Providing a fair and predictable litigation environment is vital to attracting and growing business. South Carolina’s business leaders believe that it’s time to generate more jobs for our state instead of more lawsuits. Important lawsuit reform legislation is pending in the S.C. Senate, and your Senator can send a message that S.C. is serious about protecting small businesses by supporting this legislation.

Does your senator support protecting small businesses from lawsuit abuse?

BACKGROUND

SC House Bill 3489 and SC Senate Bill 350 are designed to protect small businesses from being crippled by just one lawsuit. On March 3rd the House of Representatives passed House Bill 3489 by a vote of 104 to 9.

   SENATE JUDICIARY COMMITTEE VOTE

On Tuesday, May 18th the Senate Judiciary Committee passed House Bill 3489.

The version of H. 3489 passed by the Senate Judiciary Committee adopted language that renders the limits on punitive damages meaningless for protecting small business.

Senator Shane Massey and Senator Tom Davis led the fight to protect small business during the Senate Judiciary Committee meeting by opposing the meaningless language adopted by the committee. 

On Wednesday, May 19th the Senate voted to set H. 3489 for Special Order. Setting H. 3489 for Special Order is the only realistic way the legislation has an opportunity for debate and passage this legislative session.

29 Senators voted to set H. 3489 for Special Order. 10 senators voted against setting H. 3489 for Special Order which is a vote against protecting small business.

Here's is how the Senate voted:

MADE SPECIAL ORDER H. 3489 (Word version) -- Reps. Harrell, Cato, Sandifer, Cooper, Duncan, Owens, White, Bingham, A.D. Young, Huggins, E.H. Pitts, Edge, Toole, Kirsh, J.R. Smith, G.R. Smith, Brady, Crawford, Barfield, Bedingfield, Erickson, Loftis, Pinson, Rice, Hiott, Littlejohn, Allison, Chalk, Daning, Bowen, Gambrell, Hamilton, Wylie, Sottile, Nanney, Parker, Forrester, Haley, Millwood, Battle, Frye, Simrill, Spires, Thompson, Whitmire, Horne, Clemmons, Skelton and Scott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE "SOUTH CAROLINA FAIRNESS IN CIVIL JUSTICE ACT OF 2009" BY AMENDING ARTICLE 1, CHAPTER 32, TITLE 15, PREVIOUSLY RESERVED, SO AS TO PROVIDE DEFINITIONS FOR PURPOSES OF THE CHAPTER; TO AMEND SECTION 15-32-220, AS AMENDED, RELATING TO LIMITS ON NONECONOMIC DAMAGES, AND ARTICLE 5, CHAPTER 32, TITLE 15, RELATING TO PUNITIVE DAMAGES, BOTH SO AS TO PROVIDE LIMITS ON THE AWARD OF NONECONOMIC AND PUNITIVE DAMAGES IN ALL PERSONAL INJURY ACTIONS AND TO PROVIDE FOR CERTAIN PROCEDURES AND REQUIREMENTS RELATING TO THE AWARD OF THESE DAMAGES; BY ADDING SECTION 1-7-750 SO AS TO ENACT THE "PRIVATE ATTORNEY RETENTION SUNSHINE ACT" TO GOVERN THE RETENTION OF PRIVATE ATTORNEYS BY THE ATTORNEY GENERAL OR A SOLICITOR AND TO PROVIDE TERMS AND CONDITIONS GOVERNING THE RETAINER AGREEMENT INCLUDING LIMITS ON THE COMPENSATION OF OUTSIDE COUNSEL IN CONTINGENCY FEE CASES; TO AMEND SECTION 15-3-670, RELATING TO LIMITATIONS ON ACTIONS BASED ON UNSAFE OR DEFECTIVE IMPROVEMENTS TO REAL PROPERTY, SO AS TO PROVIDE THAT THE VIOLATION OF A BUILDING CODE DOES NOT CONSTITUTE PER SE FRAUD, GROSS NEGLIGENCE, OR RECKLESSNESS; BY ADDING SECTION 15-3-160 SO AS TO PROVIDE A REBUTTABLE PRESUMPTION THAT A MANUFACTURER OR SELLER IS NOT LIABLE FOR A PRODUCT IF IT IS MANUFACTURED OR SOLD IN A MANNER APPROVED BY A GOVERNMENT AGENCY; BY ADDING SECTION 15-5-10 SO AS TO PROVIDE REQUIREMENTS AND PROCEDURES TO BRING, MAINTAIN, AND CERTIFY CLASS ACTIONS; TO AMEND SECTION 15-73-10, RELATING TO LIABILITY OF THE SELLER FOR A DEFECTIVE PRODUCT, SO AS TO PROVIDE THAT THE SELLER IS NOT LIABLE FOR DAMAGE CAUSED ONLY TO THE PRODUCT ITSELF; TO AMEND SECTION 18-9-130, AS AMENDED, RELATING TO THE EFFECT OF A NOTICE OF APPEAL ON THE EXECUTION OF JUDGMENT, SO AS TO PROVIDE LIMITS FOR APPEAL BONDS; TO AMEND SECTIONS 33-6-220 AND 33-44-303, RELATING TO CORPORATIONS AND LIMITED LIABILITY COMPANIES, SO AS TO PROVIDE THAT A JUDGMENT AGAINST A CORPORATION OR LIMITED LIABILITY COMPANY IS A PREREQUISITE TO AN ALTER EGO CLAIM TO PIERCE THE CORPORATE VEIL; TO AMEND SECTION 39-5-20, RELATING TO UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES, SO AS TO PROVIDE ACTIONS OR TRANSACTIONS OTHERWISE PERMITTED OR REGULATED BY THE FEDERAL TRADE COMMISSION OR ANOTHER REGULATORY BODY OR OFFICE ACTING UNDER STATUTORY AUTHORITY OF THIS STATE OR THE UNITED STATES ARE NOT COVERED BY THE ACT; TO AMEND SECTION 39-5-140, RELATING TO AN ACTION FOR DAMAGES ARISING OUT OF AN UNFAIR OR DECEPTIVE TRADE PRACTICE, SO AS TO PROVIDE THAT A PERSON SEEKING DAMAGES SHALL PAY "OUT-OF-POCKET EXPENSES" AND TO DEFINE THIS TERM; TO AMEND SECTION 56-5-6540, AS AMENDED, RELATING TO THE PENALTIES FOR THE MANDATORY USE OF SEATBELTS, SO AS TO PROVIDE THAT A VIOLATION MAY BE CONSIDERED IN A CIVIL ACTION AS EVIDENCE OF COMPARATIVE NEGLIGENCE OR AS EVIDENCE OF FAILURE TO MITIGATE DAMAGES; AND TO REPEAL SECTIONS 15-32-200, 15-32-210, AND 15-32-240 ALL RELATING TO NONECONOMIC DAMAGES AND PROCEDURES REGARDING THE LIMITATION AND COLLECTION OF NONECONOMIC DAMAGES. Senator LARRY MARTIN moved to make the Bill a Special Order. Point of Order Senator MALLOY raised a Point of Order under Rule 39 that the Bill had not been on the desks of the members at least one day prior to second reading and therefore could not be set for Special Order. The PRESIDENT Pro Tempore overruled the Point of Order. The question then was the motion to make the Bill a Special Order. Ayes 29; Nays 10 AYES

Alexander	Bright	Bryant
Campbell	Campsen	Cleary
Courson	Shane Martin	Massey
McConnell	McGill	Mulvaney
O'Dell	Peeler	Rankin
Rose	Ryberg	Setzler
Shoopman	Verdin	Williams
	Total--29 NAYS
Anderson	Hutto	Jackson
Land	Lourie	Malloy
Nicholson	Reese	Scott
Sheheen
	Total--10

The Bill was made a Special Order.

 

SENATE SUBCOMMITTEE VOTE

On April 22, 2010, a Senate subcommittee voted on Senate Bill 350.
The members of the subcommittee on Senate Bill 350 are Senator Larry Martin, Chairman, Pickens; Senator Lee Bright, Spartanburg; Senator Chip Campsen, Charleston; Senator Tom Davis, Beaufort; Senator Brad Hutto, Orangeburg; Senator Gerald Malloy, Darlington; and Senator Luke Rankin, Horry.

An amendment was offered to Senate Bill 350 by Senator Luke Rankin to increase the limit on punitive damages awards to $700,000 or three times compensatory (actual) damages whichever is greater.

The SC Civil Justice Coalition opposes the amendment and here is the business community’s position:

“Secretary of Commerce Joe Taylor recently stated that tort laws are a key factor in every location decision. With a reasonable limit on punitive damages, North Carolina, Georgia, Alabama, Arkansas, Florida, Mississippi and Virginia have a competitive advantage over South Carolina.

The South Carolina business community is asking the General Assembly to  provide limits on punitive damages awards of 3 times compensatory damages or $350,000 whichever is greater. This would move South Carolina into the mainstream in the Southeast and US on punitive damages.”

These senators supported small businesses by voting to maintain in the legislation a reasonable limit of $350,000 or three times compensatory (actual) damages whichever is greater on punitive damages awards:

Senator Larry Martin
Senator Lee Bright
Senator Chip Campsen
Senator Tom Davis
Senator Gerald Malloy

These senators voted to increase the amount of punitive damages awards to $700,000 or three times compensatory (actual) damages:

Senator Luke Rankin
Senator Brad Hutto

An amendment was offered to Senate Bill 350 by Senator Luke Rankin requiring that a defendant disclose his insurance policy coverage to the jury in a civil trial.

The SC Civil Justice Coalition opposes the amendment and here is the business community’s position:

“Supplemental liability insurance is a private issue with no connection to the validity of a person's liability. The amount of insurance a person carries is confidential and should have no influence on the value of a claim.  The two issues relevant to any claim are whether the defendant should be responsible for the damage and what the damage is. The amount of coverage a defendant has should have no bearing on the issue.”

These senators voted to protect small business owners’ privacy by voting against requiring the disclosure of insurance policy coverage including liability limits before the jury:

Senator Larry Martin
Senator Lee Bright
Senator Chip Campsen
Senator Tom Davis

These senators voted to require that small business owners disclose their insurance policy coverage including liability limits to the jury in a civil trial:

Senator Luke Rankin
Senator Brad Hutto
Senator Gerald Malloy