The Wisconsin Senate on Tuesday passed SBJR1, Gov. Scott Walker’s tort reform package, by a vote of 19-14. Republicans voted for the bill, Democrats against it.

In a news release, Sen. Scott Fitzgerald (R-Juneau) cited major provisions of importance to manufacturers:

• Manufacturer protection: forcing lawsuits for legal damages to prove that the defendant actually manufactured the product that caused the damage;
• Punitive damage reform: Sets a cap on punitive, noneconomic damages, which are currently unlimited. Recovering for actual economic damages is still allowed and uncapped;
• Frivolous lawsuit reform: punish and ultimately prevent lawsuits with malicious intent or the sole intent of harassing a defendant.

This bill sets specific standards for improving the state’s tort climate, giving business greater confidence that they can thrive in Wisconsin instead of worrying about frivolous lawsuits and trial attorneys chasing the deepest pockets.

Wisconsin Manufacturers and Commerce issued a news release before the vote, urging passage. More from WisPolitics.com.

Upon taking office, Wisconsin Gov. Scott Walker quickly called the Legislature into special session to pass jobs-related legislation, including a major tort reform package. As we report at Point of Law, the Senate is expected to debate the bill on the floor today, the House could act on Thursday, and the legislation could go to the governof for his signature by the end of the week.

Wisconsin Manufacturers and Commerce, representing the people who create jobs, is proving an effective advocate for the reforms, testifying last week before the Senate Judiciary Committee. From WCM, “Lawsuit Reforms Needed to Help Job Creation”

MADISON– Lawsuit reforms proposed by Governor Scott Walker and lawmakers will send a signal to employers that Wisconsin is open for business and is a great place to create jobs, WMC said Tuesday.

“Wisconsin businesses need to know that our legal system is fair and predictable,” said James A. Buchen, vice president of government relations for Wisconsin Manufacturers & Commerce. “Governor Walker has put forward a common sense set of legal reforms that send a message to employers that our state is serious about improving our business climate.”

After being amended by the Senate committee, the bill would impose a cap of punitive damages of twice compensatory damages or $200,000, whichever is greater. State standards of proof would now reflect the Daubert standard, discouraging suits based on “junk science,” and the law’s provisions would be applied prospectively only. The bill would eliminate “risk contribution” theory in manufacturing lawsuits. The Wisconsin Supreme Court created the standard allowing plaintiffs to sue any lead paint manufacturer that sold paint in the state without proving which product caused the harm.

In Texas, similar issues — and the results of the 2010 gubernatorial and legislative elections — are encouraging passage of tort reform, as well. From the Office of Gov. Rick Perry, news release, Jan. 13, “Gov. Perry Calls for Expanded Lawsuit Reform in Texas”: (continue reading…)

By a vote of 104-9, the South Carolina House of Representatives on Wednesday passed H. 3489 to restrain litigation costs and make the state more attractive to business investment.

House Speaker Bobby Harrell (R-Charleston), the chief sponsor, said in a statement:

Today, by passing our comprehensive Business Tort Reform Bill, the House took another major leap forward in making South Carolina a great place to do business. Maintaining our low-tax and pro-business climate is key to our state’s economic recovery.

This reform bill will help secure our state’s economic future by reducing the cost of running a business, creating a more fair court system and making South Carolina more competitive. Our neighboring states have already enacted such Tort Reform provisions, putting our state at a disadvantage. Unlike a business in a neighboring state, a business in our state is too often one lawsuit away from being put out of business.

According to the state Chamber of Commerce’s summary, H.3489 provides language for limits on punitive damages, addresses attorneys’ fees, establishes a cap for businesses on the amount of bond a business must post to file an appeal, addresses the statute of repose for building code violations and repeals the prohibition on the admissibility of failure to use a seat belt. The limit on punitive damages in civil cases is $350,000.

• Greenville Online.com, “House OKs cap on tort reform“
• Associated Press, “House gives tort reform bill key approval“

California Gov. Arnold Schwarzenegger proposed a “California Jobs Initiative” in his State of the State address last week, a legislative package he described in more detail at an event Monday in Torrance. The site was Ace Clearwater Enterprises, which manufactures complex formed and welded assemblies for the aerospace and power generation industries. (The company president is Kellie Johnson, a member of the NAM’s Executive Committee.)

The Governor’s plan is quite substantive, framed around these goals: To create 100,000 new jobs and train an additional 140,00 Californians; to streamline regulations to get shovels into the ground, extending the home buy tax credit; and to eliminate sales taxes on green-tech manufacturing equipment.

The fifth element — tort reform — is worth of special note given the efforts to block or even reverse legal reform in Congress. The fact sheet for the jobs initiative summarizes the section, “Reforming The Legal Climate For California’s Businesses”:

To foster an atmosphere where businesses can thrive, the Governor will propose a series of changes to regulations governing class action law suits, products liability suits and seek to cap punitive damage awards. Unfair and frivolous suits impact where companies locate or expand. California’s current litigation laws lead to large settlements with little value to consumers but become worth millions to lawyers at the expense of California businesses. Current statutes also impede growth by holding businesspersons liable for defective products – even if the seller had no knowledge or control over the defect – and allowing for punitive damage awards that are wildly unpredictable among similar cases.

The Governor will propose a set of statutory changes that will set forth clear guidelines for class action lawsuits improve California’s litigation climate by allowing defendants to appeal class action certifications and by requiring the plaintiff rather than the defendant to pay for notification to other potential class members. In addition, these reforms will provide for limitations on the scope of damages assessed against business persons for defective products and eliminate unreasonable and excessive noneconomic and punitive damages awards.

For more, see the the California Civil Justice blog, “Gov. Schwarzenegger Urges Legal Reforms to Improve Climate for California Businesses, and Dan Pero at AmericanCourthouse.com, “Schwarzenegger to Fight for Legal Reform.”

From AP: “WASHINGTON (AP) — US Supreme Court cuts $2.5 billion judgment to victims of Exxon Valdez disaster.” No ruling on the D.C. guns case, Heller.

ScotusBlog has been live blogging today’s public session and links to the Exxon Shipping v. Baker decision.

The NAM had filed an amicus brief supporting the appeal by Exxon Shipping. You can find a description of the case and our brief at our Legal Beagle site.

UPDATE: (10:38 a.m.) More from AP:

WASHINGTON (AP) — The Supreme Court on Wednesday cut the $2.5 billion punitive damages award in the 1989 Exxon Valdez disaster to $500 million.

The court ruled that victims of the worst oil spill in U.S. history may collect punitive damages from Exxon Mobil Corp., but not as much as a federal appeals court determined.

Justice David Souter wrote for the court that punitive damages may not exceed what the company already paid to compensate victims for economic losses, about $500 million compensation.