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SCS CSHB 158(RLS) AM S(CT RLS FLD S): "An Act relating to civil actions."

00SENATE CS FOR CS FOR HOUSE BILL NO. 158(RLS) am S(ct rls fld S) 01 "An Act relating to civil actions." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. PURPOSE. It is the purpose of this Act to 04 (1) enact further reforms that create a more equitable distribution of the cost 05 and risk of injury; 06 (2) reduce costs associated with the civil justice system, while ensuring that 07 adequate and appropriate compensation for persons injured through the fault of others is 08 available; 09 (3) help match losses with compensation by helping to 10  (A) ensure that money paid to an injured person is available when 11 anticipated expenses or losses occur; 12  (B) ensure that a claimant with substantial injury requiring long-term 13 treatment will have money available for future medical care; 14  (C) reduce reparation system costs by eliminating those portions of

01 awards that are not needed to compensate the claimant; 02  (D) eliminate duplicate recoveries; 03  (E) reduce the costs of litigation; 04  (F) establish appropriate thresholds for a damage award in order to 05 allow predictability of liability exposure; and 06  (G) reduce the ultimate costs to the state and to local governments of 07 providing medical services to those who cannot otherwise afford those services; 08 (4) reduce the amount of litigation proceeding to trial by modifying the 09 allocation of attorney fees and court costs based on the offer of judgment and the final court 10 award thereby providing a financial incentive to both parties to settle the dispute; 11 (5) enact a statute of repose that meets the tests set out in Turner Construction 12 Co., Inc. v. Scales, 752 P.2d 467 (Alaska 1988); 13 (6) clarify the circumstances in which hospitals are held directly liable for the 14 actions of emergency room physicians who are not employees of the hospital; 15 (7) encourage health care providers to provide quality medical care in all areas 16 of this state at a cost that is affordable; 17 (8) stabilize the rapidly escalating costs of health care by curtailing the rapid 18 escalation in malpractice premiums and thereby make broader based health care available to 19 more residents of the state; 20 (9) require that 75 percent of punitive damages awarded by a court be 21 deposited into the general fund for the benefit of the public welfare and to deter future harm 22 to the public. 23 * Sec. 2. AS 05 is amended by adding a new chapter to read: 24 CHAPTER 50. CIVIL LIABILITY FOR COMMERCIAL 25 RECREATIONAL ACTIVITIES. 26  Sec. 05.50.010. ACCEPTANCE OF INHERENT RISKS. Participation in 27 a commercial recreational activity constitutes acceptance of the inherent risks of the 28 commercial recreational activity that are or should be apparent to an ordinarily prudent 29 person. 30  Sec. 05.50.020. REDUCTION FOR NEGLIGENCE. A person who accepts 31 an inherent risk of a commercial recreational activity as described in AS 05.50.010 is

01 negligent to the extent that the inherent risk causes injury, death, or property damage. 02 In an action seeking to recover damages for injury or death to a person or harm to 03 property resulting from an inherent risk of a commercial recreational activity, 04 compensatory damages shall be reduced by the injured person's negligence as provided 05 under AS 09.17.060. 06  Sec. 05.50.030. RESPONSIBILITIES OF PARTICIPANTS. A participant in 07 a commercial recreational activity has the responsibility to 08  (1) learn about and expressly accept the risks of the activities; 09  (2) act within the limits of the person's abilities; 10  (3) heed all warnings regarding participation in the commercial 11 recreational activity; 12  (4) maintain control of the participant's person, the participant's 13 children, and any equipment, devices, or animals the participant is using; 14  (5) refrain from acting in a manner that may cause or contribute to 15 injury of the participant or another person. 16  Sec. 05.50.040. RESPONSIBILITIES OF OPERATORS OF COMMERCIAL 17 RECREATIONAL ACTIVITIES. A person who operates a business that offers a 18 commercial recreational activity shall 19  (1) explain to a participant the 20  (A) fundamental inherent risks of the commercial recreational 21 activity; and 22  (B) skills or equipment required to participate in the commercial 23 recreational activity that are not apparent to an inexperienced participant; 24  (2) require that employees who are responsible for assisting participants 25 in the actual performance of a commercial recreational activity have training in basic 26 first aid and cardiopulmonary resuscitation and explain to those employees how to use 27 emergency medical services available in the area; 28  (3) maintain recreational equipment and facilities in good repair; 29  (4) provide trained and competent personnel; and 30  (5) act in a reasonably safe and competent manner. 31  Sec. 05.50.050. INTERACTION WITH OTHER LAWS. This chapter does

01 not affect the immunity of an owner of unimproved land under AS 09.65.200 or of a 02 ski area operator under AS 05.45. 03  Sec. 05.50.100. DEFINITIONS. In this chapter, 04  (1) "children" means persons under 18 years of age; 05  (2) "commercial recreational activity" means a recreational activity for 06 which the participants pay compensation; 07  (3) "recreational activity" means an outdoor activity undertaken for the 08 purpose of exercise, education, relaxation, pleasure, sport, or as a hobby. 09 * Sec. 3. AS 09.10.055 is repealed and reenacted to read: 10  Sec. 09.10.055. STATUTE OF REPOSE OF 10 YEARS. (a) A person may 11 not bring an action for personal injury, death, or property damage unless commenced 12 within 10 years of the earlier of the date of 13  (1) substantial completion of the construction alleged to have caused 14 the personal injury, death, or property damage; however, the limitation of this 15 paragraph does not apply to a claim resulting from an intentional or reckless disregard 16 of specific project design plans and specifications or building codes; or 17  (2) the last act alleged to have caused the personal injury, death, or 18 property damage. 19  (b) This section does not apply if 20  (1) the personal injury, death, or property damage resulted from 21  (A) exposure to a hazardous substance; in this subparagraph, 22 "hazardous substance" means an element or compound that, when it enters into 23 the air or on the surface or subsurface land or water of the state, presents an 24 imminent and substantial danger to public or individual health and welfare; 25  (B) an intentional act or gross negligence; 26  (C) fraud or fraudulent misrepresentation; 27  (D) breach of an express warranty or guarantee; or 28  (E) a defective product; in this subparagraph, "product" means 29 an object that has intrinsic value, is capable of delivery as an assembled whole 30 or as a component part, and is introduced into trade or commerce; "product" 31 includes an element or compound that if ingested by humans or if humans are

01 exposed to, or are in contact with the element compound or product, poses a 02 threat to human health; 03  (2) facts that would give notice of a potential cause of action are 04 intentionally concealed; or 05  (3) a shorter period of time for bringing the action is imposed under 06 another provision of law. 07  (4) a longer period of time for bringing the action was provided under 08 a contract. 09  (c) The limitation imposed under (a) of this section is tolled 10  (1) as provided under AS 09.10.140(a)(1); and 11  (2) during any period in which there exists the undiscovered presence 12 of a foreign body, that has no therapeutic or diagnostic purpose or effect, in the body 13 of the injured person and the action is based on the presence of the foreign body. 14  (d) In this section, "substantial completion" means the date when construction 15 is sufficiently completed to allow the owner or a person authorized by the owner to 16 occupy the improvement or to use the improvement in the manner for which it was 17 intended. 18 * Sec. 4. AS 09.10.070 is amended to read: 19  Sec. 09.10.070. ACTIONS FOR CERTAIN TORTS AND CERTAIN 20 STATUTORY LIABILITIES TO BE BROUGHT IN TWO YEARS. Except as 21 otherwise provided by law, a [A] person may not bring an action (1) for libel, 22 slander, assault, battery, seduction, or false imprisonment [, OR FOR ANY INJURY 23 TO THE PERSON OR RIGHTS OF ANOTHER NOT ARISING ON CONTRACT 24 AND NOT SPECIFICALLY PROVIDED OTHERWISE]; (2) upon a statute for a 25 forfeiture or penalty to the state; or (3) upon a liability created by statute, other than 26 a penalty or forfeiture; unless the action is commenced within two years from the 27 accrual of the action. 28 * Sec. 5. AS 09.10 is amended by adding a new section to read: 29  Sec. 09.10.075. LIMITATION ON ACTIONS INVOLVING INJURY TO 30 PERSON OR PROPERTY. (a) A person may not bring an action for personal injury, 31 death, property damage, or injury to the rights of another not arising on contract,

01 unless the action is brought within two years of the accrual of the action. 02  (b) This section does not apply if a shorter period of time for bringing the 03 action is imposed under another provision of law. 04 * Sec. 6. AS 09.17.020 is amended to read: 05  Sec. 09.17.020. PUNITIVE DAMAGES. Punitive damages may not be 06 awarded in an action, whether in tort, contract, or otherwise, unless supported by clear 07 and convincing evidence of outrageous conduct, including acts done with malice or 08 bad motives, or reckless indifference to the interest of another person. 09 * Sec. 7. AS 09.17.020 is amended by adding new subsections to read: 10  (b) The amount of punitive damages awarded by a court or jury under (a) of 11 this section may not exceed three times the amount of compensatory damages awarded 12 or $300,000, whichever amount is greater. 13  (c) The limit under (b) of this section does not apply to punitive damages 14 awarded by a court or jury against a person who, as proven by a preponderance of the 15 evidence, was attempting to commit or committing a felony if the person bringing the 16 action was a victim of that offense and the offense substantially contributed to the 17 injury or death. In this subsection, "victim" has the meaning given in AS 12.55.185. 18  (d) If a person receives an award of punitive damages, the court shall require 19 that 75 percent of the award be deposited into the general fund of the state. This 20 subsection does not grant the state the right to file or join a civil action to recover 21 punitive damages. 22 * Sec. 8. AS 09.17.040(e) is amended to read: 23  (e) If a judgment is paid by periodic payments, the [THE] court shall 24 [MAY] require security be posted [,] in order to ensure that funds are available as 25 periodic payments become due. The court may waive this requirement if the person 26 in whose favor judgment is entered agrees to waive the posting of security or the 27 court determines that waiver is prudent in the action [NOT REQUIRE SECURITY 28 TO BE POSTED IF AN AUTHORIZED INSURER, AS DEFINED IN AS 21.90.900, 29 ACKNOWLEDGES TO THE COURT ITS OBLIGATION TO DISCHARGE THE 30 JUDGMENT]. 31 * Sec. 9. AS 09.17.040(f) is amended to read:

01  (f) A judgment ordering payment of future damages for personal injury or 02 death by periodic payment shall specify the recipient, the dollar amount of the 03 payments, including any increases in future payments for anticipated inflation or 04 the formula for the increases, the interval between payments, and the number of 05 payments or the period of time over which payments shall be made. Payments may 06 be modified only in the event of the death of the judgment creditor, in which case 07 payments may not be reduced or terminated, but shall be paid to persons to whom the 08 judgment creditor owed a duty of support, as provided by law, immediately before 09 death. In the event the judgment creditor owed no duty of support to dependents at 10 the time of the judgment creditor's death, the money remaining shall be distributed in 11 accordance with a will of the deceased judgment creditor accepted into probate or 12 under the intestate laws of the state if the deceased had no will. 13 * Sec. 10. AS 09.17.080(a) is amended to read: 14  (a) In all actions involving fault of more than one person [PARTY TO THE 15 ACTION], including third-party defendants and persons who have been released under 16 AS 09.17.091 [AS 09.16.040], the court, unless otherwise agreed by all parties, shall 17 instruct the jury to answer special interrogatories or, if there is no jury, shall make 18 findings, indicating 19  (1) the amount of damages each claimant would be entitled to recover 20 if contributory fault is disregarded; and 21  (2) the percentage of the total fault [OF ALL OF THE PARTIES TO 22 EACH CLAIM] that is allocated to each claimant, defendant, third-party defendant, 23 [AND] person who has been released from liability under AS 09.17.091, or other 24 person responsible for the damages to each claimant regardless of whether the 25 other person, including an employer, is or could have been named as a party to 26 the action [AS 09.16.040]. 27 * Sec. 11. AS 09.17.080(c) is amended to read: 28  (c) The court shall determine the award of damages to each claimant in 29 accordance with the findings [, SUBJECT TO A REDUCTION UNDER 30 AS 09.16.040], and enter judgment against each party liable. The court also shall 31 determine and state in the judgment each party's equitable share of the obligation to

01 each claimant in accordance with the respective percentages of fault as determined 02 under (a) of this section. An assessment of a percentage of fault against a person 03 who is not a party may only be used as a measure for accurately determining the 04 percentages of fault of a named party. Assessment of a percentage of fault 05 against a person who is not a party does not subject that person to civil liability 06 in that action and may not be used as evidence of civil liability in another action. 07 * Sec. 12. AS 09.17 is amended by adding a new section to read: 08  Sec. 09.17.091. EFFECT OF RELEASE. When a release or covenant not to 09 sue or not to enforce judgment is given in good faith to one of two or more persons 10 civilly liable for the same injury or the same wrongful death it does not discharge any 11 of the other persons from liability for the injury or wrongful death unless its terms so 12 provide. 13 * Sec. 13. AS 09.30.065 is repealed and reenacted to read: 14  Sec. 09.30.065. OFFERS OF JUDGMENT. (a) At any time more than 10 15 days before the trial begins either the party making a claim or the party defending 16 against a claim may serve upon the adverse party an offer to allow judgment to be 17 entered in complete satisfaction of the claim for the money or property or to the effect 18 specified in the offer, with costs then accrued. If within 10 days after the service of 19 the offer the adverse party serves written notice that the offer is accepted, either party 20 may then file the offer and notice of acceptance together with proof of service, and the 21 clerk shall enter judgment. An offer not accepted within 10 days is considered 22 withdrawn and evidence of that offer is not admissible except in a proceeding to 23 determine the form of judgment after verdict. 24  (b) If the judgment finally entered on the claim as to which an offer has been 25 made under this section is at least five percent less favorable to the offeree than the 26 offer, the offeree shall pay costs as allowed under the Alaska Rules of Civil Procedure 27 and all reasonable attorney fees incurred by the offeror from the date the offer was 28 made. In comparing the offer to judgment finally entered, the court may not consider 29 prejudgment interest payable under the judgment during the period between when 30 payment would have been made under the offer and the date of entry of judgment. 31 * Sec. 14. AS 09.30.070(a) is amended to read:

01  (a) Notwithstanding AS 45.45.010, the [THE] rate of interest on judgments 02 and decrees for the payment of money, including prejudgment interest, is three 03 percent above the interest rate set by the United States Bureau of the Public Debt 04 for five-year treasury notes in effect on the day on which the judgment or decree 05 is entered [10.5 PERCENT A YEAR], except that a judgment or decree founded on 06 a contract in writing, providing for the payment of interest until paid at a specified rate 07 not exceeding the legal rate of interest for that type of contract, bears interest at the 08 rate specified in the contract if the interest rate is set out in the judgment or decree. 09 * Sec. 15. AS 09.55 is amended by adding a new section to read: 10  Sec. 09.55.551. EXPERT WITNESS QUALIFICATION. (a) Except as 11 provided under (b) of this section, an action based upon professional negligence, a 12 person may not testify as an expert witness on the issue of the appropriate standard of 13 care unless the witness is a professional who is licensed in this state or is licensed in 14 another state or country and 15  (1) is trained and experienced in the same discipline or school of 16 practice as the defendant or in an area directly related to a matter at issue; and 17  (2) is certified by a board recognized by the state as having 18 acknowledged expertise and training directly related to the particular field or matter 19 at issue. 20  (b) The provisions of (a) of this section do not apply to a person who is 21 testifying on the appropriate standard of care in a profession that is not licensed in this 22 state, or another state or country, and who the court determines is qualified as an 23 expert witness. 24 * Sec. 16. AS 09.55.560 is amended by adding a new paragraph to read: 25  (4) "professional negligence" means a negligent act or omission in 26 rendering professional services. 27 * Sec. 17. AS 09.55 is amended by adding a new section to read: 28 ARTICLE 8. MANDATORY ARBITRATION. 29  Sec. 09.55.700. MANDATORY ARBITRATION. (a) A person who files a 30 civil action for personal injury, death, or property damage shall also submit the claim 31 to the court for arbitration unless the action is excluded under (b) of this section. The

01 costs of arbitration shall be paid in equal shares by the parties. 02  (b) A civil action is not required to be arbitrated as provided under (a) of this 03 section if the 04  (1) amount claimed by a party, excluding interest, costs, and attorney 05 fees, exceeds $50,000; 06  (2) parties have, under a written agreement made before or after the 07 accrual of the action, agreed to submit the claim to arbitration; or 08  (3) action 09  (A) is a class action; 10  (B) seeks equitable or declaratory relief; 11  (C) concerns the title to real property; 12  (D) is a probate action; 13  (E) is an appeal from a court of limited jurisdiction; 14  (F) involves divorce or domestic relations; 15  (G) is an appeal from action by an administrative agency; 16  (H) is a small claims action. 17  (c) When a claim is submitted as required by (a) of this section, the court shall 18 appoint an arbitrator to review the claim. An arbitrator appointed under this section 19 must be a member of the state bar association who has been admitted to the bar for 20 a minimum of five years or a member of the state bar association who is a retired 21 judge. The arbitrator appointed to review the claim shall interview the parties and 22 examine all records or materials relating to the claim and may compel the attendance 23 of witnesses, interview the parties, or consult with medical specialists. 24  (d) An arbitrator appointed under this section shall conduct a prehearing 25 settlement conference within 30 days after the appointment. The arbitrator shall 26 establish a period for discovery and a date for a hearing. The hearing date may not 27 be more than 120 days after the settlement conference. 28  (e) An arbitrator shall render a decision within 30 days after hearing a claim 29 under (d) of this section. The decision must contain findings of fact and conclusions 30 of law. The decision of the arbitrator may be rejected by a party. 31  (f) If the decision of the arbitrator is rejected by a party, the action may

01 proceed in the appropriate court. If an offer of judgment has not been entered by a 02 party, costs or actual reasonable attorney fees shall be assessed against a party who 03 requests a trial after arbitration, and who fails to improve that party's position in the 04 trial de novo. 05  (g) The provisions of AS 09.43.010 - 09.43.180 (Uniform Arbitration Act) 06 apply to an arbitration under this section to the extent the provisions do not conflict 07 with the provisions of this section. 08  (h) Attorney fees and costs shall be included in the arbitrator's award only if 09 a party is found not liable or is awarded more than the party would have been awarded 10 under an offer of judgment entered under AS 09.30.065. If attorney fees and costs are 11 awarded, attorney fees and costs shall be calculated under the Alaska Rules of Civil 12 Procedure or AS 09.30.065, whichever applies. 13 * Sec. 18. AS 09.65 is amended by adding a new section to read: 14  Sec. 09.65.096. CIVIL LIABILITY OF HOSPITALS FOR CERTAIN 15 NONEMPLOYEES. (a) A hospital is not liable for civil damages as a result of an 16 act or omission by an emergency room physician who is not an employee or actual 17 agent of the hospital if the hospital provides notice that the emergency room physician 18 is an independent contractor and the emergency room physician is insured as described 19 under (c) of this section. The notice required by this subsection must be posted 20 conspicuously in all admitting areas of the hospital, published at least annually in a 21 newspaper of general circulation in the area, and must be in substantially the following 22 form: 23 Notice of Limited Liability 24 The following emergency room physicians are independent 25 contractors and are not employees of the hospital: 26 (List specific emergency room physicians) 27 The hospital is responsible for exercising reasonable care in granting privileges to 28 practice in the hospital, for reviewing those privileges on a regular basis, and for 29 taking appropriate steps to revoke or restrict privileges in appropriate circumstances. 30 The hospital is not otherwise liable for the acts or omissions of an emergency room 31 physician who is an independent contractor.

01  (b) This section does not preclude liability for civil damages that are the 02 proximate result of the hospital's own negligence or intentional misconduct. 03  (c) A hospital is not immune from liability under (a) of this section for an act 04 or omission of an emergency room physician who is an independent contractor unless 05 the emergency room physician has liability insurance coverage in the amount of at 06 least $500,000 per incident and the coverage is in effect and applicable to those health 07 care services offered by the emergency room physician that the hospital is required to 08 provide by law or by accreditation requirements. 09  (d) In this section, 10  (1) "emergency room physician" means a physician who provides health 11 care services in a hospital emergency room; 12  (2) "hospital" has the meaning given in AS 18.20.130 and includes a 13 governmentally owned or operated hospital; 14  (3) "independent contractor" means a licensed health care provider who 15 has been granted specified privileges to render health care services directly or 16 indirectly to patients at the hospital, but who is not an employee or actual agent of the 17 hospital in connection with the rendition of the health care services. 18 * Sec. 19. AS 09.65 is amended by adding a new section to read: 19  Sec. 09.65.190. CIVIL LIABILITY FOR FALSE CLAIMS AND IMPROPER 20 PRACTICE. (a) A person may not 21  (1) knowingly or recklessly file, or cause to be filed, a civil complaint, 22 answer, or other civil pleading that contains false allegations or material misstatements 23 of fact; 24  (2) sign a civil pleading before making reasonable inquiry and 25 determining that, to the best of the signer's knowledge, information, and belief, each 26 claim, defense, and allegation contained in the pleading is well grounded in fact and 27 is warranted by existing law or a good faith argument for the extension, modification, 28 or reversal of existing law; or 29  (3) interpose, in a civil action, a claim, defense, or allegation for an 30 improper purpose, including to harass or to cause unnecessary delay or needless 31 increase in the cost of litigation.

01  (b) If the trier of fact determines that a party to a civil action has intentionally 02 made a false statement of a material fact in connection with the prosecution or defense 03 of a civil action, the court shall enter judgment against the party making the false 04 statement on the issue to which the false statement relates. If the civil action involves 05 multiple claims and the false statement does not apply to all claims, the judgment 06 required under this section shall apply only to those claims to which the false 07 statement relates. 08  (c) A person who is injured by a violation of (a) of this section may bring an 09 action for compensatory and punitive damages. However, if the injury is the result of 10 an act or omission of a 11  (1) party, then the action shall be asserted in the same action in which 12 the injury arose; and 13  (2) party attorney, then the action shall be asserted in a separate action 14 commenced after entry of final judgment in the action in which the injury arose. 15  (d) A person who, on the person's own behalf or as a party's attorney, takes 16 part in the initiation, defense, continuation, or procurement of a civil action against 17 another is subject to civil liability for compensatory and punitive damages if the person 18 acts 19  (1) without probable cause on a claim or defense; or 20  (2) primarily for a purpose other than that of securing the proper 21 adjudication of a claim or defense involved in the civil action. 22  (e) In an action to recover damages under (c) of this section, a person is not 23 required to be the prevailing party in the civil action in which the violation of (a) of 24 this section occurred. 25  (f) A person may not bring a civil action to recover damages under (d) of this 26 section unless final judgment has been entered in the civil action described in (d) of 27 this section. For purposes of this subsection, a person is not required to be the 28 prevailing party in the civil action in which the violation of (d) of this section 29 occurred. 30  (g) If a person brings an action under (c) or (d) of this section, the court shall 31 award actual reasonable attorney fees to the prevailing party, regardless of whether the

01 prevailing party is the plaintiff or defendant. 02  (h) Neither the state, nor an agent or employee of the state acting within the 03 scope of that agency or employment, is subject to liability under this section. 04 * Sec. 20. AS 09.65.210 is repealed and reenacted to read: 05  Sec. 09.65.210. DAMAGES RESULTING FROM COMMISSION OF A 06 FELONY. (a) A person who suffers personal injury or property damage may not 07 recover damages for the personal injury or property damage if the injury occurred 08 while the person was committing or attempting to commit a felony, or fleeing from the 09 commission of a felony, and the felony substantially contributed to the injury or 10 property damage. 11  (b) The personal representative of a deceased person may not recover damages 12 for the person's death if the court determines by clear and convincing evidence that 13 the death occurred while the person was committing or attempting to commit a felony, 14 or fleeing from the commission of a felony, and that the felony substantially 15 contributed to the death. 16 * Sec. 21. AS 09.68 is amended by adding a new section to read: 17  Sec. 09.68.125. SIGNING OF PLEADINGS, MOTIONS, AND OTHER 18 PAPERS; SANCTIONS. Every pleading, motion, and other paper of a party 19 represented by an attorney shall be signed by at least one attorney of record in the 20 attorney's individual name, whose address shall be stated. A party who is not 21 represented by an attorney shall sign the party's pleading, motion, or other paper and 22 state the party's address. Except when otherwise specifically provided by the Alaska 23 Rules of Civil Procedure or statute, pleadings need not be verified or accompanied by 24 affidavit. The signature of an attorney or party constitutes a certificate by the signer 25 that the signer has read the pleading, motion, or other paper; that to the best of the 26 signer's knowledge, information, and belief formed after reasonable inquiry it is well 27 grounded in fact and is warranted by existing law or a good faith argument of the 28 extension, modification, or reversal of existing law; and that it is not interposed for any 29 improper purpose, including to harass or to cause unnecessary delay or needless 30 increase in the cost of litigation. If a pleading, motion, or other paper is not signed, 31 it shall be stricken unless it is signed promptly after the omission is called to the

01 attention of the pleader or movant. If it is alleged or appears that a pleading, motion, 02 or other paper is signed in violation of this section, the court, upon motion or upon its 03 own initiative, may set the matter for hearing. If the court determines that a pleading, 04 motion, or other paper is signed in violation of this section, the court shall impose 05 upon the person who signed it, a represented party, or both, an appropriate sanction 06 that may include an order to pay to the other party the amount of the reasonable 07 expenses incurred because of the filing of the pleading, motion, or other paper, 08 including costs and attorney fees, and monetary sanctions not to exceed $10,000. 09 * Sec. 22. REPORT. The director of the division of insurance shall determine the effects 10 of this Act on the liability insurance rates in this state and shall present a report of the 11 director's findings to the legislature by January 1, 1998. In this section, "liability insurance" 12 has the meaning given in AS 21.12.070(a)(2). 13 * Sec. 23. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the 14 application of a provision of this Act to any person or circumstance is held invalid, the 15 remainder of this Act and the application to other persons shall not be affected. 16 * Sec. 24. APPLICABILITY. Sections 6 and 7 of this Act apply to a civil action that has 17 accrued on, after, or before the effective date of this Act, if judgment has not been entered in 18 the civil action before the effective date of this Act. Except for secs. 6 and 7 of this Act, this 19 Act applies to all causes of action accruing on or after the effective date of this Act.