Tort Reform Comes To Oklahoma

On April 5, Oklahoma Gov. Mary Fallin signed sweeping tort reform legislation into law. With the Governor’s signature the state placed a $350,000 hard cap on non-economic damages. Thirty states have now placed similar hard caps on non-economic damages, not including Oklahoma.

The new law will not impact economic damages, such as lost wages, medical expenses and future loss of expected wages. The bill also includes an exception to the cap in cases of malicious conduct, gross negligence and reckless disregard.

Another bill signed by Gov. Fallin eliminates joint and several liability, sometimes known as the “deep pocket” rule, where each and every defendant in a tort lawsuit is liable for the entire amount of a plaintiff’s damage regardless of their degree of fault. The new law eliminates the “deep pocket” consideration, ensuring that plaintiffs seek defendants who are most at fault rather than defendants with the most financial assets.

The final portion of the reform package requires that juries be instructed in civil cases that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax; and the jury should not consider income taxes when determining a proper compensation award.

Best quote comes from an editorial in The Daily Oklahoman, “YES, trial lawyers will probably sue to block implementation of landmark tort reform legislation enacted by the Legislature. Sue is what they do. They do it well and they make a good living from it.” ◆