Tort reform refers to the process of changing laws that govern personal injury (tort) cases. These laws are often intended to limit the amount of compensation claim filers can receive and restrict one’s ability to file lawsuits against negligent parties.
Although advocates say it helps prevent frivolous lawsuits and lowers insurance costs, tort reforms may make it harder for victims to get justice and receive fair compensation.
Examples of Tort Reform in Texas
Texas is particularly well known for pursuing tort reform. Some high-profile recent examples include the Pandemic Liability Shield signed into law by Governor Greg Abbot in 2021 and modifications to hailstorm property damage lawsuits in 2017. In the case of COVID-19, the law was intended to protect businesses by requiring plaintiffs to definitively prove that the business knowingly failed to comply with safety protocols. The hailstorm tort reform (HB 1774) sought to reduce penalty interest insurance companies were forced to pay to filers if they were late in processing and paying claims.
Recently, some plaintiffs have sought to challenge Texas’ controversial $250,000 non-economic damages cap on medical malpractice lawsuits – a measure passed and signed into law by then-Governor Rick Perry in 2003.
When Did Tort Reform Start in the U.S.?
Supporters, including large corporations and insurance companies, argued that the legal system was plagued by excessive litigation, surging insurance premiums and an overabundance of awards. This is a particularly common complaint in medical malpractice cases.
Medical interests have deep pockets to pay lobbyists to advocate for their interests in state capitals – an option that’s not available to most plaintiffs. This gives the target of lawsuits an outsized ability to limit their liability exposure when the negligence of professionals in their industry causes the injury or death of patients.
What Are Some Examples of Tort Reform?
- Damage Caps: One of the most popular platforms for tort reform involves implementing limits, or caps, on the amount of compensation a victim can receive. These caps usually apply to non-economic damages, such as pain and suffering, emotional distress and loss of consortium.
- Statute of Limitations: Tort reform may also restrict the time a victim has to file a lawsuit, also known as the statute of limitations. While the purpose of shortening the timeline is to discourage delayed or frivolous lawsuits, it may unfairly restrict the rights of individuals who don’t immediately realize the full extent of their injuries or those who struggle to gather proper evidence or find qualified representation in time.
- Modified Joint and Several Liability: In a personal injury case, joint and several liability holds multiple parties responsible for the full extent of damages, regardless of how much they were at fault. Tort reform measures seek to modify this principle by limiting the liability of certain defendants.
For instance, some jurisdictions have implemented “comparative fault” systems, in which damages are allocated proportionally based on each party’s degree of fault. However, the consequence is that it may be more challenging for victims to fully recover damages, especially if a liable party can’t contribute their share of the compensation.
- Collateral Source Rule: The collateral source rule allows injured parties to present evidence of benefits they have received from other sources – such as health insurance or workers’ compensation – without reducing the compensation they can receive from the negligent party. Some tort reform measures aim to modify or eliminate this rule, which can possibly reduce the amount of compensation victims can receive if they have already received benefits from other sources.
- Mandatory Arbitration: Depending on the circumstances, tort reform may introduce mandatory arbitration clauses in contracts, especially in industries such as healthcare or consumer products. This means parties may not be able to go to court, having to resolve disputes through arbitration instead. While arbitration is generally a quicker and less formal process, it can also prevent victims from getting a jury trial, which may be in the best interests of the party with more power or resources.
How Tort Reform Can Affect Your Personal Injury Case
These measures have far-reaching implications for those seeking compensation in property damage claims or personal injury cases – especially medical malpractice.
Tort reform can influence how negligent parties behave during a case. Limiting the compensation victims can receive may reduce the incentive for responsible behavior. Doctors who have less to lose in a medical malpractice case may not be as concerned about the consequences of breaching their duty of care, which puts the public at risk.
As experienced personal injury attorneys in Houston, we stay apprised of Texas tort reform efforts to ensure we’re well-positioned to pursue effective strategies on behalf of our clients.
We Aren’t Intimidated by Insurance Companies and Big Businesses with Friends in High Places
The attorneys at the Weycer Law Firm have handled a diverse array of high-profile cases, including medical malpractice lawsuits. We understand the unique challenges facing injured patients and their families and don’t back down from righteous fights with negligent professionals. To discuss your case with an attorney ready to provide skilled and aggressive representation, visit us online or call (713) 668-4545 today.
