Reforming South Carolina’s civil justice system remains one of
the business community’s primary objectives for this legislative
session, which begins Tuesday.
House Speaker David Wilkins, R-Greenville, vowed earlier this
week that tort reform legislation could make it to the House floor
as early as next week.
Wilkins said he expects the House Judiciary Committee to approve
the legislation when it meets Tuesday afternoon.
Tort reform bills introduced last year in both the House and
Senate languished in their respective chamber’s judiciary
committees. Since the Legislature adjourned in June, the bills have
been assigned to subcommittees and received numerous hearings.
Wilkins’ vow is good news for the S.C. Chamber of Commerce, which
lists legal reform as one of the top issues on its 2004 Business
Agenda.
The S.C. Small Business Chamber of Commerce and the state chapter
of the National Federation of Independent Business also have made
judicial reform a priority.
“By getting ahold of spiraling legal costs and preventing the
passage of any new taxes, the General Assembly can send a real
message to Main Street,” said Michael Fields, NFIB state
director.
Only South Carolina and Montana have not undertaken meaningful
tort reform, said Hunter Howard, president of the S.C. Chamber of
Commerce.
According to the state chamber, a recent study by the U.S.
Chamber of Commerce ranked South Carolina in the bottom 10 states
for its overall liability system, making it one of the worst tort
climates in the nation.
The lack of judicial reform detracts from the state’s overall
positive business climate, chamber leaders say.
The reform legislation being supported by the chambers would,
among other things:
• Limit noneconomic damages to
$250,000 for things like emotional distress
• Restrict punitive awards to
cases where intentional misconduct, fraud or actual malice is
proven. Also, limit punitive damages to three times the amount of
compensatory damages or $250,000, whichever is greater.
• Require lawsuits to start in the
county where the defendant lives, has its principal business or in
the county when the injury or loss occurred
• Allow a contractor, engineer or
architect to repair defective property before a lawsuit can be
filed
• Reduce to six years from 13 the
period during which a person could file a lawsuit against a building
contractor or designer once the work is done.
Early approval by the House Judiciary Committee does not
guarantee smooth sailing through the full House and Senate.
Tort reform has been opposed by the S.C. Trial Lawyers
Association, which is not about to give in without a
fight.