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Friday, December 10, 2004

Law - Ohio sets new lawsuit limits

"Ohio sets new lawsuit limits: Legislators put caps on damages, punitive awards" is the headline to a story today in the Cincinnati Enquirer. Some quotes from the story:

The Ohio General Assembly passed a sweeping, business-friendly bill to change the state's personal injury lawsuit system early Thursday, enacting caps on some forms of pain-and-suffering damages and punitive awards.

Gov. Bob Taft commended passage of Senate Bill 80, and it will become law 90 days after he signs it. "A fair and effective civil justice system is an essential part of promoting and sustaining an attractive business climate in Ohio," he said Thursday.

But whether the bill has the long-term effect of attracting businesses, creating jobs and reducing business insurance rates in Ohio remains in doubt.

Two previous tort reform bills have been declared unconstitutional in the past decade, and many believe this bill - or portions of it - may face the same fate.

Read the story for a thorough analysis of the bill's provisions.

And what of Indiana? Indiana's punitive damages allocation statute, IC 34-51-3-6, provides that an award of punitive damages is to be paid to the clerk of the court, who is then to pay 75% to the State's Violent Crime Victims' Compensation Fund and 25% to the plaintiff. This law was enacted in 1998. The law was challenged and upheld by the Indiana Supreme court in the case of Cheatham v. Pohle (5/30/03). Access the Indiana Law Blog coverage of the opinion here. The 7th Circuit recently relied on Cheatham in its opinion in Juarez v. Menard, Inc. (April 2004). See Indiana Law Blog coverage here.

The above is adapted from this 5/15/04 ILB entry.

Posted by Marcia Oddi on December 10, 2004 09:30 AM
Posted to General Law Related