Legislative Alert

Medical Liability
Tuesday, November 16, 2010


HB1603Paraphrase:creates the Comprehensive Lawsuit Reform Act of 2009. It states that in any civil action for professional negligence, the plaintiff must attach to the petition an affidavit that includes a written opinion from a qualified expert that the claim has merit. If such an affidavit is not filed, a court may dismiss the petition without prejudice. It sets forth procedures for a plaintiff to request an indigency exemption from providing an affidavit of merit. It requires such person to submit an appropriate application and a nonrefundable application fee of $40. It allows a court to defer all or part of the fee. It directs the Supreme Court to promulgate rules governing determination of indigency by Dec. 1, 2009. The measure also states that a court may decline to exercise jurisdiction and stay, transfer or dismiss the action if it is in the best interest of justice and the convenience of the parties. It allows actions to be dismissed by the plaintiff without court order by filing a notice of dismissal at any time before service by the adverse party of an answer or motion for summary judgment, whichever is first, or filing a stipulation for dismissal signed by all parties appearing in the action. It states that if a plaintiff files a notice of dismissal after discovery has commenced, the action will not be dismissed without prejudice without the consent of the defendant. The bill also modifies the language related to prejudgment interest, stating that beginning Nov. 1, 2009, prejudgment interest shall begin to accrue 24 months after the suit resulting in the judgment was commenced. It directs that postjudgment and prejudgment interest be calculated using a rate equal to the average U.S. Treasury Bill rate of the preceding calendar year. It allows parties to obtain a stay of enforcement of a judgment, decree or final order during the time in which an appeal may be commenced or while an appeal is pending in any court inside or outside of the state. It also prohibits bonds filed when seeking a stay of enforcement from exceeding $25 million. The measure exempts appeals of punitive damages from an appeal bond requirement. The measure adds language related to Medicaid reducing its recovery to take account of the cost of procuring the judgment or settlement, setting forth procedures for the Oklahoma Health Care Authority to seek recovery. The measure sets forth language related to computation of the recovery if a Medicaid payment is less than the judgment or settlement amount and computation of the recovery if Medicaid payments equal or exceed the judgment or settlement amount. It places an additional cap of 10 percent of the net worth of the judgment debtor on bonds in any action or litigation brought involving a signatory, successor of a signatory or affiliate of a signatory of the Master Settlement Agreement or the Smokeless Tobacco Master Settlement Agreement. The bill modifies language related to claims for relief, changing reference from $10,000 to a section of law under the U.S. Code. It prohibits damages sought in excess of $10,000 but less than that set forth in the U.S. Code from exceeding the amount set forth in the pleadings, unless a good-faith-based change in circumstances arises. The bill modifies the definition of "frivolous" for purposes of a court's determination of whether a claim is frivolous. It modifies language related to filings of class actions. It requires a court order determining a class action entered on or after Nov. 1, 2009, to define the class and the class claims, issues or defenses and appoint class counsel. It states that such orders are subject to a de novo standard of review by an appellate court reviewing the order. For certified classes, the court may direct appropriate notice to the class. It limits class membership on actions filed after Nov. 1, 209, to individuals or entities who are residents of the state or non residents who own an interest in property in the state that is relevant to the action or who have a significant portion of the nonresident's cause of action arising from conduct within the state. The measure also modifies language related to dismissal or compromise in class actions, stating that claims, issues or defenses of a certified class may be settled, dismissed or compromised only with the court's approval. It sets forth procedures for such motions filed after Nov. 1, 2009. It also sets forth new language regarding class counsel, stating that a court-certified class must appoint counsel. It allows a court to award reasonable attorney fees and nontaxable costs in a certified class action. The bill also modifies language related to opinion testimony, allowing a qualified expert to testify in the form of an opinion if the testimony is based on sufficient facts or data, is the product of reliable principles and methods and if the witness has applied the principles and methods reliably to the facts of the case. The measure modifies language related to joint and several liability. It makes inapplicable a requirement that a defendant be joint and severally liable for damages if the percentage of responsibility attributed to the defendant is greater than 50 percent on actions brought by or on behalf of the state. It removes language that previously exempted political subdivisions of the state and actions in which no comparative negligence was found to be attributable to the plaintiff. The bill also states that in any civil action arising from a claimed bodily injury, there is no limitation on an award for economic loss. It also modifies the cap on noneconomic damages, instituting a $400,000 cap on noneconomic damages for civil actions arising from a claimed bodily injury, regardless of the number of parties against whom the action is brought or the number of actions brought. The measure also states that upon establishment of a Health Care Indemnity Fund, any damages awarded that exceed the $400,000 limitation are to be paid from the fund; however, such provision does not apply to any action that accrues before the date of enactment of the fund, which is to be established pursuant to the recommendations of a task force. The fund is to include professional liability insurance coverage requirements in an amount no less than $1 million for physicians and maintain availability of $20 million annually. The measure states legislative intent to purchase reinsurance of up to $20 million to cover judgments through the fund. It states that there is no limit on noneconomic damages that may be awarded in civil actions arising from a claimed bodily injury resulting from professional negligence against a physician if a judge and jury finds by clear and convincing evidence that the plaintiff or injured person suffered permanent and substantial physical abnormality or disfigurement, loss of use of a limb, loss of or substantial impairment to a major body organ or system; or the plaintiff or injured person has suffered permanent and physical functional injury that prevents him/her from being able to independently care for himself/herself and perform life sustaining activities; or the defendant's acts or failures to act were in reckless disregard for the rights of others, grossly negligent, fraudulent or intentional or with malice. It places no limit on the amount of noneconomic damages that may be awarded in an action arising from claimed bodily injury not resulting from professional negligence against a physician if it is found by a preponderance of the evidence that one of the three previous scenarios existed. It also sets forth guidelines for the court to enter judgments for economic damages and noneconomic damages. In jury-tried actions, the jury is not to be instructed with regard to the limit on noneconomic damages. It states that the limits are not to apply to actions brought under the Governmental Tort Claims Act or actions for wrongful death. The measure also creates an eight-member Health Care Indemnity Fund Task Force to study a mechanism for creating a health care indemnity fund to pay a portion of damages awarded by a court or settled and approved by a court in professional negligence cases against physicians. It requires the task force to report its findings to the Senate president pro tempore and House speaker by May 1, 2011. It removes the language related to admission of evidence of a remarriage or social situation of a surviving spouse of a decedent in actions to recover damages for injuries resulting in death. The bill modifies the language related to evidence of violations of child passenger restraint system requirements, allowing admission of such evidence in a civil action or proceeding for damages unless the plaintiff is a child under age 16. It prohibits peer review information discovered pursuant to a claim of independent negligence against a health care facility from being used as evidence unless a judge or jury first find the professional to have been negligent in providing health care to the patient in the facility. It allows credentialing and recredentialing data to be used if the civil action claims alleges the health care facility was independently negligent as a result of permitting the health care professional to provide services. The bill creates the Uniform Emergency Volunteer Health Practitioners Act, allowing the Department of Health to limit, restrict or otherwise regulate the duration of practice, geographical areas, types of practice and any other matters of volunteer health practitioners. It allows volunteer health practitioners registered with a registration system and who is licensed and good standing to practice in Oklahoma while an emergency declaration is in effect. The measure creates a Common Sense Consumption Act, the intent of which is to prevent frivolous lawsuits against manufacturers, packers, distributors, carriers, holders, sellers, marketers or advertisers of food products that comply with statutory and regulatory requirements. It states that no firearm manufacturer, distributor or seller who lawfully manufactures, distributes or sells firearms is liable to a person or entity, or to the estate, successors or survivors of either, for any injuries suffered, including wrongful death and property damage, because of the use of a firearm by another. It states a legislative finding that the unlawful use of firearms, rather than their lawful manufacture, distribution or sale, is the proximate cause of any injury arising from their unlawful use. It prevents an association from being liable to any person or entity for any injury suffered, including wrongful death and property damage, because of the use of a firearm sold or manufactured by any licensee who is a member of the association. The measure modifies language related to product liability, stating that a manufacturer or seller is not liable if the product is inherently unsafe and known to be unsafe by the ordinary consumer. The bill also creates the Asbestos and Silica Claims Priorities Act, establishing elements of proof for asbestos or silica claims, requiring a claimant in any civil action alleging an asbestos or silica claim to file a detailed narrative medical report and diagnosis with a claim. It requires such claimants with pending claims on Nov. 1, 2009, to file the written medical report and supporting test results within 180 days of Nov. 1, 2009, or within 60 days prior to the commencement of a trial, whichever comes first. It sets forth information that must be included in new asbestos or silica claims. It requires all asbestos and silica claims to be filed individually and prohibits claims on behalf of a group or class of persons. It sets forth other guidelines governing asbestos and silica claims. The bill also creates the Innocent Successor Asbestos-Related Liability Fairness Act, limiting the cumulative successor asbestos-related liabilities of an innocent successor corporation to the fair market value of the total gross assets of the transferor determined as of the time of the merger or consolidation. It adds language relating to the Oklahoma Livestock Activities Liability Limitation Act, adding language related to agritourism activities. The measure also repeals language related to expert affidavits in medical liability actions, prejudgment interest and emergency powers regarding licensing and appointment of health personnel. It makes provisions of the bill severable, providing that if any part or provision is held void, it does not affect or impair the remaining parts or provisions.
 Principal Authors:Daniel Sullivan (H), Glenn Coffee (S)
 Effective Date:11/01/2009Emergency:No
 Status Date:05/21/2009Current Status:Governor Action - Signed

HB1958Paraphrase:creates the Civil Justice Reform Act of 2009.
 Principal Authors:Chris Benge (H), Patrick Anderson (S)
 Effective Date:11/01/2009Emergency:No
 Status Date:03/17/2009Current Status:Dormant

HB2136Paraphrase:requires nursing facilities to maintain liability insurance coverage of at least $200,000 for each occurrence of negligence. It directs the Oklahoma Health Care Authority to promulgate rules necessary to administer requirement. The bill requires nursing homes that cannot afford insurance or, that are otherwise unable to provide insurance, inform the patient, relative or guardian.
 Principal Authors:Mike Shelton (H)
 Effective Date:11/01/2009Emergency:No
 Status Date:02/25/2010Current Status:Failed Deadline

SB0666Paraphrase:requires a court to appoint an independent attorney in class actions, if a request for award of attorney fees is made, and directs that the independent attorney be awarded reasonable fees on an hourly basis out of the proceeds awarded to the class. The measure requires that, when using an expert to prove liability, an affidavit regarding consultation with an expert must be filed within 60 days of filing a civil action petition. It requires Oklahoma Uniform Jury Instructions applicable in civil cases to include an instruction notifying the jury that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax and that compensation for personal injury or wrongful death should not be increased in consideration of taxes. The bill requires juries to render general verdicts, unless the parties requested particular findings of fact. It modifies language related to dismissals. It allows actions to be dismissed by the plaintiff without court order by filing a notice of dismissal at any time before service by the adverse party of an answer or motion for summary judgment, whichever is first, or filing a stipulation for dismissal signed by all parties appearing in the action. It states that if a plaintiff files a notice of dismissal after discovery has commenced, the action will not be dismissed without prejudice without the consent of the defendant. The bill states that no prejudgment interest can begin to accrue until 36 months after the suit resulting in the judgment was commenced. It allows parties to obtain a stay of enforcement of a judgment, decree or final order during the time in which an appeal may be commenced or while an appeal is pending in any court inside or outside of the state. It also prohibits bonds filed when seeking a stay of enforcement from exceeding $25 million or $1 million if the party posting the bond is an individual or business with 250 or fewer employees on the date of judgment. The measure exempts appeals of punitive damages from an appeal bond requirement. It also decreases from 180 to 120 days the time limit for service of process to defendants before the action may be dismissed. The bill modifies the definition of "frivolous" for purposes of a court's determination of whether a claim is frivolous. It requires a court to include a potential member in the class only if the potential member so requests by a specific date. The bill allows a party seeking to recover upon a claim, counterclaim, cross-claim or declaratory judgment to move for summary judgment 20 days after the action commenced or after service of a motion for summary judgment by the adverse party. It allows a defending party to move for summary judgment at any time. The bill also modifies language related to opinion testimony by lay witnesses and allows expert witnesses to offer expert testimony only with respect to the field in which he/she is qualified. It requires the court to hold a mandatory pretrial hearing, if requested by a party, to determine whether a witness qualifies as an expert. In cases of professional liability, the bill allows a jury to award punitive damages, in addition to actual damages, only if the jury finds clear and convincing evidence that the defendant was guilty of intentional or gross negligence. The bill also modifies requirements for the calculation and payment of future damages. The measure removes a requirement that a defendant be jointly and severally liable for damages recoverable by the plaintiff if the percentage of responsibility attributed to the defendant is greater than 50 percent. If a plaintiff receives compensation for harm or injuries from an independent source, the bill requires that information be admitted as evidence and the amount of compensation deducted from the amount of damages the plaintiff recovers. The bill establishes a $300,000 noneconomic damages cap for any action not arising out of contract, regardless of the number of parties against whom the action is brought or the number of actions brought with respect to personal injury. It directs the cap be adjusted annually based on positive increases in the Consumer Price Index. The cap could be lifted if a jury finds by clear and convincing evidence that the acts of the party causing damage were grossly negligent or committed intentionally and with malice. The cap would not apply to actions involving wrongful death. It requires plaintiffs seeking recovery for loss of earnings, loss of earning capacity, loss of contributions of a pecuniary value or loss of inheritance to provide evidence of the loss after reduction for income tax payments or unpaid tax liability. The measure removes language that allows evidence of violations of child passenger restraint system requirements to be admitted as evidence in a civil action or proceeding for damages. It prohibits peer review information discovered pursuant to a claim of independent negligence against a health care facility from being used as evidence unless a judge or jury first find the professional to have been negligent in providing health care to the patient in the facility. The measure requires skilled nursing facilities participating in Medicaid to establish and maintain quality assessment and assurance committees and makes records of such committees confidential and privileged and not subject to discovery or subpoenas and persons associated with quality assessment and assurance committee records could not be required to testify. It prohibits statements of deficiencies or Minimum Data Set related documentation issued to a nursing facility from being admitted into evidence unless the determination is final. It also prohibits such data from being used to establish a standard of care or negligence. The measure creates a School Protection Act to allow teachers, principals and other school employees to take reasonable actions to maintain order and discipline. The bill states that anyone age 18 or older who acts with intent to falsely accuse an education employee of criminal activity would be guilty of a misdemeanor punishable by a fine of not more than $2,000. It states that anyone between age 7 and 17 who makes such an accusation would be subject to community service or other court sanctions, at the discretion of the court. The measure states that the limitation for bringing an action for damages based in tort would be eight years from the date of the act or omission. The bill also makes peer review information private, confidential and privileged but allows a peer review body to provide relevant information to a state agency or board that licensed the professional under review. The bill modifies language related to immunity from civil liability for volunteers, stating that being legally entitled to receive compensation for the service or undertaking performed shall not preclude a person from being considered a volunteer. The measure creates a Common Sense Consumption Act, the intent of which is to prevent frivolous lawsuits against manufacturers, packers, distributors, carriers, holders, sellers, marketers or advertisers of food products that comply with statutory and regulatory requirements. It states a legislative finding that the unlawful use of firearms, rather than their lawful manufacture, distribution or sale, is the proximate cause of any injury arising from their unlawful use. The bill exempts from liability firearm manufacturers, distributors and sellers who lawfully manufacture, distribute or sell firearms in cases involving any injury suffered, including wrongful death and property damage, because of the use of a firearm by another. The measure repeals a section of the Oklahoma Mandatory Seat Belt Use Act relating to inadmissibility of evidence in civil actions of failure to use seatbelt and sections relating to limits on noneconomic damages in medical liability actions.
 Principal Authors:Anthony Sykes (S)
 Effective Date:11/01/2009Emergency:No
 Status Date:02/18/2010Current Status:Failed Deadline

SB0743Paraphrase:requires a court to appoint an independent attorney in class actions, if a request for award of attorney fees is made, and directs that the independent attorney be awarded reasonable fees on an hourly basis out of the proceeds awarded to the class. The measure requires that, when using an expert to prove liability, an affidavit regarding consultation with an expert must be filed within 60 days of filing a civil action petition. It requires Oklahoma Uniform Jury Instructions applicable in civil cases to include an instruction notifying the jury that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax and that compensation for personal injury or wrongful death should not be increased in consideration of taxes. The bill requires juries to render general verdicts, unless the parties requested particular findings of fact. It modifies language related to dismissals. It allows actions to be dismissed by the plaintiff without court order by filing a notice of dismissal at any time before service by the adverse party of an answer or motion for summary judgment, whichever is first, or filing a stipulation for dismissal signed by all parties appearing in the action. It states that if a plaintiff files a notice of dismissal after discovery has commenced, the action will not be dismissed without prejudice without the consent of the defendant. The bill states that no prejudgment interest can begin to accrue until 36 months after the suit resulting in the judgment was commenced. It allows parties to obtain a stay of enforcement of a judgment, decree or final order during the time in which an appeal may be commenced or while an appeal is pending in any court inside or outside of the state. It also prohibits bonds filed when seeking a stay of enforcement from exceeding $25 million or $1 million if the party posting the bond is an individual or business with 250 or fewer employees on the date of judgment. The measure exempts appeals of punitive damages from an appeal bond requirement. It also decreases from 180 to 120 days the time limit for service of process to defendants before the action may be dismissed. The bill modifies the definition of "frivolous" for purposes of a court's determination of whether a claim is frivolous. It requires a court to include a potential member in the class only if the potential member so requests by a specific date. The bill allows a party seeking to recover upon a claim, counterclaim, cross-claim or declaratory judgment to move for summary judgment 20 days after the action commenced or after service of a motion for summary judgment by the adverse party. It allows a defending party to move for summary judgment at any time. The bill also modifies language related to opinion testimony by lay witnesses and allows expert witnesses to offer expert testimony only with respect to the field in which he/she is qualified. It requires the court to hold a mandatory pretrial hearing, if requested by a party, to determine whether a witness qualifies as an expert. In cases of professional liability, the bill allows a jury to award punitive damages, in addition to actual damages, only if the jury finds clear and convincing evidence that the defendant was guilty of intentional or gross negligence. The bill also modifies requirements for the calculation and payment of future damages. The measure removes a requirement that a defendant be jointly and severally liable for damages recoverable by the plaintiff if the percentage of responsibility attributed to the defendant is greater than 50 percent. If a plaintiff receives compensation for harm or injuries from an independent source, the bill requires that information be admitted as evidence and the amount of compensation deducted from the amount of damages the plaintiff recovers. The bill establishes a $300,000 noneconomic damages cap for any action not arising out of contract, regardless of the number of parties against whom the action is brought or the number of actions brought with respect to personal injury. It directs the cap be adjusted annually based on positive increases in the Consumer Price Index. The cap could be lifted if a jury finds by clear and convincing evidence that the acts of the party causing damage were grossly negligent or committed intentionally and with malice. The cap would not apply to actions involving wrongful death. It requires plaintiffs seeking recovery for loss of earnings, loss of earning capacity, loss of contributions of a pecuniary value or loss of inheritance to provide evidence of the loss after reduction for income tax payments or unpaid tax liability. The measure removes language that allows evidence of violations of child passenger restraint system requirements to be admitted as evidence in a civil action or proceeding for damages. It prohibits peer review information discovered pursuant to a claim of independent negligence against a health care facility from being used as evidence unless a judge or jury first find the professional to have been negligent in providing health care to the patient in the facility. The measure requires skilled nursing facilities participating in Medicaid to establish and maintain quality assessment and assurance committees and makes records of such committees confidential and privileged and not subject to discovery or subpoenas and persons associated with quality assessment and assurance committee records could not be required to testify. It prohibits statements of deficiencies or Minimum Data Set related documentation issued to a nursing facility from being admitted into evidence unless the determination is final. It also prohibits such data from being used to establish a standard of care or negligence. The measure creates a School Protection Act to allow teachers, principals and other school employees to take reasonable actions to maintain order and discipline. The bill states that anyone age 18 or older who acts with intent to falsely accuse an education employee of criminal activity would be guilty of a misdemeanor punishable by a fine of not more than $2,000. It states that anyone between age 7 and 17 who makes such an accusation would be subject to community service or other court sanctions, at the discretion of the court. The measure states that the limitation for bringing an action for damages based in tort would be eight years from the date of the act or omission. The bill also makes peer review information private, confidential and privileged but allows a peer review body to provide relevant information to a state agency or board that licensed the professional under review. The bill modifies language related to immunity from civil liability for volunteers, stating that being legally entitled to receive compensation for the service or undertaking performed shall not preclude a person from being considered a volunteer. The measure creates a Common Sense Consumption Act, the intent of which is to prevent frivolous lawsuits against manufacturers, packers, distributors, carriers, holders, sellers, marketers or advertisers of food products that comply with statutory and regulatory requirements. It states a legislative finding that the unlawful use of firearms, rather than their lawful manufacture, distribution or sale, is the proximate cause of any injury arising from their unlawful use. The bill exempts from liability firearm manufacturers, distributors and sellers who lawfully manufacture, distribute or sell firearms in cases involving any injury suffered, including wrongful death and property damage, because of the use of a firearm by another. The measure repeals a section of the Oklahoma Mandatory Seat Belt Use Act relating to inadmissibility of evidence in civil actions of failure to use seatbelt and sections relating to limits on noneconomic damages in medical liability actions.
 Principal Authors:Dan Newberry (S)
 Effective Date:11/01/2009Emergency:No
 Status Date:02/18/2010Current Status:Failed Deadline

SB1022Paraphrase:allows the insurance commissioner to conduct financial and market conduct examinations. It requires insurers to annually file with the insurance commissioner market conduct annual statements reporting market data of insurers with a $200 filing fee. The bill creates the Oklahoma Annual Financial Report Act to improve surveillance of the insurance commissioner over the financial condition of insurers by requiring an audit of financial conditions of insurers; communication of internal control-related matters noted in an audit; and management's report of internal control over financial reporting. It exempts from the act insurers with less than $1 million in direct premiums in a year and less than 1,000 policy holders. The measure creates an anti-fraud unit within the legal and investigation division of the Insurance Department. It allows a domestic insurer with a policyholder surplus of at least $15 million to be designated as a domestic surplus line insurer. The bill requires discount medical plan organizations to be entities organized under state law or authorized to do business in Oklahoma and registered as a discount medical plan organization with the Insurance Department. It establishes a $50 administrative fee for failing to inform the insurance commissioner of a change of legal name or address within 30 days of the change. It increases from 14 to 21 the number of hours of continuing insurance education required of insurance producers, except title producers and aircraft title producers or others, which are required to complete 16 clock hours of continuing insurance education, including two hours of ethics work. It removes language related to the Oklahoma uninsured motorist coverage law. It removes language prohibiting an insurer from charging a renewal premium rate for a long-term care insurance policy that exceeds by more than 15 percent any premium charged for the policy during the preceding 12 months. The bill also modifies language related to the Employer Health Insurance Purchasing Group Act. It also modifies language related to bail bonds, stating that the business of bail bonds includes all aspects of acting as a bail bondsman. It designates the apprentice adjuster license as an optional license to facilitate the experience, education and training. It modifies language related to the Insurance Adjustors Licensing Act, stating that licenses issued continue for up to 24 months and increases from 12 to 24 the number of continuing insurance education hours required within the previous 24 months for license renewal, including three hours in ethics. It also creates the Medical Professional Liability Insurance Closed Claim Reports Act. It requires an insurer to file a closed claim report with the Insurance Department for claims under a medical professional liability insurance policy, requiring such reports to include certain data, and creates penalties for noncompliance. The measure also repeals language related to the Oklahoma Producer Licensing Act, the Insurance Adjusters Licensing Act and medical professional liability insurance closed claim reports. In the House, the bill was amended to include language prohibiting a waiver of an applicable privilege or claim of confidentiality in the documents or information required to be submitted to the insurance commissioner.
 Principal Authors:Bill Brown (S), Daniel Sullivan (H)
 Effective Date:11/01/2009Emergency:No
 Status Date:05/11/2009Current Status:Governor Action - Signed

Reprinted with permission
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