Arnold announced his five-point plan for economic recovery last week, which involved a surprising amount of tort legislation reform proposals including caps on punitive damages, emotional trauma rewards and other forms of compensation available to accident victims in California.
“California’s current litigation laws lead to large settlements with little value to consumers but become worth millions to lawyers at the expense of California businesses,” the Governor said. “Current statutes also impede growth by holding businesspersons liable for defective products — even if the seller had no knowledge or control over the defect — and allowing for punitive damage awards that are wildly unpredictable among similar cases.”
While many experts, including Orange County injury attorneys, believe the chances of Arnold getting these measures passed in the legislature because they will be too bogged down with other duties this year, the California Citizens Against Lawsuit Abuse is sure to push the state government to reconsider their prioritization of these measures. One Democratic campaign consultant, Bill Wong, says he doubts the governor’s push to limit corporate responsibility through lawsuits would go over very well with California voters.
To read more about the proposal, see the article in Legal News Line.