Pennsylvania's Republican-controlled legislature has sent Democratic Gov. Edward Rendell legislation reforming the joint and several liability law which can leave one defendant on the hook for payment when others cannot pay.
A spokeswoman for the governor said he has until Sunday to make a decision and is currently reviewing the legislation.
Under the current joint and several liability law, if one of several defendants does not have enough money to pay a judgment, then the other defendants must pay that share. Plaintiffs can sue multiple defendants and be reimbursed for an entire damage award from one defendant.
Under language in the bill, where recovery is allowed against more than one person, when a jury attributes liability to more than one defendant a defendant is liable for a proportionate amount of the award based on that defendant's share of fault.
Supporters of the measure say that SB 435, sponsored by Sen. Jake Corman, R- Bellefonte, and known as the Fair Share Act, will help improve the state's business climate and protect businesses from frivolous lawsuits.
"This is an important victory for the people of Pennsylvania," stated Taylor Cosby, AIA vice president, Mid-Atlantic region. "The leaders of both houses of the legislature are to be commended for doing the right thing."
In 2002 the legislature passed a similar bill that was signed by the Republican acting governor. But a state court overturned the law on a procedural issue.
SB 435 passed the House by a vote of 118-81 last week, and the Senate by a vote of 26-24 in December. Republicans control both chambers.
The bill will limit joint and several liability to a defendant who is found at fault for no less than 60 percent of the total liability apportioned to all parties.
If found negligent under that provision, the party is only required to pay a percentage of damages equal to the percentage of causal liability.
AIA spokeswoman Julie Pulliam said a similar bill was passed in the Florida House of Representatives last week but faces tougher sledding in the Senate due to the influence of trial lawyers.
"But this is Gov. Jeb Bush's only tort reform priority for this his final year, and AIA feels very optimistic that it will pass," Ms. Pulliam said.
In addition, in Illinois a joint and several reform bill was introduced in the House but never got to the floor, and so it is dead for the year, she said.
Over the past few years, Georgia, South Carolina and Mississippi passed various measures reforming the joint and several doctrines.
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