Tort 'reform' included in states' comprehensive legislation.

Two bills limiting consumer rights recently became law in Ohio and Maryland--the latter despite a veto by the governor, who called the bill "tort-reform real light."

In Ohio, Gov. Robert Taft (R) signed S.B. 80 in January. This comprehensive legislation caps noneconomic damages in civil actions at the greater of $250,000 or three times the economic losses, to a maximum of $350,000 for each plaintiff or $500,000 for each occurrence. There is no cap for permanent injury, permanent and substantial deformity, loss of a limb, or wrongful death.

The bill limits punitive damages to twice the compensatory damages. When the defendant is a small employer or an individual, the cap is the lesser of twice the compensatory damages or 10 percent of the defendant's worth at the time of the misconduct, up to $350,000.

The bill includes collateral source provisions and statute of repose/limitations provisions for products liability suits, and it provides food manufacturers, sellers, and trade associations immunity for obesity claims. It also broadens the FDA defense--which prohibits the recovery of punitive damages for drugs that comply with federal regulations--to include devices, over-the-counter drugs, and any other product that complies with government requirements.

In Maryland, Gov. Robert Ehrlich Jr. (R) called a special session on malpractice insurance in November. The state general assembly passed H.B. 2, the Maryland Patients' Access to Quality Health Care Act of 2004, but Ehrlich vetoed the measure, swing it did not go far enough to control rising insurance costs for doctors and contained a tax on HMOs that would ultimately be passed to consumers.

In early January, the legislature voted to override Ehrlich's veto.

The bill's provisions include a noneconomic damages cap of $650,000 that will increase by $15,000 a year after 2009; mandatory alternative dispute resolution; requirements that the party who rejects an offer pay subsequent costs if the judgment is not more favorable than the offer; and a provision that a health care provider's expressions of regret or apology are not evidence of an admission of liability.

The bill also requires that hospitals notify the state Department of Health and Mental Hygiene of unexpected death or serious disability resulting from suspected medical errors. A hospital must also report any actions--such as termination or limitation of staff privileges--taken against physicians it employs or to whom it grants privileges. Courts must report convictions, guilty pleas, and nolo contendere pleas by physicians for crimes involving moral turpitude to the state board of physicians.

Ehrlich said he would like to see additional measures passed to limit payouts to plaintiffs--by, for example, capping noneconomic damages in wrongful death cases at $500,000 and requiring plaintiffs to take installment payments rather than a lump sum. But Maryland lawmakers are skeptical that new medical malpractice legislation will garner enough votes to pass both House and Senate.