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Biz, citizen concerns stop vote on detrimental 'arguing damages' bill
Proposal would have increased auto insurance rates, further eroded legal system
A bill that would have further deteriorated Pennsylvania’s already dismal legal climate by allowing plaintiff’s attorneys to suggest specific “pain and suffering” awards in their closing arguments of civil auto cases will not get a Senate vote this session.
House Bill 2246, while in its original form would have merely added penalties for injuring emergency responders, was amended on the House floor to include the “arguing damages” language, which was pushed by the Pennsylvania Association for Justice (formerly the Trial Lawyers Association). The PA Chamber partnered with a broad-based coalition of business, medical and insurance groups to warn both lawmakers and consumers of the implications of such legislation.
If passed, the bill would’ve increased insurance premiums by as much as 10 percent, possibly more. Of greater concern, though, was the precedent it would set for other areas of litigation. While this amendment targeted the auto insurance industry, it would inevitably spread to medical malpractice and product liability.
“Enacting measures that would drive up costs for consumers and move Pennsylvania further away from restoring commonsense and personal responsibility to its unbalance legal system shouldn’t be among lawmakers’ priorities – not now or ever,” PA Chamber Vice President Gene Barr said. “Thanks to a successful coalition effort, we were able to convince the Senate that this bill was a detriment to both our legal climate and to the pocketbooks of Pennsylvanians.”
The PA Chamber issued alerts to educate its membership and the general public about the implications of this proposal, and worked with Senate lawmakers to urge that the bill not be brought up for a vote. Senate leaders acknowledged that the PA Chamber and other opponents of the provision “very skillfully and comprehensively” raised a number of issues with the bill, which prevented further action. The PA Chamber thanks the Senate for protecting job creators and consumers by rejecting this attempt to further worsen the state’s legal system.
Pennsylvania ranked dead last for its legal climate in the recent Boardroom Guide to Litigation: An Analysis of the Legal Climates of all 50 States. The study’s authors specifically noted that Pennsylvania’s unbalanced liability climate strongly discourages job creation and growth, and shows no signs of improvement in the near future. Another study, the Institute for Legal Reform’s most recent Lawsuit Climate: Ranking the States positioned Pennsylvania 36th. Other studies indicate similar results – Pennsylvania has one of the worst liability climates in the nation.
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Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business.
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