S.B. 1346 (2013)

Arizona|2013

Makes changes to how class action lawsuits are treated in

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Makes changes to how class action lawsuits are treated in Arizona. Most importantly, the bill allows for an interlocutory appeal of the class certification. If the court certifies the class, it is required to certify its action in writing, outlining why the action should be maintained as a class (including providing evidence in support of determination). If an appeal is filed, all discovery and other proceedings shall be stayed, except that if a party makes a motion, the court may permit discovery proceedings to continue during the pendency of the appeal. Finally, the bill provides for the trial court to make appropriate orders governing the management of the proceedings and provide for appropriate orders for the protection of class members during the trial proceedings.

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Unchallenged

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Lengthy Trial Fund – H.B. 2246

Arizona|2017

Extends the sunset provision of the Arizona lengthy trial fund

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Extends the sunset provision of the Arizona lengthy trial fund from June 30, 2019, to June 30, 2027.

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Unchallenged

Jury Service Reform: S.B. 1248 (2014)

Arizona|2014

Extends the Lengthy Jury Trial Fund for another ten years

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Extends the Lengthy Jury Trial Fund for another ten years to June 30, 2024. Arizona’s Lengthy Jury Trial Fund was established in 2003 as a part of a comprehensive jury service reform package to attract better jurors. The fund was scheduled to sunset on July 1, 2014.

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Unchallenged

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Post-Judgment Interest: H.B. 2162 (1994)

Arizona|1994

Applies only to postjudgment interest on medical liability actions, including

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Applies only to postjudgment interest on medical liability actions, including those resolved through ADR. The postjudgment interest rate is tied to the federal postjudgment interest rate and now has a floor of 3% and a ceiling of 9%.

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Unchallenged

Medical Liability Reform: S.B. 1018 (2009)

Arizona|2009

Raised the burden of proof in medical liability actions against

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Raised the burden of proof in medical liability actions against healthcare providers and hospitals to clear and convincing evidence in connection with certain emergency medical services.

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Unchallenged

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Manufacturer Exemption from Punitive Damages: H.B. 2503 (2012)

Arizona|2012

Establishes reasonable liability rules for manufacturers, service providers and sellers

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Establishes reasonable liability rules for manufacturers, service providers and sellers of products with respect to punitive damages when their product or service is in compliance with state or federal laws/regulations. Recognizes that the specific purpose of an award of punitive damages is to punish and deter unlawful conduct, and a defendant should not be punished in civil litigation when it is in compliance with applicable laws and regulatory requirements. Does not apply if it can be demonstrated that the defendant engaged in the following conduct: (1) the business withheld or misrepresented information utilized to gain regulatory approval; (2) the defendant mad an illegal payment to an official to obtain approval of the product or service; or, (3) the defendant sold a product or service after the government ordered the product or service to be removed from the marketplace.

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Punitive Damages Reform: FDA-Approved Drugs: SB 1453 (1989).

Arizona|1989

Establishes a government standards defense to punitive damages for FDA-approved

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Establishes a government standards defense to punitive damages for FDA-approved drugs.

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Miscellaneous

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Firearms Liability – S.B. 1382

Arizona|2021

Prohibits the state from suing members of the firearm industry

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Prohibits the state from suing members of the firearm industry for lawful design, marketing, distribution, and sale of firearms and ammunition to the public. It also prohibits civil action against the manufacturer or seller of a firearm or ammunition for damages related to the criminal misuse of the firearm or ammunition.

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Unchallenged

Asbestos Overnaming – S.B. 1157

Arizona|2022

Provides that within 45 days of filing an asbestos action,

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Provides that within 45 days of filing an asbestos action, a plaintiff shall file a sworn statement specifying the facts that provide the basis for each claim against each defendant and include supporting documentation. Plaintiffs have a continuing duty to supplement the required disclosures. The court, on motion by a defendant, shall dismiss a plaintiff’s asbestos action without prejudice as to any defendant whose product or premises is not identified in the required disclosures.

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Unchallenged

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Lawsuit Abuse Awareness Week — Protecting Arizona’s Small Businesses

In The News

Lawsuit Abuse Awareness Week prompts reflection on Arizona’s civil justice system, highlighting excessive tort costs harming small businesses, job loss, and economic growth.

Phantom Damages Reform

American Law Institute

Attorney General Sunshine / Private Attorney General Sunshine

Appeal Bond Reform

Class Action Reform

Joint and Several Liability

Judgement Interest Reform

Jury Service Reform

Medical Liability Reform

Punitive Damages

Miscellaneous

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Lawsuit Abuse Awareness Week — Protecting Arizona’s Small Businesses