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Article published Feb 17, 2005
House passes lawsuit limits

Robert W. Dalton
Staff Writer


COLUMBIA -- The state House on Wednesday passed a bill that overhauls the state's civil justice system.In the most far-reaching change, the House eliminated joint and several liability -- the "deep pockets" rule that said if multiple parties are responsible for a person's injuries, one party could be forced to pay an entire award if the others can't pay, even if that party had the least responsibility for the injuries.Under the bill passed Wednesday, a defendant would be responsible only for the portion of the injuries it caused."The big winner here is the business community," said House Speaker Pro Tem Doug Smith, R-Spartanburg. "We dealt with joint and several liability in a way that nobody expected."Rep. James Smith, D-Columbia, said the losers were easy to identify as well: The people of South Carolina."We start out protecting conclusively proven wrongdoers when we do away with joint and several," Smith said. "Innocently injured South Carolinians will be left holding the bag."The bill also:uEliminates venue shopping -- the practice of filing a lawsuit in counties where awards might be higher. Lawsuits must now be filed where the injured party lives or where an accident occurred.uReduces from 13 years to eight years the time a homeowner has in which to sue a builder for construction defects.uIncreases penalties for lawsuits deemed frivolous by the trial judge."A lot of heavy lifting went into passing this bill," said Speaker David Wilkins, R-Greenville."It goes a long way in better protecting South Carolina businesses and citizens from unmerited lawsuits, jury shopping and the burgeoning costs associated with excessive jury costs."Rep. John Graham Altman, R-Charleston, said the bill would do more for insurance companies than it would for average citizens."Everybody said this was an act to protect citizens, but nobody's told me how," said Altman, the only Republican to vote against the measure."Insurance companies have all the money in the world. They keep it by not paying claims."Michael Fields, state director of the National Federation of Independent Business, called the bill a good start."We asked for four things and they addressed four things," Fields said. "We've got to feel pretty good about where we are in February."I think it relates to the fact that we've done a good job as small-business owners and the business community in convincing them that a person ought to be held accountable only for their portion of an injury. South Carolinians understand fairness."The House approved the bill by a 101-15 margin. The vote came about two hours after Gov. Mark Sanford held a news conference calling for quick action."It's very important for our state's ability to compete that we pass real tort reform," Sanford said.Sanford said Georgia's passage of tort reform legislation earlier in the week -- it also eliminated joint and several liability and capped damages for pain and suffering at $350,000 -- put that state even further ahead of South Carolina in the competition for capital investment and new jobs."Georgia was already beating us. They enhanced their ability with what they did yesterday," Sanford said.The bill will receive third reading today and then will be passed to the Senate.Robert W. Dalton can be reached at 562-7274 or bob.dalton@shj.com.