04/03/1996 02:05 PM Senate FIN

                                                                               
       CS FOR HOUSE BILL NO. 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."                                                                       
                                                                               
  Daniella  Loper, aide  to  Representative  Brian Porter  was                 
  invited to join the committee  and summarized the bill.  She                 
  clarified statutory limitations and said there was a limited                 
  cap for certain specified injuries.    She further said this                 
  bill would ask for  an eight to ten year  statute of repose.                 
  They  have  re-iterated the  State  of Alaska  Supreme Court                 
  regarding the definition  of punitive damages and  a formula                 
  for making awards.  The Court  could also require posting of                 
  security on payments for mandatory insurance.   Fault should                 
  be allocated to  all parties.   Any offer of judgement  made                 
  within  5%  of  the  judgment  that  is rendered  the  party                 
  declining the  offer will  have  to pay  the other  parties'                 
  attorney  fees and  actual  costs.   A  provision for  civil                 
  liability for hospitals for non-employees has been included.                 
  Another provision has  been included  to help guard  against                 
  lawsuits.  She  referred to a mandatory  arbitration section                 
  and a mandatory insurance rate if the bill should pass.                      
                                                                               
                                                                               
  Co-chairman  Halford posed  a question  on section  9 as  it                 
  applied to the breakout of  liabilities by percentages.   No                 
  percentage could be allocated to any party or to the problem                 
  that is  prohibited or protected  by the statute  of repose.                 
  He related a hypothetical case.  Senator Frank said he would                 
  assume that portion  that could  not be  assigned under  the                 
  statute of repose would just go unassigned.                                  
                                                                               
  (Miscellaneous  conversation  between committee  members and                 
  Ms.  Loper  regarding hypothetical  cases.)   She  said that                 
  Representative Porter does not support  section 9 because it                 
  deletes  a portion  of  the fault.   But  this was  what the                 
  voters  voted  for.    She  further  said if  section  9  is                 
  implemented it would not change much to current law.                         
                                                                               
  Chris Christensen  was invited to  join the  committee.   He                 
  said  the Court System did not support section 12, mandatory                 
  arbitration.  He  said the state  will also have to  pay for                 
  arbitration if the plaintiff is indigent.                                    
                                                                               
  Jeff Bush, Commerce  & Economic  Development was invited  to                 
  join the committee.   He said there  was a problem with  the                 
  statute of repose under section 9.                                           
                                                                               
  Deborah Behr, Department of Law was also invited to join the                 
  committee and testified regarding allocation  of fault.  She                 
  explained that in 1994  a Supreme Court ruling there  was an                 
  apportionment  of   fault  among   all  defendants.     "All                 
  defendants" means "all persons joined in  a legal action".                   
  If they  are not  joined,  fault to  that particular  person                 
  cannot  be allocated.    Co-chairman Halford  continued this                 
  matter until tomorrow at 9:00 a.m.                                           
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Co-chairman Halford  adjourned the meeting  at approximately                 
  3:45 P.M. until tomorrow morning.