Tort reform aims to reduce the number of tort cases and the amount of compensation awarded. Proponents seek to control compensation and limit non-economic and punitive damages. Opponents argue that limiting damages is unconstitutional and could prioritize monetary loss over public welfare.
Tort reform would reduce the number of tort cases and the dollar amounts rewarded in them. Most tort cases focus on personal injury, but include any situation where personal property, reputation, mind, or body is harmed. More than anything else, proponents of tort reform seek to control the amount of compensation that is given in various situations.
The wrong itself is a subjective area of the right. Refers to any injury or act against a person that causes harm and does not involve contracts. Interpreting what qualifies as legitimate damage for a lawsuit can be difficult to do. Putting a dollar amount on that lawsuit can be just as challenging. Supporters of tort reform believe that the inaccurate nature of tort has allowed claims for and payments of such claims to skyrocket.
There are various types of tort reform proposals. If reform does occur, it would be in small pieces of legislation, each one targeting a specific area of tort. Two specific areas that have garnered a lot of public scrutiny are punitive damages and non-economic damages.
Punitive damages are amounts of money paid to punish a criminal by acting as a deterrent to future similar criminals. These sums of money are usually awarded when the crime is particularly heinous or malicious. Non-economic damages are any money that is paid to compensate the injured party for pain and suffering. This can include the loss of a spouse or loved one.
Advocates of tort reform believe that the number of lawsuits has increased significantly over the past 20 years and that the damages paid have become increasingly large. They attribute social problems such as rising health care costs largely to medical malpractice lawsuits. Advocates want to see reform that limits non-economic damages and prevents excessive punitive damages among other key changes.
Opponents of tort reform believe that limiting these damages is unconstitutional and would have a number of negative effects. They believe that companies would value monetary loss ahead of the public welfare if given the choice. They say companies are less likely to consider the cost of human loss, than economic loss to a business, if there are limitations on how much they would have to pay in wrongful death lawsuits. They believe that limiting payments will limit personal freedoms and choices.
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