The House today passed a measure aimed at keeping employers and jobs in Pennsylvania, saving tax dollars and helping hospitals remain open, said Majority Leader Mike Turzai (R-Allegheny). House Bill 1 (Schroder-R-Chester) "The Fair Share Act," passed by a vote of 112-88.
"This simple, reasonable and responsible lawsuit abuse reform will help put an end to deep pocket frivolous lawsuits and is a necessity if we want to improve Pennsylvania's economic and health care climate," Rep. Turzai said. "The current system is susceptible to abuse by plaintiff lawyers seeking co-defendants with deep pockets such as large employers, hospitals or state and local governments."
The Fair Share Act eliminates joint liability for defendants in civil cases found to be less than 60 percent liable and implements a system of comparative responsibility in which a defendant is responsible for paying only his fair share of the damages. That means if a party is responsible for 10 percent of the fault, that party would be accountable for paying only 10 percent of the total award.
Under current law, the doctrine of joint and several liability establishes that a defendant in a multi-defendant civil case may be required to pay damages associated with the actions of its co-defendants.
"Excessive and frivolous lawsuits hinder job growth and hurt taxpayers by increasing costs for business, health care, consumer goods and services,'' Gov. Corbett said. "This is a key component in addressing the issue most important to Pennsylvania – jobs.''
"This legislation will ensure that an individual's level of financial culpability is assessed in a fair and equitable manner, instead of an assessment of the person's financial assets,'' Gov. Corbett said. "This is the first step toward a comprehensive tort reform solution.''
"The General Assembly has shown vision and leadership in passing this legislation,'' Gov. Corbett said. "I can assure you that when this important measure arrives on my desk in its current form, I will sign it into law. I stand ready and willing to work with the House and Senate to institute meaningful tort reform.''
Each year, according to the acting attorney general, the Commonwealth is sued several hundred times; currently, more than 1,300 tort cases are pending against the state. The majority of these cases involve the Department of Transportation where an uninsured, or under-insured, driver caused death or bodily injury. The plaintiffs are just looking for someone to pay, regardless of fault.
The current system of joint and several liability has a direct impact on Pennsylvania taxpayers who are left paying the share of others who are at fault.
House Bill 1, the Fair Share Act, uses the same compromise language as Act 57 of 2002 which was signed into law by Gov. Mark Schweiker. It was challenged in court by House Democrat leaders on procedural, not substantive, grounds. They wanted to stop the reform – and succeeded. The Fair Share Act was again passed in 2006, but it was vetoed by Gov. Ed Rendell, though he had previously promised support.
"Enacting this reform measure into law sends a strong message that Pennsylvania will no longer tolerate people who want to abuse the system for their own financial benefit," Rep. Turzai said. The Fair Share Act is a commonsense measure that restores fairness and balance to Pennsylvania's judicial system."
Pennsylvania is one of only nine states to have not modified or abolished the system of joint liability.
