A comprehensive package of reforms intended to bring balance and fairness to Ohio’s civil justice system has been introduced by Ohio Senator Steve Stivers (R-Columbus). Senate Bill 80 was announced with support from Governor Taft; Senate President Doug White and key Senate leaders; representatives of Ohio’s small and large businesses; and a standing-room-only crowd of supporters at a news conference on May 1. Hearings began in the Senate the week of May 5.

“I am very pleased to have the opportunity to sponsor this important legislation,” said Senator Stivers. “Accomplishing these reforms will benefit Ohio consumers, employers and our economy as a whole by making reasonable, common-sense changes to the state’s civil justice system.”

Senator Stivers said the legislation strikes the right balance by protecting the rights of Ohioans who have been harmed by the negligence of others to be compensated for their losses fairly and reasonably, while also protecting the rights of those defendants unfairly targeted in a lawsuit.

Senate Bill 80 contains provisions that accomplish the following:

-Establishing a cap for non-economic damages in all tort actions. Current law provides a two-tier system for medical malpractice claims. For non-catastrophic injuries there is a cap of $350,000 per plaintiff or $500,000 per occurrence. For catastrophic injuries, such as loss of limb, the cap is $500,000 per plaintiff or $1 million per occurrence. The proposed legislation extends this cap to all tort actions.

-Placing limits on punitive damages in all tort actions. Current law provides no limitation on the amount of punitive damages recovered by a plaintiff, nor does it distinguish between small and large businesses. The proposed legislation would limit the punitive damages recoverable to the amount of economic damages or $100,000, whichever is greater for a large business, and no more than economic damages or $100,000, whichever is lesser for a small business. A small business is defined as having 500 or fewer employees.

-Eliminating the "collateral source" rule. Existing law allows plaintiffs to receive full compensation for the same economic loss from multiple sources such as medical insurance and workers' compensation -- but prohibits defendants from informing the jury of these "collateral sources." The proposed legislation would allow evidence of "collateral source" payments to be admitted at trial and considered by the jury in determining damage awards.

-Establishing a "statute of repose" for products and construction. Current law allows liability lawsuits to be filed against manufacturers for products that are outdated or that may have been misused or improperly maintained over an indefinite period of time. The proposed legislation establishes a ten-year time period within which product liability and construction-related lawsuits may be filed.

-Creating an attorney fee provision in all tort actions. Existing law requires plaintiff’s attorney fees to be submitted to probate court for approval when those fees exceed the non-economic damage caps in medical malpractice cases. The proposed legislation establishes a sliding scale for contingency fees.

-Establishing more stringent standards to regulate frivolous conduct. Under current law, an award by the court may be made only upon the motion of a party to the civil action or appeal. The proposed legislation permits judges to impose penalties for frivolous conduct on their own initiative.

In addition, Senate Bill 80 contains several asbestos-related provisions to help ensure that those plaintiffs who are currently ill from alleged asbestos exposure have access to the courts and are compensated fairly for their harm.

OHBA supports this bill and will continue to work with the Ohio Alliance for Civil Justice (OACJ), a broad-based, non-partisan coalition of small and large businesses, manufacturers, trade and professional associations, farmers, health care professionals, non-profit organizations and local government associations who have joined forces to support meaningful, progressive reforms to Ohio’s civil justice system.