HARRISBURG, Pa., Dec. 11, 2003 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry today praised state Rep. Curt Schroder, R-Chester, for introducing legislation (H.B. 2234) that would set strict standards for the awarding of punitive damages.
The bill, which would raise the standard for establishing punitive damages to one of "beyond a reasonable doubt," is a component of the PA Chamber's lawsuit abuse reform package.
"Unreasonable punitive damages needlessly prolong litigation, stifle economic growth and job creation, and force many defendants to settle unwarranted claims rather than risk ruinous damage awards," said Floyd Warner, president of the PA Chamber.
Warner said despite a favorable ruling by the U.S. Supreme Court this past spring to require that punitive verdicts be proportional to the harm suffered by a plaintiff and no more than nine times a plaintiff's actual loss, punitive damages continue to be a problem for states, such as Pennsylvania, that do not have laws that limit the amount juries can award as "punishment."
"Our nation's legal system costs more than $200 billion annually, and lawsuits have cost the U.S. economy nearly $3 trillion since 1975," Warner said. "These out-of-control costs and the fear of frivolous lawsuits hinder new product development and business expansion, and result in higher prices for consumer goods and services. There is a definitive need to restore balance and fairness to Pennsylvania's legal system."
The bill would also help ease the current medical malpractice insurance crisis. It would require that 80 percent of punitive awards be distributed to the state's MCARE Insurance Fund to help reduce the annual assessment on doctors. The fund provides $500,000 of medical malpractice coverage for the state's physicians and health-care professionals, who must pay into the fund each year for secondary coverage.
"The PA Chamber looks forward to working with Representative Schroder and other members of the General Assembly to secure passage of this legislation," Warner said.
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association and the fastest growing state chamber in the United States, with more than 10,000 members covering all 67 counties. More information is available on the Chamber's website at www.pachamber.org
The PA Chamber of Business and Industry logo is available at:http://media.primezone.com/prs/single/?pkgid=353