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CSHB 158(JUD): "An Act relating to civil actions; amending Alaska Rules of Civil Procedure 49, 68, and 95; amending Alaska Rule of Evidence 702; and providing for an effective date."

00CS FOR HOUSE BILL NO. 158(JUD) 01 "An Act relating to civil actions; amending Alaska Rules of Civil Procedure 49, 02 68, and 95; amending Alaska Rule of Evidence 702; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds that 06 (1) civil justice in this state has generally been developed by the courts on a 07 case-by-case basis; this process has resulted in some significant changes in the law, and the 08 legislature has periodically intervened to bring about needed reforms; 09 (2) the level of malpractice insurance premiums discourage physicians, 10 architects, engineers, attorneys, and other professionals from initiating or continuing their 11 practice or offering needed services to the public; 12 (3) society as a whole cannot afford the price of lawsuits years after design and 13 construction, the delivery of services, and other actions; the widespread use of claims made 14 insurance policies makes it impossible to adequately and economically insure against actions

01 for an unlimited period of time; likewise, it is extremely difficult to defend against a claim 02 that has become stale after information and witnesses have disappeared; 03 (4) on the whole, society is better served with a statute of repose even though 04 in a few limited instances injuries may go without compensation; 05 (5) hospitals that comply with the disclosure requirements set out in this Act 06 should not be liable for the negligence of independent contractors; to this extent, this Act is 07 intended to overrule the case of Jackson v. Powers, 743 P.2d 1376 (Alaska 1987); 08 (6) tortfeasors should not be held responsible for the negligence of an 09 employer; to this extent, this Act is intended to overrule the case of Lake v. Construction 10 Machinery, Inc., 787 P.2d 1027 (Alaska 1990); 11 (7) the issues in this Act were intended to be addressed in a comprehensive 12 way in 1986; however, the legislation passed in 1986 fell short of accomplishing the goals of 13 the legislature and many of the problems that existed in 1986 still exist in 1995; 14 (8) the civil justice system for resolving medical negligence claims has not 15 adequately protected patients, health care providers, or the public; 16 (9) many medical negligence claims involve complex issues of medical fact 17 that require expert medical testimony to assist the trier of fact in reaching a decision; 18 (10) many patients have been unable to obtain compensation through the 19 current civil justice system because of the high costs of litigation; 20 (11) injured parties are being compensated by the courts with punitive damages 21 when punitive damages should be awarded to deter and punish people who act with malicious 22 or deliberate disregard for the safety of others; 23 (12) the size and unpredictability of damage awards has driven up the cost of 24 liability insurance, thereby compromising the availability and affordability of insurance 25 coverage for many health care providers, and leading in turn to decreased availability or 26 complete unavailability of health care services in some geographic areas of the state and high 27 prices for health care services generally; 28 (13) the civil justice system is an expensive and inefficient method of resolving 29 medical liability disputes, with less than one-half of the total dollars spent on malpractice 30 insurance ever reaching the injured patient; 31 (14) existing legal standards governing medical negligence have resulted in

01 unpredictability, adversarial relationships, and unfairness to both patients and health care 02 providers; 03 (15) fear of lawsuits has prompted physicians to conduct unnecessary tests that 04 have greatly increased the cost of medical care; and 05 (16) malpractice premiums continue to escalate in this state substantially faster 06 than premiums in other states where legislation to change the civil justice system has been 07 implemented. 08 (b) It is the purpose of this Act to 09 (1) enact further reforms that create a more equitable distribution of the cost 10 and risk of injury; 11 (2) reduce costs associated with the civil justice system, while ensuring that 12 adequate and appropriate compensation for persons injured through the fault of others is 13 available; 14 (3) help match losses with compensation by helping to 15  (A) ensure that money paid to an injured person is available when 16 anticipated expenses or losses occur; 17  (B) ensure that a claimant with substantial injury requiring long-term 18 treatment will have money available for future medical care; 19  (C) reduce reparation system costs by eliminating those portions of 20 awards that are not needed to compensate the claimant; 21  (D) eliminate duplicate recoveries; 22  (E) reduce the costs of litigation; 23  (F) establish appropriate thresholds for a damage award in order to 24 allow predictability of liability exposure; and 25  (G) reduce the ultimate costs to the state and to local governments of 26 providing medical services to those who cannot otherwise afford those services; 27 (4) ensure that in actions involving the fault of more than one person, the fault 28 of each claimant, defendant, third-party defendant, person who has been released from 29 liability, or other person responsible for the damages be determined and awards be allocated 30 in accordance with their fault; 31 (5) reduce the amount of litigation proceeding to trial by modifying the

01 allocation of attorney fees and court costs based on the offer of judgment and the final court 02 award thereby providing a financial incentive to both parties to settle the dispute; 03 (6) enact a statute of repose that meets the tests set out in Turner Construction 04 Co., Inc. v. Scales, 752 P.2d 467 (Alaska 1988); 05 (7) clarify the circumstances in which hospitals are held directly liable for the 06 actions of health care providers not employed by the hospital; 07 (8) encourage health care providers to provide quality medical care in all areas 08 of this state at a cost that is affordable; 09 (9) stabilize the rapidly escalating costs of health care by curtailing the rapid 10 escalation in malpractice premiums and thereby make broader based health care available to 11 more residents of the state; 12 (10) require that one-half of punitive damages awarded by a court be deposited 13 into the general fund for the benefit of the public welfare and to deter future harm to the 14 public. 15 * Sec. 2. AS 09.10.055 is repealed and reenacted to read: 16  Sec. 09.10.055. STATUTE OF REPOSE OF EIGHT YEARS. (a) 17 Notwithstanding the disability of minority described under AS 09.10.140(a), a person 18 may not bring an action for personal injury, death, or property damage unless 19 commenced within eight years of the earlier of the date of 20  (1) substantial completion of the construction alleged to have caused 21 the personal injury, death, or property damage; however, the limitation of this 22 paragraph does not apply to a claim resulting from an intentional or reckless disregard 23 of specific project design plans and specifications or building codes; or 24  (2) the last act alleged to have caused the personal injury, death, or 25 property damage. 26  (b) This section does not apply if 27  (1) the personal injury, death, or property damage resulted from 28  (A) prolonged exposure to hazardous waste; 29  (B) an intentional act or gross negligence; 30  (C) fraud or fraudulent misrepresentation; 31  (D) breach of an express warranty or guarantee; or

01  (E) a defective product; in this subparagraph, "product" means 02 an object that has intrinsic value, is capable of delivery as an assembled whole 03 or as a component part, and is introduced into trade or commerce; 04  (2) facts that would give notice of a potential cause of action are 05 intentionally concealed; or 06  (3) a shorter period of time for bringing the action is imposed under 07 another provision of law. 08  (c) The limitation imposed under (a) of this section is tolled during any period 09 in which there exists the undiscovered presence of a foreign body, that has no 10 therapeutic or diagnostic purpose or effect, in the body of the injured person and the 11 action is based on the presence of the foreign body. 12  (d) In this section, "substantial completion" means the date when construction 13 is sufficiently completed to allow the owner or a person authorized by the owner to 14 occupy the improvement or to use the improvement in the manner for which it was 15 intended. 16 * Sec. 3. AS 09.10 is amended by adding a new section to read: 17  Sec. 09.10.065. LIMITATION ON ACTIONS AGAINST HEALTH CARE 18 PROVIDERS. (a) Notwithstanding the disability of minority described under 19 AS 09.10.140(a), an action based on professional negligence may not be brought 20 against a health care provider if the injured person is, on the date of the alleged 21 negligent act or omission, less than six years of age, unless the action is commenced 22 before the person's eighth birthday. 23  (b) The limitation imposed under (a) of this section is tolled during any period 24 in which there exists 25  (1) fraud, including fraud or collusion by a parent, guardian, insurer, 26 or health care provider, resulting in the failure to bring an action on behalf of an 27 injured minor; 28  (2) intentional concealment of facts that would give notice of a 29 potential action; or 30  (3) the undiscovered presence of a foreign body, that has no therapeutic 31 or diagnostic purpose or effect, in the body of the injured person and the action is

01 based on the presence of the foreign body. 02  (c) In this section, 03  (1) "health care provider" has the meaning given in AS 09.55.560; 04  (2) "professional negligence" means a negligent act or omission by a 05 health care provider in rendering professional services; 06  (3) "professional services" means services provided by a health care 07 provider that are within the scope of services for which the health care provider is 08 licensed, and that are not prohibited under the health care provider's license or by a 09 hospital in which the health care provider practices. 10 * Sec. 4. AS 09.10.070 is amended to read: 11  Sec. 09.10.070. ACTIONS FOR CERTAIN TORTS AND CERTAIN 12 STATUTORY LIABILITIES TO BE BROUGHT IN TWO YEARS. Except as 13 otherwise provided by law, a [A] person may not bring an action (1) for libel, 14 slander, assault, battery, seduction, or false imprisonment [, OR FOR ANY INJURY 15 TO THE PERSON OR RIGHTS OF ANOTHER NOT ARISING ON CONTRACT 16 AND NOT SPECIFICALLY PROVIDED OTHERWISE]; (2) upon a statute for a 17 forfeiture or penalty to the state; or (3) upon a liability created by statute, other than 18 a penalty or forfeiture; unless the action is commenced within two years. 19 * Sec. 5. AS 09.10 is amended by adding a new section to read: 20  Sec. 09.10.075. LIMITATION ON ACTIONS INVOLVING INJURY TO 21 PERSON OR PROPERTY. (a) Notwithstanding the disability of minority described 22 under AS 09.10.140(a), a person may not bring an action for personal injury, death, 23 property damage, or injury to the rights of another not arising on contract, unless the 24 action is brought within two years of the accrual of the action. 25  (b) This section does not apply if a shorter period of time for bringing the 26 action is imposed under another provision of law. 27 * Sec. 6. AS 09.17.010 is repealed and reenacted to read: 28  Sec. 09.17.010. NONECONOMIC DAMAGES. (a) In an action to recover 29 damages for personal injury or wrongful death, all damage claims for noneconomic 30 losses shall be limited to compensation for pain, suffering, inconvenience, physical 31 impairment, disfigurement, loss of enjoyment of life, loss of consortium, and other

01 nonpecuniary damage. 02  (b) Except as provided under (c) of this section, the amount of damages 03 awarded by a court or a jury under (a) of this section for all claims, including a loss 04 of consortium claim, arising out of a single injury or death may not exceed $300,000. 05  (c) In an action for personal injury, the damages awarded by a court or jury 06 that are described under (b) of this section may not exceed $500,000 when the 07 claimant, as a result of the injury, 08  (A) is a hemiplegic, paraplegic, or quadriplegic and has 09 permanent functional loss of one or more limbs resulting from injury to the 10 spine or spinal cord; or 11  (B) has permanently impaired cognitive capacity, is incapable 12 of making independent, responsible decisions, and is permanently incapable of 13 independently performing the activities of normal, daily living. 14  (d) The limit under (b) or (c) of this section does not apply to noneconomic 15 damages awarded by a court or jury against a person who, as proven by a 16 preponderance of the evidence, was attempting to commit or committing a felony, if 17 the person bringing the action was a victim of that offense and the offense 18 substantially contributed to the injury or death. In this subsection, "victim" has the 19 meaning given in AS 12.55.185. 20  (e) Multiple injuries sustained as a result of a single incident shall be treated 21 as a single injury for purposes of this section. 22 * Sec. 7. AS 09.17.020 is amended to read: 23  Sec. 09.17.020. PUNITIVE DAMAGES. Punitive damages may not be 24 awarded in an action, whether in tort, contract, or otherwise, unless supported by clear 25 and convincing evidence of malice or conscious acts showing deliberate disregard 26 of another person by the person from whom the punitive damages are sought. 27 * Sec. 8. AS 09.17.020 is amended by adding new subsections to read: 28  (b) The amount of punitive damages awarded by a court or jury under (a) of 29 this section may not exceed three times the amount of compensatory damages awarded 30 or $300,000, whichever amount is greater. 31  (c) The limit under (b) of this section does not apply to punitive damages

01 awarded by a court or jury against a person who, as proven by a preponderance of the 02 evidence, was attempting to commit or committing a felony if the person bringing the 03 action was a victim of that offense and the offense substantially contributed to the 04 injury or death. In this subsection, "victim" has the meaning given in AS 12.55.185. 05  (d) If a person receives an award of punitive damages, the court shall require 06 that one-half of the award be deposited into the general fund of the state. This 07 subsection does not grant the state the right to file or join a civil action to recover 08 punitive damages. 09 * Sec. 9. AS 09.17.040(a) is amended to read: 10  (a) In every case where damages for personal injury or death are awarded by 11 the court or jury [,] 12  (1) the verdict shall be itemized between economic loss and 13 noneconomic loss, if any, as follows: 14  (A) [(1)] past economic loss; 15  (B) [(2)] past noneconomic loss; 16  (C) [(3)] future economic loss; 17  (D) [(4)] future noneconomic loss; [AND] 18  (E) [(5)] punitive damages; and 19  (2) the amount of economic damages awarded for past or future 20 gross earnings shall be reduced by the amount of federal and state income tax 21 that would be paid on the earnings under tax rates in effect on the date of the 22 injury or death; this paragraph does not apply to economic damages that are 23 subject to federal or state income taxes. 24 * Sec. 10. AS 09.17.040(d) is amended to read: 25  (d) In an action to recover damages, the court shall, at the request of a [AN 26 INJURED] party, enter judgment ordering that amounts awarded a judgment creditor 27 for future damages that exceed $100,000 be paid to the maximum extent feasible by 28 periodic payments rather than by a lump-sum payment. If a portion of the judgment 29 awarded is owed to an attorney under a contingent fee agreement, that portion 30 of the judgment shall be reduced to present value and paid in a lump sum, and 31 the remaining portion of the judgment shall be paid as provided under this

01 subsection. 02 * Sec. 11. AS 09.17.040(e) is amended to read: 03  (e) Except as provided in this subsection, if a judgment is paid by periodic 04 payments, the [THE] court shall [MAY] require security be posted [,] in order to 05 ensure that funds are available as periodic payments become due. The court may not 06 require security to be posted if the state, a self-insured municipality, or an 07 authorized insurer, as defined in AS 21.90.900, acknowledges to the court its 08 obligation to discharge the judgment. 09 * Sec. 12. AS 09.17.040(f) is amended to read: 10  (f) A judgment ordering payment of future damages for personal injury or 11 death by periodic payment shall specify the recipient, the dollar amount of the 12 payments, including any increases in future payments for anticipated inflation, the 13 interval between payments, and the number of payments or the period of time over 14 which payments shall be made. Payments may be modified only in the event of the 15 death of the judgment creditor, in which case payments may not be reduced or 16 terminated, but shall be paid to persons to whom the judgment creditor owed a duty 17 of support, as provided by law, immediately before death. In the event the judgment 18 creditor owed no duty of support to dependents at the time of the judgment creditor's 19 death, the money remaining shall be distributed in accordance with a will of the 20 deceased judgment creditor accepted into probate or under the intestate laws of the 21 state if the deceased had no will. In this subsection, "inflation" means the change 22 in the Consumer Price Index for Anchorage, all items index, compiled by the 23 Bureau of Labor Statistics, United States Department of Labor. 24 * Sec. 13. AS 09.17.070 is repealed and reenacted to read: 25  Sec. 09.17.070. COLLATERAL BENEFITS. (a) A claimant in an action for 26 personal injury or death may only recover damages that exceed amounts received by 27 the claimant, or that with reasonable probability will be received in the future by the 28 claimant, as compensation for the injuries from collateral sources, whether private, 29 group, or governmental, and whether contributory or noncontributory, except when 30  (1) the collateral source is a federally funded program that by law must 31 seek subrogation;

01  (2) the collateral source has a right of subrogation under federal law; 02 or 03  (3) the benefit consists of death benefits paid under life insurance. 04  (b) A person defending a claim may introduce into evidence an amount paid 05 or payable as a benefit to the claimant as a result of the personal injury or death under 06 42 U.S.C. 301 - 1397 (Social Security Act); a state or federal disability or workers' 07 compensation act; health, sickness, disability, accident, or income-disability insurance; 08 insurance that provides health benefits or income-disability coverage; and a contract 09 or agreement of a group, organization, partnership, or corporation, or other collateral 10 source, to provide, pay for, or reimburse the cost of medical, hospital, dental, or other 11 health care services, disability, or lost wages. However, evidence of a collateral source 12 that is a federally funded program that by law must seek subrogation or that has a right 13 of subrogation under federal law, or evidence of death benefits paid under life 14 insurance, may not be introduced under this subsection. If a person defending a claim 15 elects to introduce evidence described in this subsection, the claimant may introduce 16 evidence of the amount that the claimant has paid or contributed to secure the 17 claimant's right to the collateral benefit, including the cost to the claimant resulting 18 from depleted or exhausted coverage. 19  (c) Notwithstanding AS 23.30, a person who provides a collateral benefit 20 admissible under (b) of this section may not recover any amount against the claimant 21 as reimbursement for those benefits and may not be subrogated to the rights of a 22 claimant against a person defending a claim. 23 * Sec. 14. AS 09.17.080(a) is amended to read: 24  (a) In all actions involving fault of more than one person [PARTY TO THE 25 ACTION], including third-party defendants and persons who have been released under 26 AS 09.17.091 [AS 09.16.040], the court, unless otherwise agreed by all parties, shall 27 instruct the jury to answer special interrogatories or, if there is no jury, shall make 28 findings, indicating 29  (1) the amount of damages each claimant would be entitled to recover 30 if contributory fault is disregarded; and 31  (2) the percentage of the total fault [OF ALL OF THE PARTIES TO

01 EACH CLAIM] that is allocated to each claimant, defendant, third-party defendant, 02 [AND] person who has been released from liability under AS 09.17.091, or other 03 person responsible for the damages to each claimant regardless of whether the 04 other person, including an employer, is or could have been named as a party to 05 the action [AS 09.16.040]. 06 * Sec. 15. AS 09.17.080(c) is amended to read: 07  (c) The court shall determine the award of damages to each claimant in 08 accordance with the findings, subject to a reduction under AS 09.17.091 09 [AS 09.16.040], and enter judgment against each party liable. The court also shall 10 determine and state in the judgment each party's equitable share of the obligation to 11 each claimant in accordance with the respective percentages of fault as determined 12 under (a) of this section. An assessment of a percentage of fault against a person 13 who is not a party may only be used as a measure for accurately determining the 14 percentages of fault of a named party. Assessment of a percentage of fault 15 against a person who is not a party does not subject that person to civil liability 16 in that action and may not be used as evidence of civil liability in another action. 17 * Sec. 16. AS 09.17 is amended by adding a new section to read: 18  Sec. 09.17.091. EFFECT OF RELEASE. When a release or covenant not to 19 sue or not to enforce judgment is given in good faith to one of two or more persons 20 civilly liable for the same injury or the same wrongful death 21  (1) it does not discharge any of the other persons from liability for the 22 injury or wrongful death unless its terms so provide; but it reduces the total amount 23 awarded by the jury or court to the extent of any amount stipulated by the release or 24 the covenant, or in the amount of the consideration paid for it, whichever is the 25 greater; and 26  (2) it discharges the person to whom it is given from all liability for 27 contribution to any other person. 28 * Sec. 17. AS 09.30.065 is amended to read: 29  Sec. 09.30.065. OFFERS OF JUDGMENT. At any time more than 10 days 30 before the trial begins either the party making a claim or the party defending against 31 a claim may serve upon the adverse party an offer to allow judgment to be entered in

01 complete satisfaction of the claim for the money or property or to the effect specified 02 in the offer, with costs then accrued. If within 10 days after the service of the offer 03 the adverse party serves written notice that the offer is accepted, either party may then 04 file the offer and notice of acceptance together with proof of service, and the clerk 05 shall enter judgment. An offer not accepted within 10 days is considered withdrawn 06 and evidence of that offer is not admissible except in a proceeding to determine the 07 form of judgment after verdict. If the judgment finally entered on the claim as to 08 which an offer has been made under this section is not more favorable to the offeree 09 than the offer, the offeree shall pay costs as allowed under the Alaska Rules of 10 Civil Procedure and all reasonable attorney fees incurred by the offeror from the 11 date the offer was made [THE INTEREST AWARDED UNDER AS 09.30.070 AND 12 ACCRUED UP TO THE DATE JUDGMENT IS ENTERED SHALL BE ADJUSTED 13 AS FOLLOWS: 14  (1) IF THE OFFEREE IS THE PARTY MAKING THE CLAIM, THE 15 INTEREST RATE SHALL BE REDUCED BY FIVE PERCENT A YEAR; 16  (2) IF THE OFFEREE IS THE PARTY DEFENDING AGAINST THE 17 CLAIM, THE INTEREST RATE SHALL BE INCREASED BY FIVE PERCENT A 18 YEAR]. 19 * Sec. 18. AS 09.30.070(a) is amended to read: 20  (a) Notwithstanding AS 45.45.010, the [THE] rate of interest on judgments 21 and decrees for the payment of money, including prejudgment interest, is three 22 percent above the 12th Federal Reserve District discount rate in effect on 23 January 2 of the year in which the judgment or decree is entered [10.5 PERCENT 24 A YEAR], except that a judgment or decree founded on a contract in writing, 25 providing for the payment of interest until paid at a specified rate not exceeding the 26 legal rate of interest for that type of contract, bears interest at the rate specified in the 27 contract if the interest rate is set out in the judgment or decree. 28 * Sec. 19. AS 09.30.070 is amended by adding a new subsection to read: 29  (c) Prejudgment interest may not be awarded for future economic damages, 30 future noneconomic damages, or for punitive damages. 31 * Sec. 20. AS 09.55.535(k) is amended to read:

01  (k) The provisions of the Uniform Arbitration Act, AS 09.43.010 - 09.43.180, 02 apply to arbitrations under this section if they do not conflict with the provisions of 03 this section; arbitrations under this section shall be conducted in accordance with 04 procedures established by any rules of court which may be adopted and according to 05 provisions of AS 09.55.540 - 09.55.547 [AS 09.55.540 - 09.55.548] and AS 09.55.554 06 - 09.55.560, and AS 09.65.090. 07 * Sec. 21. AS 09.55 is amended by adding new sections to read: 08  Sec. 09.55.551. MEDICAL EXPERT WITNESS QUALIFICATION. In an 09 action based upon professional negligence brought against a health care provider, a 10 person may not testify as an expert witness on the issue of the appropriate medical 11 standard of care unless the witness is a health care provider or is licensed as a health 12 care provider in another state or country and 13  (1) is trained and experienced in the same discipline or school of 14 practice as the defendant or in an area directly related to a matter at issue; 15  (2) is certified by a board recognized by the State Medical Board as 16 having acknowledged expertise and training directly related to the particular health care 17 or matter at issue; and 18  (3) within one year of the date of the alleged occurrence giving rise to 19 the claim, was in active practice as a health care provider or devoted a substantial 20 portion of time teaching at an accredited school in the same discipline or school of 21 practice as the defendant or in an area directly related to a matter at issue. 22  Sec. 09.55.552. MEDICAL BOARD OVERSIGHT OF MEDICAL EXPERT 23 WITNESSES. A physician who testifies as an expert witness in this state in an action 24 based on professional negligence brought against another physician is authorized to 25 practice medicine in this state for the purpose of providing testimony as an expert 26 witness and is subject to the authority of the State Medical Board and the provisions 27 of AS 08.64. 28  Sec. 09.55.553. MEDICAL EXPERT WITNESSES. (a) In an action based 29 upon professional negligence brought against a health care provider, the court may 30 allow cross-examination of a medical expert witness as to the 31  (1) amount of compensation that the witness is receiving for the

01 witness's consultation and testimony; 02  (2) proportion of the witness's professional time devoted to expert 03 witness activities; and 04  (3) frequency with which the witness testifies for either plaintiffs or 05 defendants. 06  (b) Expert medical testimony may not be admitted in court if the testimony 07  (1) has been obtained under an agreement with a third party who 08 receives a contingency fee for 09  (A) providing a medical expert for review of medical injury 10 claims; 11  (B) locating medical expert witnesses; or 12  (C) arranging the provision of medical expert testimony; or 13  (2) is provided by a medical expert witness who has agreed to provide 14 medical testimony on a contingency fee basis. 15 * Sec. 22. AS 09.55.560 is amended by adding new paragraphs to read: 16  (4) "professional negligence" means a negligent act or omission by a 17 health care provider in rendering professional services; 18  (5) "professional services" means services provided by a health care 19 provider that are within the scope of services for which the health care provider is 20 licensed and that are not prohibited under the health care provider's license or by a 21 hospital in which the health care provider practices. 22 * Sec. 23. AS 09.60 is amended by adding a new section to read: 23  Sec. 09.60.080. CONTINGENT ATTORNEY FEE AGREEMENTS. If an 24 attorney contracts for or collects a contingency fee in connection with an action for 25 personal injury, death, or property damage and the damages awarded by a court or jury 26 include an award of punitive damages, the contingent fee due the attorney shall be 27 calculated after that portion of punitive damages due the state under AS 09.17.020(d) 28 has been deducted from the total award of damages. 29 * Sec. 24. AS 09.65 is amended by adding a new section to read: 30  Sec. 09.65.096. CIVIL LIABILITY OF HOSPITALS FOR NONEMPLOYEES. 31 (a) A hospital is not liable for civil damages as a result of an act or omission by a

01 health care provider who is not an employee or actual agent of the hospital if the 02 hospital provides notice that the health care provider is an independent contractor. The 03 notice required by this subsection must be posted conspicuously in all admitting areas 04 of the hospital, published at least annually in a newspaper of general circulation in the 05 area, and must be in substantially the following form: 06 Notice of Limited Liability 07 The following health care providers are independent contractors 08 and are not employees of the hospital: 09 (List specific health care providers) 10 The hospital is responsible for exercising reasonable care in granting staff privileges 11 to practice in the hospital, for reviewing those privileges on a regular basis, and for 12 taking appropriate steps to revoke or restrict privileges in appropriate circumstances. 13 The hospital is not otherwise liable for the acts or omissions of a health care provider 14 who is an independent contractor. 15  (b) This section does not preclude liability for civil damages that are the 16 proximate result of the hospital's own negligence or intentional misconduct. 17  (c) In this section, 18  (1) "health care provider" means a doctor of medicine, psychologist, 19 osteopath, dentist, optometrist, chiropractor, optician, pharmacist, podiatrist, or certified 20 registered nurse anesthetist, who is licensed in this state; 21  (2) "hospital" has the meaning given in AS 18.20.130 and includes a 22 governmentally owned or operated hospital; 23  (3) "independent contractor" means a licensed health care provider who 24 is a member of a hospital's medical staff or who has otherwise been granted specified 25 privileges to render health care services directly or indirectly to patients at the hospital, 26 but who is not an employee or actual agent of the hospital in connection with the 27 rendition of the health care services. 28 * Sec. 25. AS 09.65.210 is amended to read: 29  Sec. 09.65.210. DAMAGES RESULTING FROM COMMISSION OF A 30 CRIME. A person who suffers personal injury or death may not recover damages for 31 the personal injury or death if the injuries or death occurred while the person was

01 committing or attempting to commit a felony, or fleeing from [ENGAGED IN] the 02 commission of a felony, [THE PERSON HAS BEEN CONVICTED OF THE 03 FELONY, INCLUDING CONVICTION BASED ON A GUILTY PLEA OR PLEA 04 OF NOLO CONTENDERE,] and the action [FELONY] substantially contributed to 05 the injury or death. [THIS SECTION DOES NOT AFFECT A RIGHT OF ACTION 06 UNDER 42 U.S.C. 1983.] 07 * Sec. 26. AS 09.68 is amended by adding a new section to read: 08  Sec. 09.68.125. SIGNING OF PLEADINGS, MOTIONS, AND OTHER 09 PAPERS; SANCTIONS. Every pleading, motion, and other paper of a party 10 represented by an attorney shall be signed by at least one attorney of record in the 11 attorney's individual name, whose address shall be stated. A party who is not 12 represented by an attorney shall sign the party's pleading, motion, or other paper and 13 state the party's address. Except when otherwise specifically provided by the Alaska 14 Rules of Civil Procedure or statute, pleadings need not be verified or accompanied by 15 affidavit. The signature of an attorney or party constitutes a certificate by the signer 16 that the signer has read the pleading, motion, or other paper; that to the best of the 17 signer's knowledge, information, and belief formed after reasonable inquiry it is well 18 grounded in fact and is warranted by existing law or a good faith argument of the 19 extension, modification, or reversal of existing law; and that it is not interposed for any 20 improper purpose, including to harass or to cause unnecessary delay or needless 21 increase in the cost of litigation. If a pleading, motion, or other paper is not signed, 22 it shall be stricken unless it is signed promptly after the omission is called to the 23 attention of the pleader or movant. If it is alleged or appears that a pleading, motion, 24 or other paper is signed in violation of this section, the court, upon motion or upon its 25 own initiative, may set the matter for hearing. If the court determines that a pleading, 26 motion, or other paper is signed in violation of this section, the court shall impose 27 upon the person who signed it, a represented party, or both, an appropriate sanction 28 that may include an order to pay to the other party the amount of the reasonable 29 expenses incurred because of the filing of the pleading, motion, or other paper, 30 including costs and attorney fees, and monetary sanctions not to exceed $10,000. 31 * Sec. 27. AS 09.55.548 is repealed.

01 * Sec. 28. AS 09.17.080(a), as amended by sec. 14 of this Act, has the effect of amending 02 Alaska Rule of Civil Procedure 49 by requiring the jury to answer the special interrogatory 03 listed in AS 09.17.080(a)(2), regarding the percentages of fault to be allocated among the 04 parties. 05 * Sec. 29. AS 09.30.065, as amended by sec. 17 of this Act, has the effect of amending 06 Alaska Rule of Civil Procedure 68 by providing that if a judgment is not more favorable to 07 the offeree than the offer, the offeree shall pay costs as allowed under the Alaska Rules of 08 Civil Procedure and reasonable attorney fees incurred by the offeror, and by deleting interest 09 adjustments. 10 * Sec. 30. AS 09.30.070(c), added by sec. 19 of this Act, has the effect of amending 11 Alaska Rule of Civil Procedure 68 by providing that prejudgment interest may not be awarded 12 for future economic or noneconomic damages. 13 * Sec. 31. AS 09.55.551, enacted by sec. 21 of this Act, has the effect of amending Alaska 14 Rule of Evidence 702 by requiring certain qualifications from a person testifying as an expert 15 medical witness. 16 * Sec. 32. AS 09.55.553(b), enacted by sec. 21 of this Act, has the effect of amending 17 Alaska Rule of Evidence 702 by prohibiting certain testimony by a medical expert. 18 * Sec. 33. AS 09.68.125, as enacted in sec. 26 of this Act, has the effect of amending 19 Alaska Rule of Civil Procedure 95, by requiring imposition of sanctions for certain failures 20 to sign pleadings, motions, or other papers. 21 * Sec. 34. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the 22 application of a provision of this Act to any person or circumstance is held invalid, the 23 remainder of this Act and the application to other persons shall not be affected. 24 * Sec. 35. APPLICABILITY. This Act applies to all causes of action accruing on or after 25 the effective date of this Act. 26 * Sec. 36. This Act takes effect July 1, 1995.