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2004 TORT REFORMS CREATED MEASURABLE IMPACT
Barbour for Governor releases extended “Heart of the Matter” online commercial; notes significant changes to the medical and legal climates of Mississippi following the 2004 tort reform legislation
JACKSON (September 14, 2007) – Today, the Barbour for Governor Campaign released online an extended version of its “Heart of the Matter” commercial featuring Dr. Kevin Galloway, along with additional facts from the 2004 tort reform legislation supporting the commercial’s message. The extended version of “Heart of the Matter” can be viewed online: http://www.youtube.com/watch?v=Pul4681HUkw
2004 Tort Reform Achievements
Venue Reforms – Frivolous lawsuits were often filed in jurisdictions with a history of high verdicts. The 2004 legislation reformed venues to require trial in the county where the event in question occurred. Other 2002 legislation with overlapping code sections had prevented venue reforms in the 2002 tort reform legislation from being enacted. It took the 2004 legislation to correct the legislature’s nullification of the earlier reforms.
Damage Caps – Non-Economic damages were hard capped at $500,000 in medical malpractice and $1 million in all other cases. This removed the damage escalations in the 2002 legislation and also removed significant loopholes in the 2002 caps.
Joint Liability – This legislation eliminated joint liability and made defendants only responsible for the damages they caused. Under the 2002 legislation, a doctor could be allocated fault and damages beyond their reasonable share.
Innocent Seller – A seller of a product (including medical equipment) can not be held liable unless he had control over the design, testing, manufacturing, packaging, or labeling of a product – or had knowledge of the defect. The 2004 reform eliminated a provision in the 2002 legislation that said even if a seller were found to be innocent and not liable, they would remain a defendant in the case. This provision had been inserted to allow lawyers to keep cases in a particular jurisdiction, state court, or prevent it from being removed to federal court.
Allocation of Fault – The 2004 legislation also allowed for the allocation of fault to an immune entity or other entity as defined by the tort claims act, such as a community hospital. The 2002 legislation had no such provision.
Measured Impact
These achievements in the 2004 legislation created significant improvements to the health care environment in Mississippi and ended the health care crisis caused by lawsuit abuse. After the 2002 law passed, the Medical Assurance Company of Mississippi (MACM) increased their rates by 54% in 2003 and then again by 19.4% in 2004. After the enactment of meaningful tort reform in 2004, MACM refunded 15% of the 2005 premium and they have continued to cut their rates every year since.
2002 – Partial Tort Legislation Passed
2003 – 54% premium increase
2004 – 19.4% premium increase
2004 – (Sept) Barbour Tort Legislation Passed
2005 – No change in premium (In December, 15% of premium paid was refunded)
2006 – 5% premium decrease
2007 – 10% premium decrease
2008 – 15.5% premium decrease
Heart of the Matter
Dr. Kevin Galloway puts a doctor’s face on the impact of the 2004 tort reform legislation. He says in the extended online commercial, “When I first started my practice in Mississippi it was particularly challenging...It was a very litigious medical environment and it made it particularly difficult to practice medicine. Health care in Mississippi was in a crisis...I had my doubts about whether or not I could to continue practicing medicine in Mississippi.”
Galloway continues, “When I met Haley Barbour, he was considering running for governor, and at that time I expressed to him my concern over the malpractice environment and the medical crisis in Mississippi. Governor Barbour listened. He understood. He encouraged me to stay in Mississippi. He encouraged me to give the state a chance, and through his leadership and support that significant changes could be made in the medical malpractice environment.”
“As a result of tort reform legislation being passed, good doctors can remain in Mississippi,” Galloway concludes.
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