SB 59 – Mandatory Arbitration Overview

SB 59 directs the head of the Ohio Department of Insurance in collaboration with the Ohio Supreme Court, to establish a pilot program mandating arbitration for medical negligence claims in seven counties, Huron, Erie, Lorain, Cuyahoga, Summit, Geauga and Lake. The goal of the legislation is to utilize Alternative Dispute Resolution (“ADR”) to obtain a more efficient and fair resolution of claims. The pilot program will contain the following provisions:

  1. Applies to claims involving health care professionals (i.e. a physician authorized to practice medicine, osteopathic medicine, or podiatric medicine, and surgery) hospitals and health care facilities.

  2. Requires arbitration before the filing of a lawsuit.

  3. Amends the one year statute of limitations for to allow for a suit to be filed within sixty days of the conclusion of the arbitration.

  4. Incorporates the requirement of an Affidavit of Merit as provided for in Ohio Civil Rule 10.

  5. Provides that the three person arbitration panel shall be comprised of one medical expert chosen by the plaintiff, one medical expert chosen by the defendant and a chairperson chosen by the two experts who has expertise as an arbitrator.

  6. The American Health Lawyers Association (AHLA) shall appoint any panel member or chairperson should the parties be unable to reach agreement on the appointment.

  7. The panel shall only rule on liability. It will not rule on damages. This is called a bifurcated process and is fairly common in our court system. If there is a finding of liability, then the claim shall go to a jury for damages, if it is not settled in the interim period between the ruling and a jury damage process.

  8. A party may reject the ruling of the arbitration panel and proceed to the court system. If the rejecting party is then also unsuccessful on the liability issue at trial, that party will be responsible for the costs and attorney fees of the opposing party.

  9. Evidence obtained during the Arbitration may be used in a court action.

  10. The Arbitration ruling is admissible in a court action but not any accompanying opinions.

  11. The Ohio Rules of Evidence apply to the Arbitration. The Legislation gives discretion to the Ohio Supreme Court to pass Rules regarding the applicability of the Ohio Civil Rules.

  12. If the panel deems the claim frivolous, a bond must be posted in order to proceed to the court system.

SB 59 directs the head of the Ohio Department of Insurance in collaboration with the Ohio Supreme Court, to establish a pilot program mandating arbitration for medical negligence claims in seven counties, Huron, Erie, Lorain, Cuyahoga, Summit, Geauga and Lake. The goal of the legislation is to utilize Alternative Dispute Resolution (“ADR”) to obtain a more efficient and fair resolution of claims. The pilot program will contain the following provisions:

  1. Applies to claims involving health care professionals (i.e. a physician authorized to practice medicine, osteopathic medicine, or podiatric medicine, and surgery) hospitals and health care facilities. 

  2. Requires arbitration before the filing of a lawsuit.

  3. Amends the one year statute of limitations for to allow for a suit to be filed within sixty days of the conclusion of the arbitration.

  4. Incorporates the requirement of an Affidavit of Merit as provided for in Ohio Civil Rule 10.

  5. Provides that the three person arbitration panel shall be comprised of one medical expert chosen by the plaintiff, one medical expert chosen by the defendant and a chairperson chosen by the two experts who has expertise as an arbitrator.

  6. The American Health Lawyers Association (AHLA) shall appoint any panel member or chairperson should the parties be unable to reach agreement on the appointment. 

  7. The panel shall only rule on liability. It will not rule on damages. This is called a bifurcated process and is fairly common in our court system. If there is a finding of liability, then the claim shall go to a jury for damages, if it is not settled in the interim period between the ruling and a jury damage process.

  8. A party may reject the ruling of the arbitration panel and proceed to the court system. If the rejecting party is then also unsuccessful on the liability issue at trial, that party will be responsible for the costs and attorney fees of the opposing party. 

  9. Evidence obtained during the Arbitration may be used in a court action.

  10. The Arbitration ruling is admissible in a court action but not any accompanying opinions.

  11. The Ohio Rules of Evidence apply to the Arbitration. The Legislation gives discretion to the Ohio Supreme Court to pass Rules regarding the applicability of the Ohio Civil Rules.

  12. If the panel deems the claim frivolous, a bond must be posted in order to proceed to the court system.