Legislature(1995 - 1996)

1996-10-21 House Journal

Full Journal pdf

1996-10-21                     House Journal                      Page 4784
HB 158                                                                       
The following letter, dated June 14, 1996, was received:                       
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under authority of art. II, sec. 15, of the Alaska Constitution, I have        
vetoed the following bill:                                                     
                                                                               
SENATE CS FOR CS FOR HOUSE BILL NO. 158(RLS) am S(ct                          
rls fld S)                                                                     
An Act relating to civil actions.                                             
                                                                               
I agree with many Alaskans that meaningful reform of Alaskas civil             
justice system is necessary.  The system should be more efficient yet          
just, and we should reduce frivolous litigation while preserving the           
ability of innocent victims to be compensated for injuries caused by           
others.  Alaska businesses are faced with the risk of excessive lawsuit        
awards, high liability insurance rates and the threat of settlement or         
costly litigation.  These costs ultimately are passed on to Alaska             
consumers.  I believe we can improve the system while protecting the           
rights of all Alaskans.  Unfortunately, this bill does not fairly and          
reasonably address these problems.                                             
                                                                               
During this years legislative session, some good concepts for                  
reforming our civil justice system were discussed, including reasonable        
limits on punitive damages, cutting back on frivolous lawsuits,                
insurance rate reductions and mediation to encourage early settlement          
of suits.  Few of those concepts survived in this bill in a form that          
improves the situation. Instead, the current version was hastily               
rewritten in the dead of night and subject to little public review.  When      
problems were identified by my Administration and others, they were            
ignored.                                                                       
                                                                               
As a result, this bill falls far short of the mark of meaningful and           
responsible tort reform. It is extreme, seriously flawed and fails to          
implement these positive aspects of tort reform in a reasonable way.           
                                                                               
In fact, in some cases, this bill makes problems worse by increasing           
litigation expenses, lengthening the litigation process and clouding the       

1996-10-21                     House Journal                      Page 4785
HB 158                                                                       
rights of thousands of Alaskan families.  A growing number of                  
Alaskans from all walks of life -- fishermen, Native organizations,            
local governments, conservation groups -- oppose the bill.                     
                                                                               
I am vetoing  this bill for three primary reasons:  it was the product of      
a flawed public process, it dictates poor public policy, and it contains       
serious legal defects and constitutional problems.                             
                                                                              
                                                                               
Flawed public process.  Although the bill was the subject of many             
hearings, the Legislature chose to ignore the progress made during that        
process.  Instead, the bill was largely rewritten by the Senate Rules          
Committee with little public notice or involvement.                            
                                                                               
One result of that process, which supporters of the bill claim is              
unintentional, is  dangerous and likely unconstitutional.  This bill           
would retroactively preclude certain punitive damage awards to                 
innocent victims, even after a jury has issued a verdict.  In a case           
familiar to all Alaskans, I am advised this provision could jeopardize         
the rights of 30,000 Alaskans affected by the Exxon Valdez oil spill.          
No responsible public official can or should take that risk.                   
                                                                               
Even legislative leaders recognized this flaw in the bill when, on the         
28th day of the 30-day special session, they requested another                 
opportunity to correct the bill.                                               
                                                                              
                                                                               
Poor public policy.  The bill is littered with poor public policy             
provisions which complicate, instead of streamline, the civil justice          
system which increases the amount, cost and complexity of litigation           
and which limit the rights of innocent Alaskans to reasonable and just         
compensation for injuries caused by others.                                    
                                                                               
Certainly a key provision of any tort reform effort should be reduced          
insurance rates so individuals and businesses receive some relief from         
the high cost of insurance.  Yet, there is no guarantee of reduced             
insurance rates resulting from this bill.  Despite many efforts by my          
Administration and others to provide meaningful relief in liability            
insurance rates as part of this bill, the Legislature rejected them.