Reasonable civil justice system draws closer to reality.

One of The Ohio Society's top legislative priorities took a big step forward June 11 with the Ohio Senate's passage of SB 80, an omnibus tort reform bill of critical importance to Ohio's business community. The bill seeks to bring greater predictability to Ohio's civil justice system by building on the significant win last session in SB 120, the new proportionate liability law.

In its Senate-passed form, major provisions of SB 80 include:

* Limits punitive damages to compensatory damages or $100,000, whichever is greater (whichever amount is less for employers of 500 or fewer); and limit the imposition of more than one punitive damage award for the same act/course of conduct. Current law provides for no relationship between the harm caused and punishment awarded. These limits would not apply to individuals guilty of drunk driving or sex crimes.

* Limits non-economic damages (i.e. pain and suffering, emotional distress) for all tort actions to the greater of $250,000 or three times a plaintiff's economic loss with a maximum of $350,000 per plaintiff/$500,000 per occurrence. For catastrophic injuries, the limit would be $500,000 per plaintiff/$1 million per occurrence. These limits were adopted into Ohio law last session for medical claims.

* Allows the jury to consider evidence that a plaintiff received other compensation for the same injury or loss, if a victim was wearing a seat belt in an auto accident, and that monetary award will not be subject to taxation.

* Creates a 10-year statute of repose for all product liability claims and improvements to real property. Under current law, there is no statute of repose for products or construction, meaning manufacturers, architects, engineers and others have legal exposure until they go out of business or, in the case of professionals, die.

* Addresses asbestos claims by creating specific criteria for determining injuries related to asbestos exposure. Sen. Stivers pointed out that more than 60 percent of asbestos awards are provided to plaintiffs who have been exposed to asbestos but are not yet sick.

* Creates a sliding scale for contingency fees for tort actions other than medical malpractice actions, and prohibits an attorney from collecting a fee over 35 percent of the first $100,000 awarded, 25 percent of the next $500,000, and 15 percent of any amount of the recovery exceeding $600,000.

* Adopts a Legal Consumer's Bill of Rights to ensure plaintiffs are fully aware of fees, processes, and their rights as a client.

Weeks of often contentious hearings before the Senate Judiciary on Civil Justice Committee on SB 80 were followed by hours of spirited debate on the Senate floor. More than 30 amendments were offered in an attempt to gut major provisions of the bill. Fortunately, each weakening amendment was defeated and the bill continues to move forward due to the strong leadership shown by Senate President Doug White (R-Manchester), committee chairman David Goodman (R-Bexley), and the bill's chief sponsor, Sen. Steve Stivers (R-Columbus). Other key supporters of SB 80 include Gov. Bob Taft and the Ohio Alliance for Civil Justice, a broad-based coalition of more than 200 organizations (including The Ohio Society) representing large and small businesses, farmers, professionals, the medical community, non-profit groups and local government entities. Opponents of the bill include the Ohio Academy of Trial Lawyers and the Ohio State Bar Association.

Numerous witnesses testified to the fact that Ohio's currently unpredictable civil justice system encourages frivolous lawsuits, high settlements, unending liability on the part of many defendants, and discourages businesses from either locating in Ohio or expanding current operations. The National Federation of Independent Business testified that a 2003 survey found that one-third of small business owners in Ohio have been sued in the past five years, and one in two has been threatened with a lawsuit. Ohio Department of Development Director Bruce Johnson testified in favor of SB 80, noting it "is a balanced bill that will improve the business climate and economic competitiveness of Ohio." He added that over the past 20 years more than 40 states, including all of Ohio's neighbors, have adopted many of the reforms included in SB 80.

The legislation now goes to the Ohio House for consideration, where hearings are not expected to begin until after the legislature's summer recess. House leaders have expressed a desire to take a slower approach than the Senate, noting concerns about constitutionality and balance between rights of plaintiffs and rights of defendants.

Ohio CPAs are encouraged to contact their state representatives over the summer to encourage their support for this important business-backed bill. For more information, contact Barbara Benton, vice president, governmental affairs, at [e-mail].