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April 3, 2006

Pennsylvania Gov. Rendell not shy with his veto pen

Pennsylvania Governor Edward G. Rendell recently vetoed
legislation designed to scale back the obligation of defendants to pay damage awards in civil lawsuits.

He also nixed legislation that would have capped the damage award homebuilders must pay for faulty work and regulated the ability of property owners to sue.

Rendell explained his veto of the defendants’ damages measure, Senate Bill 435, by maintaining that the bill did not go far enough to protect the rights of victims in cases of negligence.

He said the bill would have appropriately limited the doctrine of joint and several liability, but was not balanced and urged continued bipartisan work on the subject.

Lawyer groups and business and insurance advocates have battled over the legislation, which was geared to replace a 2002 law that was never enforced before it was struck down by the Supreme Court last year.

Supporters said it would improve the state’s business and insurance climate and curtail frivolous lawsuits. However, opponents said it would severely limit injured victims’ compensation.

The bill sought to prevent victims from suing multiple defendants with one lawsuit. In addition, defendants would only have to pay the portion of the damages proportionate to their liability, unless they were at least 60 percent liable or their actions were intentional.

Under current law, victims can sue multiple defendants and be reimbursed for an entire damage award. If a defendant does not have enough money to pay his share, then the other defendants must pay that share.

Referring to the 200-year-old joint and several liability doctrine, Rendell acknowledged that it “has produced inequitable and unfair results that have had a detrimental impact on businesses.”

He noted that bipartisan attempts in the General Assembly to achieve an appropriate balance, failed narrowly. “I believe we must find a better way – a law that will balance the equities between our businesses and the victims of negligence.”

The governor also vetoed legislation that would have capped the damage award homebuilders must pay for faulty work. This measure would also have regulated the ability of property owners to sue.

The legislation had been deemed unconstitutional by Attorney General Tom Corbett, a Republican whose opinion the Democratic governor solicited.

One section of the bill would limit a damage award to the cost of the repairs if the property owner rejects a “reasonable” offer by the contractor or does not allow the contractor to repair the problem. Another requires the property owner to notify contractors 75 days before suing.

Corbett said the legislation would have violated a constitutional provision that bars the Legislature from limiting civil damages that a victim may recover. In addition, the legislation possibly trespassed on the authority of the state Supreme Court to regulate the legal process, Corbett said.

Topics Lawsuits Legislation

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Insurance Journal Magazine April 3, 2006
April 3, 2006
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