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CSSB 15(JUD) Detail
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CSSB 15(JUD): "An Act relating to civil actions; relating to motor vehicle liability insurance and bonds; amending Rules 16.1, 26, 41, 49, 72.1, 79(b), 82(b), 95, and 100, Alaska Rules of Civil Procedure; amending Rules 1 and 4, Alaska District Court Rules of Civil Procedure; amending Rule 511, Alaska Rules of Appellate Procedure; and repealing Rule 72.1, Alaska Rules of Civil Procedure; and providing for an effective date."

00CS FOR SENATE BILL NO. 15(JUD) 01 "An Act relating to civil actions; relating to motor vehicle liability insurance and 02 bonds; amending Rules 16.1, 26, 41, 49, 72.1, 79(b), 82(b), 95, and 100, Alaska 03 Rules of Civil Procedure; amending Rules 1 and 4, Alaska District Court Rules 04 of Civil Procedure; amending Rule 511, Alaska Rules of Appellate Procedure; and 05 repealing Rule 72.1, Alaska Rules of Civil Procedure; and providing for an 06 effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. PURPOSE. It is the purpose of this Act to 09 (1) reduce the time and costs associated with civil litigation; 10 (2) improve access to justice for individuals and small businesses; 11 (3) provide for fair but not excessive compensation for persons injured through 12 the fault of others; 13 (4) increase the predictability of case outcomes to reduce inappropriate 14 litigation and settlement behavior; and

01 (5) collect information on the civil justice system and on the insurance industry 02 to inform the public policy debate on tort reform related issues. 03 * Sec. 2. AS 06.05.473(h) is amended to read: 04 (h) After the payment of all other claims, including interest at the rate of 10.5 05 percent a year [ESTABLISHED UNDER AS 09.30.070], the department shall pay 06 claims that are otherwise valid but that were not filed within the time prescribed. 07 * Sec. 3. AS 09.10.050 is repealed and reenacted to read: 08 Sec. 09.10.050. Certain property actions to be brought in six years. Unless 09 the action is commenced within six years, a person may not bring an action for waste 10 or trespass upon real property. 11 * Sec. 4. AS 09.10 is amended by adding a new section to read: 12 Sec. 09.10.065. Contract actions to be brought in three years. Unless an 13 action is commenced within three years, a person may not bring an action upon a 14 contract or liability, express or implied, excepting those described in AS 09.10.040 or 15 as otherwise provided by law. 16 * Sec. 5. AS 09.10.070(a) is amended to read: 17 (a) A person may not bring an action (1) for libel, slander, assault, battery, 18 seduction, false imprisonment, or for any injury to the person or rights of another not 19 arising on contract and not specifically provided otherwise; (2) for taking, detaining, 20 or injuring personal property, including an action for its specific recovery; (3) 21 upon a statute for a forfeiture or penalty to the state; or (4) [(3)] upon a liability 22 created by statute, other than a penalty or forfeiture; unless the action is commenced 23 within two years. 24 * Sec. 6. AS 09.17.010(c) is amended to read: 25 (c) The limit under (b) of this section does not apply to damages for severe 26 disfigurement or severe physical impairment. 27 * Sec. 7. AS 09.17.020 is repealed and reenacted to read: 28 Sec. 09.17.020. Punitive damages. (a) In an action in which a claim of 29 punitive damages is presented to the fact finder, the fact finder shall determine, 30 concurrent with all other issues presented, whether punitive damages shall be allowed 31 by using the standards set out in (b) of this section. If punitive damages are allowed,

01 a separate proceeding under (c) of this section shall be conducted before the same fact 02 finder to determine the amount of punitive damages to be awarded. 03 (b) The fact finder may make an award of punitive damages only if the 04 plaintiff proves by clear and convincing evidence that the defendant's conduct 05 (1) was outrageous; 06 (2) was the result of malicious or hostile feelings toward the plaintiff; 07 or 08 (3) evidenced reckless indifference to the rights or safety of others. 09 (c) At the separate proceeding to determine the amount of punitive damages 10 to be awarded, the fact finder may consider 11 (1) the likelihood at the time of the conduct that serious harm would 12 arise from the defendant's conduct; 13 (2) the degree of the defendant's awareness of the likelihood described 14 in (1) of this subsection; 15 (3) the amount of financial gain the defendant gained or expected to 16 gain as a result of the defendant's conduct; 17 (4) the duration of the conduct and any intentional concealment of the 18 conduct; 19 (5) the attitude and conduct of the defendant upon discovery of the 20 conduct; 21 (6) the financial condition of the defendant; and 22 (7) the total deterrence of other damages and punishment imposed on 23 the defendant as a result of the conduct, including compensatory and punitive damages 24 awards to persons in situations similar to those of the plaintiff and the severity of the 25 criminal penalties to which the defendant has been or may be subjected. 26 (d) At the conclusion of the separate proceeding under (c) of this section, the 27 fact finder shall determine the amount of punitive damages to be awarded, and the 28 court shall enter judgment for that amount. 29 (e) Unless that evidence is relevant to another issue in the case, discovery of 30 evidence that is relevant to the amount of punitive damages to be determined under 31 (c)(3) or (6) of this section may not be conducted until after the fact finder has

01 determined that an award of punitive damages is allowed under (a) and (b) of this 02 section. The court may issue orders as necessary, including directing the parties to 03 have the information relevant to the amount of punitive damages to be determined 04 under (c)(3) or (6) of this section available for production immediately at the close of 05 the initial trial in order to minimize the delay between the initial trial and the separate 06 proceeding to determine the amount of punitive damages. 07 (f) Except as provided in (g) of this section or otherwise provided by law, an 08 award of punitive damages may not exceed the greater of 09 (1) three times the amount of compensatory damages awarded to the 10 plaintiff in the action; or 11 (2) the sum of $500,000. 12 (g) Except as otherwise provided by law, if the fact finder finds that the 13 conduct proven under (b) of this section was motivated by financial gain, it may award 14 an amount of punitive damages not to exceed the greatest of 15 (1) the amount calculated under the limitation in (f) of this section; 16 (2) the average net annual income earned by the defendant for the five 17 years before the date the trial began; or 18 (3) two times the amount of financial gain that the defendant received 19 or expected to receive as a result of the defendant's misconduct. 20 (h) Punitive damages may not be awarded against a person that is immune by 21 law from an award of punitive damages. 22 * Sec. 8. AS 09.17.900 is amended to read: 23 Sec. 09.17.900. Definition. In this chapter, "fault" includes acts or omissions 24 that are in any measure negligent, [OR] reckless, or intentional toward the person or 25 property of the actor or others, or that subject a person to strict tort liability. The term 26 also includes breach of warranty, unreasonable assumption of risk not constituting an 27 enforceable express consent, misuse of a product for which the defendant otherwise 28 would be liable, and unreasonable failure to avoid an injury or to mitigate damages. 29 Legal requirements of causal relation apply both to fault as the basis for liability and 30 to contributory fault. 31 * Sec. 9. AS 09.30.065 is amended to read:

01 Sec. 09.30.065. Offers of judgment. At any time more than 10 days before 02 the trial begins, either the party making a claim or the party defending against a claim 03 may serve upon the adverse party an offer to allow judgment to be entered in complete 04 satisfaction of the claim for the money or property or to the effect specified in the 05 offer, with costs then accrued. If within 10 days after the service of the offer the 06 adverse party serves written notice that the offer is accepted, either party may then file 07 the offer and notice of acceptance together with proof of service, and the clerk shall 08 enter judgment. An offer not accepted within 10 days is considered withdrawn, and 09 evidence of that offer is not admissible except in a proceeding to determine the form 10 of judgment after verdict. If the judgment finally entered on the claim as to which an 11 offer has been made under this section is not more favorable to the offeree than the 12 offer, the interest awarded under AS 09.30.070 and accrued up to the date judgment 13 is entered shall be adjusted as follows: 14 (1) if the offeree is the party making the claim, the interest rate shall 15 be adjusted as follows: 16 (A) if the offer was served no later than 30 days after both 17 parties made the disclosures required by Rule 26(a)(1), Alaska Rules of 18 Civil Procedure, the interest rate shall be reduced by five percent; 19 (B) if the offer was served more than 30 days after both 20 parties made the disclosures required by Rule 26(a)(1), Alaska Rules of 21 Civil Procedure, but more than 90 days before the trial began, the interest 22 rate shall be reduced by three percent; 23 (C) if the offer was served 90 days or less but more than 10 24 days before the trial began, the interest rate shall be reduced by two 25 percent; this subparagraph does apply if the offer is also subject to (A) of 26 this paragraph [REDUCED BY FIVE PERCENT A YEAR]; 27 (2) if the offeree is the party defending against the claim, the interest 28 rate shall be adjusted as follows: 29 (A) if the offer was served no later than 30 days after both 30 parties made the disclosures required by Rule 26(a)(1), Alaska Rules of 31 Civil Procedure, the interest rate shall be increased by five percent;

01 (B) if the offer was served more than 30 days after both 02 parties made the disclosures required by Rule 26(a)(1), Alaska Rules of 03 Civil Procedure, but more than 90 days before the trial began, the interest 04 rate shall be increased by three percent; 05 (C) if the offer was served 90 days or less but more than 10 06 days before the trial began, the interest rate shall be increased by two 07 percent; this subparagraph does not apply if the offer is also subject to (A) 08 of this paragraph [INCREASED BY FIVE PERCENT A YEAR]. 09 * Sec. 10. AS 09.30.070(a) is amended to read: 10 (a) Notwithstanding AS 45.45.010, the [THE] rate of interest on judgments 11 and decrees for the payment of money, including prejudgment interest, shall be 12 determined in accordance with (c) of this section [IS 10.5 PERCENT A YEAR], 13 except that a judgment or decree founded on a contract in writing, providing for the 14 payment of interest until paid at a specified rate not exceeding the legal rate of interest 15 for that type of contract, bears interest at the rate specified in the contract if the 16 interest rate is set out in the judgment or decree. 17 * Sec. 11. AS 09.30.070 is amended by adding a new subsection to read: 18 (c) Except as otherwise provided in (a) of this section, the rate of interest on 19 judgments and decrees for the payment of money is the rate for a five-year constant 20 maturity United States Treasury note published in the applicable Federal Reserve H.15 21 Statistical Release, plus one and one-half percent. This rate is the rate in effect as of 22 the first business day of the month during which prejudgment interest begins to accrue 23 on a claim under (b) of this section and remains constant with respect to the claim 24 until the judgment or decree is satisfied. This rate of interest shall be determined as 25 of the first business day of every month by the administrative director of the Alaska 26 Court System. 27 * Sec. 12. AS 09.43 is amended by adding a new article to read: 28 Article 3. Alternative Dispute Resolution. 29 Sec. 09.43.310. Findings; purpose. The legislature finds that providing a 30 formalized program of alternative dispute resolution procedures within the existing 31 civil litigation system can promote the timely and efficient resolution of many civil

01 disputes. The purpose of AS 09.43.310 - 09.43.390 is to provide for an initial pilot 02 program of alternative dispute resolution of certain civil cases filed in the superior 03 court on or after January 1, 1998. 04 Sec. 09.43.320. Pilot program for alternative dispute resolution. (a) The 05 supreme court shall provide for a pilot program under AS 09.43.310 - 09.43.390 for 06 the submission of civil cases filed in the superior court, Third Judicial District, to 07 alternative dispute resolution procedures. The program shall begin January 1, 1998, 08 and operate for at least five years. 09 (b) The following types of cases may not be included in the pilot program: 10 (1) divorce and dissolution; 11 (2) adoption, custody, support, visitation, and emancipation of children; 12 (3) children in need of aid cases under AS 47.10 or delinquent minors 13 cases under AS 47.12; 14 (4) domestic violence protective orders under AS 18.66.100 - 15 18.66.180; 16 (5) estate, guardianship, and trust cases filed under AS 13; 17 (6) cases when no answer to the complaint or petition is filed by any 18 party to the case with the court. 19 Sec. 09.43.330. Structure of pilot program. (a) The supreme court shall 20 provide criteria for the screening of covered cases under the program to determine if 21 the cases are appropriate for referral to alternative dispute resolution. The criteria shall 22 be constructed so that at least 50 percent of the estimated number of covered cases 23 filed in a calendar year are referred to alternative dispute resolution. 24 (b) The supreme court shall establish minimum qualifications for a person to 25 be listed to conduct alternative dispute resolution procedures under AS 09.43.310 - 26 09.43.390. The supreme court shall establish a list of persons determined to meet 27 those qualifications and the current schedule of fees charged by the person listed. 28 (c) For a case referred under the program, the parties may mutually agree to 29 select a person to conduct the alternative dispute resolution procedure regardless of 30 whether the person appears on the list established under (b) of this section or whether 31 the person meets the minimum qualifications to be selected for the list. If an

01 agreement cannot be reached, the trial court judge assigned the case shall appoint a 02 person from the list. A person selected or appointed under this subsection has judicial 03 immunity for conducting the alternative dispute procedure to the same extent as a 04 judge and shall abide by applicable rules of confidentiality related to alternative dispute 05 resolution procedures established by the supreme court. 06 (d) Fees and costs to conduct an alternative dispute resolution procedure under 07 AS 09.43.310 - 09.43.390 shall be shared equally among the parties to the case being 08 referred unless the court finds a party wholly or partially indigent and orders total or 09 partial payment at public expense. The supreme court shall establish guidelines for the 10 determination of total or partial indigency under the program. Fees and costs borne 11 at public expense under this subsection constitute a lien on any recovery in the case 12 by that party and shall be paid first from the recovery. 13 (e) The superior court shall establish standards for the timely referral to and 14 the conclusion of the alternative dispute resolution procedure required under this 15 program. The standards must include that the alternative dispute resolution procedure 16 (1) shall terminate no more than 100 days after the defendant's answer 17 is served unless the trial court grants a time extension in an exceptional case and for 18 good cause shown; and 19 (2) be limited to no more than 12 hours for the procedure unless the 20 parties mutually agree to a longer period. 21 Sec. 09.43.340. Evaluation of pilot program. (a) The Alaska Judicial 22 Council shall evaluate annually the efficacy of the pilot program. Among other 23 factors, the evaluation shall address the speed with which cases are resolved, the 24 satisfaction of the parties to the cases, the expenditures made by the parties to the 25 cases, and the expenditure of court resources. 26 (b) The council shall work with the court system to create a system for 27 efficient collection of information needed to evaluate the program. The council shall 28 report the results of its evaluation to the governor and legislature each year by 29 March 31. 30 Sec. 09.43.390. Definitions. In AS 09.43.310 - 09.43.390, 31 (1) "alternative dispute resolution procedure" includes mediation and

01 early neutral evaluation; 02 (2) "covered cases" means civil cases described in AS 09.43.320(a) and 03 not excluded from participation in the program by AS 09.43.320(b); 04 (3) "program" means the alternative dispute resolution pilot program 05 established in AS 09.43.320. 06 * Sec. 13. AS 09.50.280 is amended to read: 07 Sec. 09.50.280. Judgment for plaintiff; punitive damages. If judgment is 08 rendered for the plaintiff, it shall be for the legal amount found due from the state with 09 interest as provided under AS 09.30.070 [LEGAL INTEREST FROM THE DATE 10 IT BECAME DUE] and without punitive damages. 11 * Sec. 14. AS 09.55.440(a) is amended to read: 12 (a) Upon the filing of the declaration of taking and the deposit with the court 13 of the amount of the estimated compensation stated in the declaration, title to the estate 14 as specified in the declaration vests in the plaintiff, and that property is condemned 15 and taken for the use of the plaintiff, and the right to just compensation for it vests in 16 the persons entitled to it. The compensation shall be ascertained and awarded in the 17 proceeding and established by judgment. The judgment must include interest at the 18 rate of 10.5 percent a year [SET OUT IN AS 09.30.070] on the amount finally 19 awarded that [WHICH] exceeds the amount paid into court under the declaration of 20 taking. The interest runs from the date title vests to the date of payment of the 21 judgment. 22 * Sec. 15. AS 09.55.535 is repealed and reenacted to read: 23 Sec. 09.55.535. Mandatory arbitration. (a) A person who files an action for 24 personal injury, death, or property damage shall also submit the claim to the court for 25 arbitration unless the action is excluded under (b) of this section. 26 (b) A person is not required to comply with (a) of this section if the 27 (1) amount in controversy, excluding interest, costs, and attorney fees, 28 exceeds $100,000; 29 (2) parties have, under a written agreement made before the accrual of 30 the action, agreed to submit the claim to arbitration; or 31 (3) action

01 (A) is a class action; 02 (B) seeks equitable or declaratory relief; 03 (C) concerns the title to real property; 04 (D) is a probate action; 05 (E) is an appeal from a court of limited jurisdiction; 06 (F) involves divorce or domestic relations; 07 (G) is an appeal from action by an administrative agency; 08 (H) is subject to the alternative dispute resolution procedure 09 under AS 09.43.320; 10 (I) is a small claims action. 11 (c) When a claim is submitted as required by (a) of this section, the court shall 12 appoint an arbitrator to review the claim. The arbitrator appointed to review the claim 13 shall interview the parties and examine all records or materials relating to the claim 14 and may compel the attendance of witnesses, interview the parties, or consult with 15 medical specialists. 16 (d) An arbitrator appointed under this section shall conduct a prehearing 17 settlement conference within 30 days after the appointment. The arbitrator shall 18 establish a period for discovery and a date for a hearing. The hearing date may not 19 be more than 120 days after the settlement conference. 20 (e) An arbitrator shall render a decision within 30 days after hearing a claim 21 under (d) of this section. The decision must contain findings of fact and conclusions 22 of law. The decision of the arbitrator may be rejected by a party. 23 (f) If the decision of the arbitrator is rejected by a party, the action may 24 proceed in the appropriate court. The arbitrator's decision is admissible in that action 25 to the extent allowed under the Alaska Rules of Evidence and may be used by a party 26 to support or oppose a claim of damages. If a party rejects the decision of the 27 arbitrator and litigates the action in court but is not the prevailing party in the action, 28 the court shall award actual costs and attorney fees to the opposing party. 29 (g) The provisions of AS 09.43.010 - 09.43.180 (Uniform Arbitration Act) 30 apply to an arbitration under this section to the extent the provisions do not conflict 31 with the provisions of this section.

01 * Sec. 16. AS 09.65.210 is repealed and reenacted to read: 02 Sec. 09.65.210. Damages resulting from the commission of a felony or 03 other conduct that would constitute a felony. (a) Except as provided in (b) of this 04 section, a person who suffers personal injury or death may not recover damages for 05 the personal injury or death if the injury or death occurred while the person was 06 (1) engaged in the commission of a felony, and the person has been 07 convicted of the felony, including conviction based on a guilty plea or plea of nolo 08 contendere, and the felony substantially contributed to a personal injury or death; 09 (2) engaged in conduct that would constitute the commission of an 10 unclassified felony or a class A or class B felony for which the person was not 11 convicted and if the conduct 12 (A) substantially contributed to the injury or death; and 13 (B) is proven by the defendant in the civil trial by clear and 14 convincing evidence; or 15 (3) fleeing after the commission, by that person, of conduct that would 16 constitute an unclassified felony or a class A or class B felony, or being apprehended 17 for conduct that would constitute an unclassified felony or class A or class B felony 18 if 19 (A) the conduct during the flight or apprehension substantially 20 contributed to the injury or death; and 21 (B) the conduct that would constitute a felony is proven by the 22 defendant in the civil trial by clear and convincing evidence. 23 (b) If the person is acquitted of all unclassified, class A, and class B felonies 24 arising from the conduct, this section does not preclude the person from recovering 25 damages for those injuries or death. 26 (c) This section does not affect a right of action under 42 U.S.C. 1983. 27 * Sec. 17. AS 09.68 is amended by adding a new section to read: 28 Sec. 09.68.130. Collection of settlement information. (a) Except as 29 provided in (c) of this section, the Alaska Judicial Council shall collect and evaluate 30 information relating to the compromise or other settlement of all civil litigation. The 31 information, including the case name and file number, a general description of the

01 claims being settled, the dollar amount of the settlement, to whom it is to be paid, and 02 any nonmonetary terms, shall be collected on a form developed by the council for that 03 purpose. 04 (b) The information received by the council under (a) of this section is 05 confidential. This restriction does not prevent the disclosure of summaries and 06 statistics in a manner that does not allow the identification of particular cases or 07 parties. 08 (c) The requirements of (a) of this section do not apply to the following types 09 of cases: 10 (1) divorce and dissolution; 11 (2) adoption, custody, support, visitation, and emancipation of children; 12 (3) children in need of aid cases under AS 47.10 or delinquent minors 13 cases under AS 47.12; 14 (4) domestic violence protective orders under AS 18.66.100 - 15 18.66.180; 16 (5) estate, guardianship, and trust cases filed under AS 13; 17 (6) small claims under AS 22.15.040. 18 * Sec. 18. AS 18.80 is amended by adding a new section to read: 19 Sec. 18.80.225. Punitive damages for unlawful employment practices. (a) 20 In an action against an employer to recover damages for an unlawful employment 21 practice prohibited by AS 18.80.220, the amount of punitive damages awarded by the 22 court or jury may not exceed 23 (1) $50,000 if the employer has less than 101 employees; 24 (2) $100,000 if the employer has more than 100 but less than 201 25 employees; 26 (3) $200,000 if the employer has more than 200 but less than 501 27 employees; 28 (4) $300,000 if the employer has more than 500 employees. 29 (b) This section may not be construed to allow an award of punitive damages 30 against the state. 31 (c) In this section, "employees" means persons employed in each of 20 or

01 more calendar weeks in the current or preceding calendar year. 02 * Sec. 19. AS 21.06 is amended by adding a new section to read: 03 Sec. 21.06.087. Insurance report. (a) The director shall require reporting of 04 and shall compile information necessary to evaluate 05 (1) the effect of the measures enacted in this Act on the availability and 06 cost of insurance in the state; and 07 (2) the financial health and profitability of insurers doing business in 08 the state. 09 (b) Information described in (a) of this section shall be provided by all insurers 10 doing business in this state in the format specified by the director and must include 11 factual information stating premiums, claims, expenses, and an allocation of investment 12 profits or losses by line of business written in this state. Information shall be compiled 13 by the division in a way that protects the identity of individual insureds. 14 (c) The director shall adopt regulations to implement and interpret this section, 15 including requiring insurers doing business in the state to provide information 16 necessary for the division of insurance to carry out its responsibilities under (a) and 17 (b) of this section. 18 (d) Beginning June 1, 1999, the information compiled under (a) of this section 19 shall be reported to the governor and the legislature annually. 20 (e) The division may consult with the Alaska Judicial Council when 21 determining what information to require to be reported under (a) - (c) of this section 22 and when implementing the compilation required under (a) of this section. 23 * Sec. 20. AS 21.36 is amended by adding a new section to read: 24 Sec. 21.36.128. Civil action for claim settlement practices. (a) A person 25 who alleges a violation of AS 21.36.125 or a violation of a trade practice or claim 26 settlement regulation adopted by the director may bring a civil action for damages. 27 Notwithstanding any other provision of law, a person bringing an action under this 28 section may not be required to prove that the violation occurred with a frequency that 29 indicates a general business practice. 30 (b) Before filing a civil action under (a) of this section, the person filing the 31 action shall give at least 60 days written notice to the person who committed the

01 violation. Notice required under this subsection must include 02 (1) a copy of the statute or regulation that the person is claimed to have 03 violated; 04 (2) the facts and circumstances giving rise to the violation; 05 (3) the name of any individual involved in the violation; 06 (4) reference to any policy that is relevant to the violation; this 07 paragraph does not apply if the person bringing the civil action is a third party 08 claimant unless the insurer has provided the person bringing the civil action with a 09 copy of the policy; and 10 (5) a statement that the notice is given in compliance with this 11 subsection. 12 (c) If, within 60 days after notice required under (b) of this section is received 13 by the insurer, the insurer pays the damages claimed by the person bringing the action 14 or corrects the settlement practice giving rise to the action, a person may not bring an 15 action under (a) of this section. 16 (d) If an insurer receives a notice described under (b) of this section or settles 17 an alleged violation as provided under (c) of this section, the insurer shall provide a 18 copy of the notice to the director or notify the director of the settlement within 30 days 19 after receiving the notice or settling the matter. 20 (e) Upon mailing or delivering the notice required under (b) of this section, 21 the applicable time limit for commencing an action under (a) of this section shall be 22 tolled for 65 days. 23 (f) If the person filing an action under (a) of this section is a prevailing party, 24 the person may recover 25 (1) costs and reasonable attorney fees; and 26 (2) damages that are foreseeable as a result of the violation, including 27 damages in excess of applicable insurance policy limits. 28 (g) Notwithstanding any other provision of law, a person filing an action under 29 (a) of this section may recover punitive damages if the act or omission giving rise to 30 the violation is 31 (1) wilful, wanton, or malicious; or

01 (2) in reckless disregard of the rights of the person filing the civil 02 action. 03 (h) The rights provided under this section are in addition to other rights 04 provided by law. 05 * Sec. 21. AS 22.10.020(i) is amended to read: 06 (i) The superior court is the court of original jurisdiction over all causes of 07 action arising under the provisions of AS 18.80. A person who is injured or aggrieved 08 by an act, practice, or policy that [WHICH] is prohibited under AS 18.80 may apply 09 to the superior court for relief. The person aggrieved or injured may maintain an 10 action on behalf of that person or on behalf of a class consisting of all persons who 11 are aggrieved or injured by the act, practice, or policy giving rise to the action. In an 12 action brought under this subsection, the court may grant relief as to any act, practice, 13 or policy of the defendant that [WHICH] is prohibited by AS 18.80, regardless of 14 whether each act, practice, or policy, with respect to which relief is granted, directly 15 affects the plaintiff, so long as a class or members of a class of which the plaintiff is 16 a member are or may be aggrieved or injured by the act, practice, or policy. The court 17 may enjoin any act, practice, or policy that [WHICH] is illegal under AS 18.80 and 18 may, subject to AS 18.80.225, order any other relief, including the payment of money, 19 that is appropriate. 20 * Sec. 22. AS 22.15.030(a) is amended to read: 21 (a) The district court has jurisdiction of civil cases, including foreign 22 judgments filed under AS 09.30.200 and arbitration proceedings under AS 09.43.170, 23 as follows: 24 (1) for the recovery of money or damages when the amount claimed 25 exclusive of costs, interest, and attorney fees does not exceed $100,000 [$50,000]; 26 (2) for the recovery of specific personal property [,] when the value of 27 the property claimed and the damages for the detention do not exceed $100,000 28 [$50,000]; 29 (3) for the recovery of a penalty or forfeiture, whether given by statute 30 or arising out of contract, not exceeding $100,000 [$50,000]; 31 (4) to give judgment without action upon the confession of the

01 defendant for any of the cases specified in this section, except for a penalty or 02 forfeiture imposed by statute; 03 (5) for establishing the fact of death or cause and manner of death of 04 any person in the manner prescribed in AS 09.55.020 - 09.55.069; 05 (6) for the recovery of the possession of premises in the manner 06 provided under AS 09.45.070 - 09.45.160 when the value of the arrears and damage 07 to the property does not exceed $100,000 [$50,000]; 08 (7) for the foreclosure of a lien when the amount in controversy does 09 not exceed $100,000 [$50,000]; 10 (8) for the recovery of money or damages in motor vehicle tort cases 11 when the amount claimed exclusive of costs, interest, and attorney fees does not 12 exceed $100,000 [$50,000]; 13 (9) over civil actions for taking utility service and for damages to or 14 interference with a utility line filed under AS 42.20.030; 15 (10) over cases involving protective orders for domestic violence under 16 AS 18.66.100 - 18.66.180. 17 * Sec. 23. AS 28.22 is amended by adding a new section to read: 18 Sec. 28.22.150. Required medical payment policy provision. If the 19 insurance carrier denies coverage for a claim for medical treatment by the insured 20 under a motor vehicle liability policy that contains medical coverage and the claim is 21 later determined to be covered under the policy, the insurance carrier shall pay the 22 insured's 23 (1) actual costs, plus interest from the date the claim is received by the 24 insurer; and 25 (2) actual attorney fees or an amount equal to 50 percent of the 26 disputed claim, whichever is greater; actual attorney fees awarded under this paragraph 27 may not exceed $250 per hour of work performed. 28 * Sec. 24. AS 28.22.201(a) is amended to read: 29 (a) The uninsured and underinsured motorists coverage required under this 30 chapter 31 (1) applies [DOES NOT APPLY] to bodily injury, sickness, disease,

01 or death of an insured or damage to or destruction of property of an insured even if 02 [UNTIL] the limits of liability bonds and policies that apply have not been used up 03 by payments or judgments or settlements; however, the insurer shall, in each 04 instance, receive a credit against the insured's total damages for amounts actually 05 received by the insured for covered claims from other sources, including liability 06 bonds, other insurance policies, judgments, or settlements; 07 (2) must be a single combined coverage; and 08 (3) may be rejected by the insured in writing; if the insured has rejected 09 uninsured or underinsured coverage, the coverage may not be included in a 10 supplemental, renewal, or replacement policy unless the insured subsequently requests 11 uninsured or underinsured coverage in writing. 12 * Sec. 25. Rule 16.1(c), Alaska Rules of Civil Procedure, is amended to read: 13 (c) Motion to Set Trial and Certificate. Unless otherwise ordered by the 14 court, a [A] motion to set trial may not be filed until after the meeting of parties 15 under paragraph (n) of this rule has occurred and the scheduling order under 16 Rule 16(b) has been issued [105 DAYS AFTER SERVICE OF THE SUMMONS 17 AND COMPLAINT]. A party seeking to obtain a trial date must serve and file a 18 motion to set trial together with a certificate, signed by counsel, stating: 19 (1) That the issues in the case have actually been joined; 20 (2) That all parties have completed discovery or will have a reasonable 21 opportunity to do so within the next 60 days; 22 (3) That the procedure for listing witnesses and exhibits and providing 23 exhibit copies, as set forth in paragraph (d) of this rule has been completed; 24 (4) Whether trial by jury has been timely demanded; 25 (5) The estimated number of days for the trial, including estimates for 26 each party's case and for jury selection; 27 (6) The names, addresses and telephone numbers of all attorneys and 28 pro se parties who are responsible for the conduct of the litigation; 29 (7) Which, if any, statute or rule entitles the case to preference on the 30 trial calendar; 31 (8) That the parties have complied with paragraph (k) of this rule.

01 * Sec. 26. Rule 16.1(n), Alaska Rules of Civil Procedure, is repealed and reenacted to read: 02 (n) Meeting of Parties. Except when otherwise ordered, the parties shall, as 03 soon as practicable after the exchange of initial disclosures required under Rule 04 26(a)(1) and in any event at least 14 days before a scheduling conference is held or 05 a scheduling order is due under Rule 16(b), meet to discuss the nature and basis of 06 their claims and defenses and the possibilities for a prompt settlement or resolution of 07 the case and to develop a proposed discovery plan. The attorneys of record and all 08 unrepresented parties that have appeared in the case are jointly responsible for 09 arranging and being present or represented at the meeting, for attempting in good faith 10 to agree on the proposed discovery plan, and for submitting to the court within 10 days 11 after the meeting a written report outlining the proposed discovery plan. The proposed 12 discovery plan shall indicate the parties' views and proposals concerning 13 (1) what changes should be made in the timing or forms of subsequent 14 disclosures under the rules, including a statement as to when the disclosures required 15 under Rule 26(a) were made; 16 (2) the subjects on which discovery may be needed, when discovery 17 should be completed, and whether discovery should be conducted in phases or be 18 limited to or focused upon particular issues; 19 (3) what changes should be made in the limitations on discovery 20 imposed under these rules and what other limitations should be imposed; 21 (4) whether a scheduling conference is unnecessary; 22 (5) whether there will be dispositive or partially dispositive motions 23 filed in the case and whether other deadlines should be set aside pending resolution of 24 the dispositive or partially dispositive motions by the court; and 25 (6) any other orders that should be entered by the court under 26 Rule 16(b) and (c). 27 * Sec. 27. Rule 41(a), Alaska Rules of Civil Procedure, is amended by adding a new 28 paragraph to read: 29 (3) Settlement Information. If a voluntary dismissal under this rule is 30 the result of compromise or other settlement of the parties, the parties shall submit to 31 the Alaska Judicial Council the information required under AS 09.68.130. A notice

01 of dismissal made under (1)[a] of this subsection must be accompanied by a 02 certification signed by or on behalf of the plaintiff that the information required under 03 AS 09.68.130 has been submitted to the Alaska Judicial Council. A stipulation of 04 dismissal made under (1)[b] of this subsection must be accompanied by such a 05 certification signed by or on behalf of all parties who have appeared in the action. 06 The requirements of this paragraph do not apply to the types of cases listed in 07 AS 09.68.130(c). 08 * Sec. 28. Rule 68, Alaska Rules of Civil Procedure, is repealed and reenacted to read: 09 Rule 68. Offer of Judgment. (a) At any time more than 10 days before the 10 trial begins, either the party making a claim or the party defending against a claim may 11 serve upon the adverse party an offer to allow judgment to be entered in complete 12 satisfaction of the claim for the money or property or to the effect specified in the 13 offer, with costs then accrued. The offer may not be revoked in the 10-day period 14 following service of the offer. If, within 10 days after service of the offer, the adverse 15 party serves written notice that the offer is accepted, either party may then file the 16 offer and notice of acceptance together with proof of service, and the clerk shall enter 17 judgment. An offer not accepted within 10 days is considered withdrawn, and 18 evidence of the offer is not admissible except in a proceeding to determine costs. The 19 fact that an offer is made but not accepted does not preclude a subsequent offer. 20 (b) If the judgment finally rendered by the court is not more favorable to the 21 offeree than the offer, the prejudgment interest accrued up to the date judgment is 22 entered shall be adjusted as follows: 23 (1) if the offeree is the party making the claim, the interest rate will be 24 reduced by the amount specified in AS 09.30.065; 25 (2) if the offeree is the party defending against the claim, the interest 26 rate will be increased by the amount specified in AS 09.30.065. 27 (c) If the judgment finally rendered by the court is not more favorable to the 28 offeree than the offer, the court's award of attorney's fees under Rule 82 shall be 29 adjusted as follows: 30 (1) if the offeree is the party making the claim, the court shall adjust 31 its award of attorney's fees to the offeree as follows:

01 (A) if the offer was served no later than 30 days after both 02 parties made the disclosures required by Rule 26(a)(1), the attorney's fees 03 award shall be reduced by 50 percent; 04 (B) if the offer was served more than 30 days after both parties 05 made the disclosures required by Rule 26(a)(1) but more than 90 days before 06 the trial began, the attorney's fees award shall be reduced by 30 percent; 07 (C) if the offer was served 90 days or less but more than 10 08 days before the trial began, the attorney's fees award shall be reduced by 20 09 percent; 10 (2) if the offeree is the party defending against the claim, the court 11 shall adjust its award of attorney's fees to the offeror as follows: 12 (A) if the offer was served no later than 30 days after both 13 parties made the disclosures required by Rule 26(a)(1), the attorney's fees 14 award shall be increased by 50 percent; 15 (B) if the offer was served more than 30 days after both parties 16 made the disclosures required by Rule 26(a)(1) but more than 90 days before 17 the trial began, the attorney's fees award shall be increased by 30 percent; 18 (C) if the offer was served 90 days or less but more than 10 19 days before the trial began, the attorney's fees award shall be increased by 20 20 percent. 21 (d) When the liability of one party to another has been determined by verdict, 22 order, or judgment, but the amount or extent of the liability remains to be determined 23 by further proceedings, the party adjudged liable may make an offer of judgment, 24 which shall have the same effect as an offer made 90 days or less but more than 10 25 days before trial begins, if it is served not less than 10 days before the commencement 26 of hearings to determine the amount or extent of liability. 27 * Sec. 29. Rule 72.1(g), Alaska Rules of Civil Procedure, is amended to read: 28 (g) Discovery. Except by leave of court, no discovery may be conducted until 29 the report of the panel has been filed or until 60 days after selection of the panel [80 30 DAYS HAVE ELAPSED FROM THE DATE THE CASE IS AT ISSUE], whichever 31 is first to occur, unless discovery is further stayed for good cause by order of the court.

01 * Sec. 30. Rule 95(b), Alaska Rules of Civil Procedure, is amended to read: 02 (b) In addition to its authority under (a) of this rule and its power to punish 03 for contempt, a court may, after reasonable notice and an opportunity to show cause 04 to the contrary, and after hearing by the court, if requested, impose a fine not to 05 exceed $10,000.00 [$1,000.00] against any attorney who practices before it for failure 06 to comply with these rules or any rules promulgated by the supreme court. 07 * Sec. 31. Rule 1(a)(1), District Court Rules of Civil Procedure is amended to read: 08 (1) The procedure in civil actions and proceedings before district judges 09 and magistrates shall be governed by the rules governing the procedure in the superior 10 court to the extent that such rules are applicable. However, unless otherwise agreed 11 by all parties or permitted by order of the court in exceptional cases and for good 12 cause shown, discovery shall be limited to the disclosures required under Civil 13 Rule 26(a) and to the taking by each party of the deposition of one or more 14 opposing parties and of one additional person who is not a party. 15 * Sec. 32. Rule 4, District Court Rules of Civil Procedure, is amended by adding a new 16 subsection to read: 17 (b) Unless otherwise permitted by order of the court in exceptional cases and 18 for good cause shown, all parties shall file a memorandum to set the case for trial, as 19 set out in Civil Rule 40(b), no later than 180 days after service of the complaint on all 20 parties to the case. The parties shall submit a joint memorandum to set the case for 21 trial, which may state their separate positions if they do not agree concerning the 22 information or estimates to be provided in the memorandum. The court shall set the 23 trial to commence on a date not less than 30 and not more than 90 days after the filing 24 of the memorandum to set the case for trial, unless a continuance is granted by the 25 court under Civil Rule 40(e). 26 * Sec. 33. Rule 511, Alaska Rules of Appellate Procedure, is amended by adding a new 27 subsection to read: 28 (e) Settlement Information. If a dismissal under (a) or (b) of this rule is the 29 result of compromise or other settlement between the parties, the parties shall submit 30 to the Alaska Judicial Council the information required under AS 09.68.130. A 31 dismissal by agreement under (a) of this rule must be accompanied by a certification

01 signed by the attorneys of record for all parties that the information required under 02 AS 09.68.130 has been submitted to the Alaska Judicial Council. A dismissal by the 03 appellant or petitioner made under (b) of this rule must be accompanied by such a 04 certification signed by the appellant's or petitioner's attorney of record. The 05 requirements of this subsection do not apply to the types of cases listed in 06 AS 09.68.130(c). 07 * Sec. 34. AS 08.64.326(a)(12); AS 08.68.270(10); AS 09.55.536, 09.55.560(2), and 08 09.55.560(3) are repealed. 09 * Sec. 35. AS 28.20.445(c), 28.20.445(h); AS 28.22.211, and AS 28.40.100(a)(22) are 10 repealed. 11 * Sec. 36. Rules 16.1(k)(4) and 72.1, Alaska Rules of Civil Procedure, are repealed. 12 * Sec. 37. AS 09.17.020(a), (c), (d), and (e), as repealed and reenacted by sec. 7 of this 13 Act, have the effect of amending 14 (1) Rule 49, Alaska Rules of Civil Procedure, by requiring the jury to conduct 15 a separate proceeding for the determination of a punitive damages award after it has 16 determined that punitive damages are allowed in a case; and 17 (2) Rule 26(b) and (d), Alaska Rules of Civil Procedure, by affecting the 18 scope, limits, timing, and sequence of discovery allowed in a case. 19 * Sec. 38. AS 09.30.065, as amended by sec. 9 of this Act, has the effect of amending 20 Rule 68, Alaska Rules of Civil Procedure, by altering the manner in which interest under 21 AS 09.30.070 is adjusted under AS 09.30.065 when a judgment is not more favorable to the 22 offeree than the offer. 23 * Sec. 39. AS 09.43.310 - 09.43.390, as enacted by sec. 12 of this Act, has the effect of 24 amending Rule 100, Alaska Rules of Civil Procedure, by making the mediation process 25 mandatory for certain civil cases in the superior court, Third Judicial District, and by 26 expanding the scope of the rule to include other forms of alternative dispute resolution in 27 addition to mediation. 28 * Sec. 40. AS 09.55.535(f), as enacted in sec. 15 of this Act, has the effect of amending 29 Rule 79(b), Alaska Rule of Civil Procedure, by allowing the award of actual costs in certain 30 actions. 31 * Sec. 41. AS 09.55.535(f), as enacted in sec. 15 of this Act, has the effect of amending

01 Rule 82(b), Alaska Rule of Civil Procedure, by allowing the award of actual attorney fees in 02 certain actions. 03 * Sec. 42. AS 28.22.150(2), enacted by sec. 23 of this Act, amends Rule 82(b), Alaska 04 Rules of Civil Procedure, by providing for attorney fee awards in certain cases that may differ 05 from those awarded under Rule 82(b). 06 * Sec. 43. APPLICABILITY. (a) Sections 1, 9, 15, 18, 20, 22, 25, 26, 28 - 32, 34, and 07 35 of this Act apply to all civil actions filed on or after the effective date of those sections. 08 (b) Sections 3 - 8, 10, 11, 13, 16, and 21 of this Act apply to all causes of action 09 accruing on or after the effective date of those sections. 10 (c) Section 12 of this Act applies only to those civil actions covered by the pilot 11 program for alternative dispute resolution established under the provisions of AS 09.43.310 - 12 09.43.390, as enacted by sec. 11 of this Act, filed on or after January 1, 1998. 13 (d) Sections 17, 27, and 33 of this Act apply only to all voluntary dismissals of civil 14 actions filed with the state court on or after January 1, 1998. 15 (e) Sections 19, 23, 24, and 35 of this Act apply to all insurers doing business in this 16 state on or after the effective date of those sections. 17 * Sec. 44. SEVERABILITY. Under AS 01.10.030, if any provision of this Act or the 18 application of a provision of this Act to any person or circumstance is held invalid, the 19 remainder of this Act and the application to other persons shall not be affected. 20 * Sec. 45. REVISOR'S INSTRUCTION. Due to the addition of AS 09.43.310 - 09.43.390 21 in sec. 12 of this Act, in AS 21.89.100(d), the revisor of statutes shall substitute 22 "AS 09.43.010 - 09.43.220" for "AS 09.43." 23 * Sec. 46. (a) AS 09.17.020(a), (c), (d), and (e), as repealed and reenacted by sec. 7 of 24 this Act, take effect only if sec. 37 of this Act receives the two-thirds majority vote of each 25 house required by art. IV, sec. 15, Constitution of the State of Alaska. 26 (b) AS 09.43.310 - 09.43.390, as enacted by sec. 12 of this Act, takes effect only if 27 sec. 38 of this Act receives the two-thirds majority vote of each house required by art. IV, 28 sec. 15, Constitution of the State of Alaska. 29 (c) The amendments or the repeal of the following court rules takes effect only if all 30 amendments and the repeal listed in this subsection receive the two-thirds majority vote of 31 each house required by art. IV, sec. 15, Constitution of the State of Alaska:

01 (1) Rule 16.1(c), Alaska Rules of Civil Procedure, as amended by sec. 25 of 02 this Act; 03 (2) Rule 16.1(n), Alaska Rules of Civil Procedure, as amended by sec. 26 of 04 this Act; 05 (3) Rule 16.1(k)(4), Alaska Rules of Civil Procedure, repealed by sec. 36 of 06 this Act. 07 (d) AS 09.68.130, as enacted by sec. 17 of this Act, takes effect only if secs. 27 and 08 33 both receive the two-thirds majority vote of each house required by art. IV, sec. 15, 09 Constitution of the State of Alaska. 10 * Sec. 47. Sections 1 - 8, 10 - 16, 18 - 24, 34, 35, and 37 - 46 of this Act take effect 11 immediately under AS 01.10.070(c).