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Posted on Sat, Jan. 10, 2004 story:PUB_DESC
Tort reform key S.C. issue
State’s business community to push for legislative action

Business Editor

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.

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