Oklahoma GOP Squeezing Opponents of Lawsuit Reform

Republicans lawmakers eager for new civil justice guidelines that would change the way Oklahomans file and litigate lawsuits are putting the squeeze on their opponents with a flurry of legislation that offers a variety of options to get some form of lawsuit reform through the Legislature and on Gov. Brad Henry’s desk.

And if the Democratic governor vetoes it like he did two years ago, the GOP’s even got a plan for that.

The state House was split along party lines last week when it adopted a 228-page bill that would make sweeping changes to the state’s civil justice system that supporters say are needed to block frivolous lawsuits and lower the price companies and doctors pay for liability insurance.

Among other things, the measure would cap non-economic damages, also known as pain and suffering, at $300,000, require a certificate from an expert that a lawsuit has merit before it can proceed in state court and change class-action lawsuit guidelines.

The measure, now pending in the Senate, is the top goal of leaders of the Republican-controlled Legislature this year. And they have introduced a bevy of other bills designed to apply political pressure on opponents and force them to negotiate a lawsuit reform proposal.

The House narrowly approved legislation that asks voters to lower the cap on contingency fees charged by trial attorneys. If passed in a statewide vote, the measure would limit fees on damage awards to their clients at 33 percent of the first $1 million recovered and 20 percent on higher awards.

Attorneys would still be able to collect costs and expenses they incur in pursuing the case on top of contingency fees. Contingency fees are currently capped at 50 percent in addition to attorney expenses and costs.

The House and Senate have also passed other bills that could be used as vehicles to change civil justice procedures if the need arises.

Opponents, primarily Democrats and attorneys who represent accident and medical malpractice victims, say the measures place corporate profits over the interests of injured people.

“The main focus of any legislation dealing with the civil justice system needs to be on the thousands of Oklahomans who are wronged by insurance companies or injured by a defective product each year,” said Matt Latham, political director of the Oklahoma Association for Justice, comprised of lawyers who practice in civil court.

“The only people who will benefit from this are insurance companies. And right now they are hiding behind doctor’s coats,” said Jeff Raymond, executive director of OKWatchdog, a nonprofit consumer and patient advocacy group.

But one way or the other, legislative Republicans are confident they will get something enacted into law.

“I think we’ve got a great opportunity to get something done that will definitely move the bar forward and the governor will sign,” said Rep. Dan Sullivan, R-Tulsa, author of the lawsuit reform legislation.

“There’s limitless numbers of scenarios,” Sullivan said. “We’re going to get something accomplished, either a bill that’s signed by the governor or a vote of the people.”

Supporters of lawsuit reform have not always been so optimistic. It was not a high priority when the Legislature was controlled by Democrats, and previous proposals have either been vetoed by Henry or struck down by the Oklahoma Supreme Court.

In 2007, Henry vetoed legislation that contains many of the same provisions that are in the current civil justice bill.

While Henry is withholding judgment until he has a chance to study the bill, his communications director, Paul Sund, would not rule out another veto.

“If they send the exact same bill, they can probably expect a similar result,” Sund said. “Governor Henry supports efforts to reduce frivolous lawsuits, but he also believes we have to keep the doors of the courthouse open to all citizens.”

Faced with the threat of another veto, Republicans developed the contingency fee referendum as a Plan B to squeeze trial attorneys whose income from damage awards they win for their clients would be severely reduced if the ballot measure is approved by voters.

The hope is that opponents will be forced to the bargaining table and accept some or all of the GOP’s plan, said Senate President Pro Tem Glenn Coffee, R-Oklahoma City.

“We stand ready to pass the referendum if they don’t come to the table in good faith and negotiate with us,” Coffee said. If no agreement is reached, Republican leaders will work to push the contingency fee referendum to the ballot box.

Coffee said “there have been some initial conversations” with members of the trial bar, but he declined to elaborate.

Any negotiated agreement would likely be in the form of separate legislation that would contain elements of the comprehensive bill, according to Sullivan.

“We’re just trying to find somebody to deal with,” Sullivan said. “We’re looking for someone who is willing to come up with their own ideas.”

A new public opinion poll indicate proponents of lawsuit reform have plenty of support.

The poll by SoonerPoll.com found that 64 percent of the Oklahomans questioned support legislative efforts to pass significant lawsuit reform and decrease the number of lawsuits filed in the state.

And 81 percent said they support letting voters decide if they want to lower the current maximum attorney fee from 50 percent to a lesser amount.

The poll was conducted between Feb. 27 and March 4 and had a margin of error of plus or minus 5.32 percent.

Coffee said the poll validates the GOP’s position.

“Oklahomans across the economic and political spectrum are fed up with losing business opportunities and access to top quality doctors to our neighboring states, and they want their leaders to do something about it,” Coffee said.