On Thursday, May 1, 2003, Governor Bob Taft held a joint press conference with Senator Steve Stivers
( R - Columbus ) in coordination with the introduction of Senate Bill 80, the tort reform legislation. Taft expressed his support for the legislation and said it will help to improve the business climate in Ohio. He said the bill would help businesses thrive and grow, which will create more jobs through litigation reform. Taft said the bill creates limits on noneconomic damages; creates more stringent standards on frivolous conduct by attorneys by permitting judges to impose penalties; preserves access to the court system; offers protection for manufacturers by establishing a 10-year statute of limitations within which product liability and construction related lawsuits can be filed; limits caps on attorney contingency fees; and creates a Legal Consumers' Bill of Rights to inform plaintiffs of their rights related to contingency fees, Taft said Senate Bill 80 provides a fair and predictable system of civil justice in Ohio by balancing the rights of those legitimately harmed against the rights of those who are unfairly sued.
Senator Stivers, the sponsor of Senate Bill 80, said that it is economic development legislation because the current civil justice system is causing bankruptcy, loss of jobs and is stifling innovation. Stivers cited that one out of three small business owners have been sued or threatened with a lawsuit and the impact of lawsuits cost the average Ohioan $721 per year due to increased costs placed on products by businesses. The goal of his bill is to create a balanced plan by compensating the injured fairly while removing the negative impact on jobs and the economy.
Stivers explained that his bill creates a Legal Consumer's Bill of Rights and a sliding scale for contingency fees. The bill allows judges to dismiss frivolous lawsuits and allows juries to receive more information throughout the trial, such as being informed of collateral sources of income, seat belt use, and tax consequences of awards. The bill creates reasonable standards for noneconomic damages by allowing awards up to $1 million for serious injuries and up to $500,000 for less serious injuries. He said that a U.S. Supreme Court decision said the relationship between economic and punitive damages should be one to four times the economic loss. The caps in Senate Bill 80 are at level one. He said the bill creates guidelines for punitive damages and addresses perpetual liability through a statute of repose. Product liability provisions were extended to over-the-counter drugs and medical devices marketed under federal regulations. In addition, Stivers bill includes a specific section, which requires plaintiffs in asbestos claims to have supporting test results that demonstrate physical impairment that meet specific minimum requirements.
In questioning from members of the press, Stivers said that he did not want to wait and see how the Supreme Court reacts to the provisions passed under Senate Bill 281 because the issue is too important to wait. Stivers said that the composition of the new Supreme Court had nothing to do with his introduction of the bill and said he would have introduced it anyway. The AMC/NOMA would like to see mandatory arbitration language added to this legislation.
AMC/NOMA is a member of a Coalition called the Ohio Alliance for Civil Justice and the Coalition is working on broad-based tort reform legislation. Senate Bill 80 has been referred to the Senate Judiciary - Civil Justice Committee and a hearing will be held on May 7, 2003.