Tort Reform In Tennessee

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Earlier this year, Tennessee Governor Bill Haslam signed the Tennessee Civil Justice Act of 2011 into law. The legislation is a major overhaul of Tennessee tort law that applies to all causes of action accruing on or after October 1, 2011.  The new law limits the amount of damages that a plaintiff can recover in most tort cases.  It also modifies Tennessee’s existing tort laws regarding venue, appeals, medical malpractice, products liability, and class actions. 
Some key points of the legislation include the following: 

• Non-economic damages, such as pain and suffering, are capped at $750,000 in most cases;

• Punitive damages are capped at twice the amount of compensatory damages or $500,000 in most cases; and

• There is no cap on economic damages that can be objectively quantified (e.g., past and future medical expenses or lost wages).

At some point, the Tennessee Civil Justice Act of 2011 will be challenged on appeal and the Tennessee Supreme Court will be asked to decide whether the damages caps are constitutional.  Tort reform laws in several states have been declared unconstitutional.  For example, in 2010, the Georgia Supreme Court struck down parts of Georgia's tort reform legislation and the Illinois Supreme Court issued a similar ruling.  It remains to be seen how the Tennessee Supreme Court will rule on the issue.
Please contact Callahan Witherington PLLC with questions about tort reform in Tennessee and the Tennessee Civil Justice Act of 2011.