Legislature(1993 - 1994)
03/31/1994 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 292
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
Co-Chair Larson announced that, following public testimony,
HB CSHB 292 (JUD) would be placed in a subcommittee
consisting of Representative Parnell as Chair and
Representatives Hanley, MacLean, Navarre and Grussendorf.
REPRESENTATIVE BRIAN PORTER testified in support of CSHB 292
(JUD). He asserted that CSHB 292 (JUD) should result in a
reduction of insurance liability rates and a expansion of
medical services across the state. He noted that there are
opposing legal opinions regarding the constitutionality of
statute of repose provisions in CSHB 292 (JUD). He observed
that CSHB 292 (JUD) contains many components. He asserted
that only adoption of the entire package contained in CSHB
292 (JUD) will result in the desired reductions.
BOB COWAN, ATTORNEY, EXXON PLAINTIFFS testified via the
teleconference network from Anchorage, in opposition to CSHB
292 (JUD). He pointed out that the limit on punitive
damages would be advantageous to large corporations and
disadvantageous to fishing groups. He asserted that the
legislation is designed to help outside and foreign
corporations.
TOM BELTZ, WASILLA testified via the teleconference network
in opposition to CSHB 292 (JUD). He recounted his personal
experience with Workers' Compensation. He maintained that
the legislation will hurt the worker.
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ROGER HOLMES, ATTORNEY, BLISS AND HOLMES testified via the
teleconference network from Anchorage. He referred to the
proposed change in rule 82. He noted that rule 82 is being
restructured. He felt that the rule is being strengthened
and will discourage frivolous lawsuits and force individuals
to accept a reasonable offer.
Mr. Holmes addressed the provision to require periodic
payments in judgement of $100.0 thousand dollars. He noted
that there are concerns that additional litigation would
result from disputes regarding the provision for periodic
payments. He felt that the courts would set standards which
would prevent additional suits. In response to a question
by Representative Martin, Mr. Holmes discussed the awarding
of attorney fees.
KEITH WASSERMAN, DELTA JUNCTION testified via the
teleconference network in opposition to CSHB 292 (JUD). He
questioned if a cap would be placed on judgements. Mr.
Porter noted that an individual can receive economic,
punitive, or non-economic recovery. He observed that under
economic recovery all past and future lost wages without a
cap can be awarded. Under economic recovery all medical
expensives, past and future, can be awarded with no cap.
There is a $500.0 thousand dollars cap on non-economic
damages, such as pain and suffering. The cap for serious
physical impairment has been expanded to $750.0 thousand
dollars. Punitive damages could be awarded with a cap of
$200.0 thousand dollars or three times the amount of non
economic and economic damages whichever is greater.
BRENT LAFAVE, MATSU testified via the teleconference network
in opposition to HB CSHB 292 (JUD). He detailed his
personal injuries and experience with Workers' Compensation.
He emphasized that the individual worker is not able to
afford lawyers and doctors to testify on their behalf during
insurance disputes.
PATTI RIZER, ANCHORAGE testified via the teleconference
network opposition to CSHB 292 (JUD). She maintained that
the legislation favors big business and makes victims
responsible. She referred to litigation involving her son's
death at a ski resort.
HARLAN KNUDSON, PRESIDENT HOSPITAL ASSOCIATION testified in
support of tort reform. He maintained that individuals are
being denied the best quality medical care due to the costs
of health insurance. He asserted that inaction will result
in a hole in the cost of health care.
KRISTI WASSERMAN testified via the teleconference network.
In response to a question by Ms. Wasserman, Representative
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Porter noted that California has initiated similar tort
reform. He noted that in the fifteen years since California
tort reform laws were adopted, medical malpractice insurance
has risen by 85 percent in the state of California. The
rest of the nation experienced a 400 percent increase in
medical malpractice insurance.
RICHARD CATTANACH, UNITED CONSTRUCTION COMPANY, ANCHORAGE
testified via the teleconference network in support of CSHB
292 (JUD). He noted that there is no statute of repose in
Alaska. He explained that a contractor retains,
indefinitely, responsibility for any building they
construct. He asserted that only .50 cents on a dollar
spent in tort reform goes to the claimant. He maintained
that the legislation will get more money to the claimant
while lowering insurance costs.
LES GARA, ATTORNEY, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). He
referred to the six year statute of repose. He noted that
there is a two year statute of repose provision for doctors.
He explained that the statute of repose provisions would
prevent litigation if the individual does not find out about
the injury until 6 or 2 year after the action takes place.
He gave examples of cases of injury that would not be
compensated under the statute of repose. He noted that it
is possible for contamination from faulty storage of
hazardous waste to take place years after the tanks are
stored.
(Tape Change, HFC 94-103, Side 1)
SHELDON WINTERS, ATTORNEY, STATE FARM INSURANCE COMPANY
testified in support of CSHB 292 (JUD). He discussed
provisions dealing with prejudgment interest. He noted that
the legislation ties prejudgment interest to the federal
district reserve rate. There would be no prejudgment
interest on future damages. Any damage for future wage loss
would be reduced by the amount that would have been taken
out for federal or state income taxes. Representative
Porter explained that the intent is that the individual
receive what their net income would have been. No income
tax will be paid on the award.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
BRUCE RIZER, ANCHORAGE testified via the teleconference
network in opposition to CSHB 292 (JUD). He maintained that
the function of tort law is to hold persons responsible for
their actions. He recounted his experience with litigation
resulting from the tragic death of his son. He asserted
that insurance companies use every maneuver to stymie
investigation and drive the cost of litigation up, while
denying any responsibility
PAUL FUHS, ACTING COMMISSIONER, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT noted that the lack of a statute of
repose is effecting the state's ability to promote value
added manufacturing in Alaska.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
JEFF FELDMAN, ATTORNEY, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). He
asserted that CSHB 292 (JUD) is a "fundamental attack on the
system of justice in Alaska." He maintained that CSHB 292
(JUD) is special interest legislation that affects and
benefits wrongdoers, whose conduct injures or kills
Alaskans. He observed that insurers and outside
corporations will benefit from the legislation. He alleged
that the "court house doors will be locked before Alaskans
have reason to know they have been victimized." He gave
examples of how the six year statute of limitation could
affect victims.
Mr. Feldman referred to a letter by the Department of Law,
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March 8, 1994 (copy on file). He asserted that if victims
are not able to obtain compensation from wrongdoers, the
state will have the obligation through medicare and medicaid
requirements to financially supporting those Alaskans who
cannot obtain compensation.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
KEVIN MORFORD, CO-CHAIR, GREEN PARTY testified via the
teleconference network in opposition to CSHB 292 (JUD). He
noted that the Green Party unanimously passed a resolution
opposing CSHB 292 (JUD). He maintained that the right to a
trial by jury is a constitutional right of great importance.
He observed that a civil jury trial is the only legal remedy
available as a manner of right to persons who have been
injured by the negligence of others. He asserted that the
legislation is the result of a lobbing effort on the part of
insurance companies and other special interest groups which
wish to reduce their potential liability to the victims of
negligence.
Mr. Morford suggested that the best way to lower the cost of
civil litigation is to fund consumer protection and enact
regulations to ensure that injuries do not happen.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
MIKE SCHEINDER, ANCHORAGE testified via the teleconference
network in opposition to CSHB 292 (JUD). He referred to
Kaiser versus Brian Electric 695 federal section 207. He
noted that faulty wiring caused the death of 160 people in a
restaurant. Under CSHB 292 (JUD) litigation resulting from
the deaths resulting from the faulty wiring would not have
been allowed due to the statute of repose. He observed that
there is no provision to assist consumers in any aspects of
their endeavors or makes access to justice easier. He
discussed the Canadian system.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
DARREL NELSON, ANCHORAGE testified via the teleconference
network in opposition to HB CSHB 292 (JUD). He stressed
that a child will not know what happened to them by age
eight. He stressed that a child of eight is not able to
handle the litigation process. He noted that parents may
not know the law well enough to instigate proceedings on
behalf of their children.
BONNIE NELSON, AKPIRG, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). She
maintained that there are not a lot of frivolous law suits.
She suggested that a neutral body be commissioned to look
into the impacts of the legislation.
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