Legislature(1997 - 1998)
1997-01-13 Senate Journal
Full Journal pdf1997-01-13 Senate Journal Page 0026 SB 43 SENATE BILL NO. 43 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to civil actions; providing for related insurance reports; amending Alaska Rules of Civil Procedure 16.1, 26, 41, 49, 68, 72.1, 95, and 100; amending District Court Rules of Civil Procedure 1 and 4; amending Alaska Rule of Appellate Procedure 511; and providing for an effective date." was read the first time and referred to the Judiciary and Finance Committees. Fiscal note published today from Department of Commerce and Economic Development. Zero fiscal notes published today from Department of Revenue, Department of Transportation and Public Facilities, Department of Law, Department of Corrections, Department of Administration. Governor's transmittal letter dated January 13: Dear President Miller: In the interest of improving Alaskas business climate while ensuring justice for all Alaskans, I am asking the Legislature to consider this bill to reform the way we resolve civil disputes. It is part of my initiative to encourage growth in our small business community and stems from the recommendations of the Governors Advisory Task Force on Civil Justice Reform which conducted the most comprehensive review of Alaskas tort system ever. The result is a fair and effective bill which, 1997-01-13 Senate Journal Page 0027 SB 43 among other actions, places a cap on punitive damages and reduces frivolous lawsuits and litigation costs while providing justice for innocent victims. During the 1995 and 1996 legislative sessions, tort reform issues received a great deal of attention and SCS CSHB 158(RLS) am S (ctrls fldS) passed by a narrow margin in the final days of the session. I vetoed that bill because I believed it was the product of a flawed public process, dictated poor public policy, and contained serious legal defects and constitutional problems. However, I support fair and legally sound tort reform. In order to find an appropriate resolution to this divisive set of issues, I appointed a diverse group of outstanding Alaskans to study the issues and make recommendations for consideration during this legislative session. The 20 members of the task force represented the interests of large and small businesses, doctors and architects, plaintiff and defense lawyers, Alaska Natives, the Alaska State Legislature, and state departments responsible for law, insurance, and responding to litigation against the state. The members were chair Judge Thomas B. Stewart; vice-chair Marlene A. Johnson; committee chairs Michael J. Burns, Roger F. Holmes, and Julian L. Mason; and members Bill J. Allen, Judith M. Brady, David H. Bundy, Charlie Cole, Jeffrey M. Feldman, Julie Kitka, Don Slone, Stephan H. Williams, Mark R. Williams, and Rodman Wilson. Ex officio members were Attorney General Bruce M. Botelho, Deputy Commissioner of the Department of Commerce and Economic Development Jeffrey W. Bush, Senator Johnny Ellis, Representative Brian Porter, and the Department of Administration, division of risk management director Brad Thompson. The task force members worked hard to gather information, review legislative proposals from Alaska and other states, and conduct public hearings. After considerable discussion, the task force members reached consensus on a number of areas where change is needed in the civil justice system. They sought to avoid constitutional problems and litigation over the bill itself. Most of the recommendations were made unanimously and all were supported by at least two-thirds of the membership. The task force report explaining the reasoning behind each recommendation has been distributed to all members of the legislature. These recommendations represent a sound compromise among many competing points of view. 1997-01-13 Senate Journal Page 0028 SB 43 The attached bill changes the Alaska statutes and Rules of Court in a number of ways. The changes include the following items: a cap on punitive damages of three times compensatory damages or $500,000, whichever is greater, with an alternative cap for cases in which conduct was motivated by financial gain or a defendant has systematically injured a number of employees in an employment context; further limitation on noneconomic damages to clarify that the existing statutory cap may be exceeded only for severe injuries or severe disfigurement; allowing increased fines against attorneys who bring frivolous lawsuits; restrictions on the rights of felons and other persons who commit certain illegal acts to recover for injuries suffered in the course of the criminal activity or arrest; clarification that people who intentionally hurt others will be held liable for their fair share of the harm; an alternative dispute resolution project to facilitate resolution of cases without the expense of trial; streamlined district court procedures to increase access to the court by hearing smaller cases faster and less expensively; changes in superior court procedures to encourage active judicial management of cases and thus decrease overall litigation expense; a floating rate of interest on judgments and decrees that more accurately reflects current conditions to promote prompt settlement of cases and payment of damages; changes in court procedures for offers of judgment to encourage early settlement offers by both plaintiffs and defendants; 1997-01-13 Senate Journal Page 0029 SB 43 shorter statutes of limitation in contract cases to decrease risk and increase predictability in the modern business environment; improvements in the expert advisory panel for medical malpractice cases, so medical professionals can provide more useful advice to the courts in a more timely manner; collection of information on cases that are settled to obtain a full picture of the impact of civil liability laws; collection of information on insurance premiums, claims paid, and investments to allow a more accurate assessment of insurance rates and the effects of civil justice reforms on those rates. The bill is designed to encourage business growth, particularly for small Alaska-grown companies which provide the bulk of our states private sector jobs, while increasing access to justice for all Alaskans. Sincerely, /s/ Tony Knowles Governor