Gov. Mary Fallin of Oklahoma has signed three major pieces of tort reform legislation to law, discouraging abusive and frivolous lawsuits and improving the state’s business climate. From her April 5 statement:

For too long, inflated legal fees have been an unnecessary cost-driver in the private sector and a burden on the medical community. As a result, we’ve seen businesses and doctors choose to locate in other states, depriving our citizens of good jobs, reducing access to medical care and driving up the costs for medical treatment.

I’m thrilled to be able to sign into law measures which will directly address skyrocketing legal fees, protect our doctors, and help to bring more jobs and businesses into Oklahoma while still protecting the rights of plaintiffs and those who have suffered injuries. This is a great day for anyone who is committed to building a more prosperous state and a stronger economy.

The three bills she signed: (continue reading…)

Legislatures across the country are working to enact civil justice reforms to improve their business climates, attract investment and encourage job creation. A round-up:

TENNESSEE

Gov. Bill Haslam of Tennessee included a package of reforms in his legislative recommendations, calling for a $750,000 cap on non-economic damages, such as pain and emotional suffering, and limiting punitive damages to $500,00. The bill also discourages venue shopping.

The bill (SB1522) was heard in committee on Wednesday, and the media predictably highlighted the comments of former Sen. Fred Thompson, hired by the trial lawyers to lobby against the bill. A new business group, Tennesseans for Economic Growth, has formed to promote the reforms. From its release:

“Our current civil justice system in Tennessee is seriously flawed because it threatens current business owners and jobs creators with unlimited exposure to litigation,” said Doug Buttrey, who has been named Executive Director of TEG. “This flaw in our civil justice system also puts Tennessee at a competitive disadvantage when it comes to attracting new businesses and jobs, especially since our state is one of the few in the Southeast which has yet to rein in lawsuit abuse through tort reform.”

“Tennesseans for Economic Growth believes it is critical that every citizen has access to the civil courts and that medical expenses be fully compensated. It is equally critical that damage awards do not spin out of control and become beyond reason,” Buttrey continued.

Doctors are also advocates for the reforms.

WISCONSIN

Wisconsin Gov. Scott Walker made tort reform the keystone of his early legislative efforts, winning passage of a package of civil justice improvements during the special session. (Shopfloor, Jan. 28, “Gov. Walker Signs Tort Reform Package in Wisconsin.” However, union groups have turned the April 5th Supreme Court race into a referendum on Gov. Walker’s collective bargaining reforms, and the trial lawyers are joining in the hopes their hand-picked candidate will overturn the tort reform law from the bench. (See our Point of Law post, “Wisconsin Supreme Court election: a referendum on tort reform, too.“)

OKLAHOMA

In Oklahoma, long-frustrated reforms now appear headed for passage in the Legislature and signing into law by new Gov. Mary Fallin. Last week, the major measure, passed the House by a vote of 57-40, the State Chamber of Oklahoma reports: (continue reading…)

The Edmond Sun covered the speech Wednesday of John Engler, president of the National Association of Manufacturers, at the State Chamber of Oklahoma’s public affairs conference in Oklahoma City. It’s a clear recounting of Engler’s message on energy. From “Manufacturers CEO calls for more government support for energy“:

OKLAHOMA CITY — A long list of noes from the federal government has suppressed the energy industry’s ability to lessen the country’s dependence on foreign energy resources, said John Engler…

In a country where the last nuclear plant was completed in the 1980s, the last oil refinery plant was completed in the 1970s and lawsuits have stopped the construction of coal power plants, Engler said, the energy industry is in dire need of less regulation and more support from the federal government.

However, Oklahoma has a history of bipartisan support for energy development, Engler said, which is one reason why the state’s unemployment rate is 3 percentage point below the national rate.

The Oklahoma Senate is set today to debate H.B. 1603, the Comprehensive Lawsuit Reform Act, attempting to bring a measure of predictability and reasonable costs to the state’s civil justice system. Tort reform has been a controversial topic for several years now in Oklahoma, especially after Gov. Brad Henry, a Democrat, campaigned in support of civil justice reform and then vetoed legislation to accomplish it in 2007. (See Shopfloor.org posts.)

The State Chamber of Oklahoma, a leading advocate of the bill, notes what’s at stake — jobs:

While Texas was once a hotbed of lawsuit mania, in 2003 they enacted a wide array of reforms which restored balance to the state’s legal system, restrained rapacious personal injury lawyers, and spurred economic opportunity. The results speak for themselves. Texas now has the best business climate in the nation according to Site Selection Magazine. Not surprisingly, the state also has the highest number of job creation announcements.

The Chamber has provided a copy of the conference report summarizing the legislation here, and the bill’s text is here.

For a good summary and an argument in support, see this Daily Oklahoman editorial, “Agreement could put issue behind lawmakers.”

One of Henry’s chief objections to the 2007 bill was its $300,000 cap on non-economic damages (pain and suffering). The new language includes a $400,000 cap, but that can be waived in cases of catastrophic injury or gross negligence. In medical liability cases, payments above $400,000 will come from an indemnity fund to be created by a task force.

This latest proposal redefines what makes up a frivolous lawsuit and gives judges more latitude to dismiss lawsuits they believe don’t have merit. The agreement also includes changes to joint-and-several liability rules, which should mean individuals or entities that are only partly liable for a tort claim aren’t made to pay as much as those most responsible.

There are also important provisions setting standards for expert witnesses, as well as requiring certificates of merit for lawsuits charging professional negligence — a key factor in controlling medical malpractice costs.

Governor Henry seems on board, quoted in this Tulsa World editorial, “A balance: Tort reform appears reasonable,” as calling the bill “perhaps the most comprehensive tort bill in state history” that “appears to strike the delicate balance” necessary for reforms that preserve the public’s right to it day in court.

The World concludes, “Tort reform has been one of the most fractious debates of the past 20 years…
It’s time to move forward.” Right.

UPDATE: (More at TortsProf Blog)