How often have you heard about a lawsuit where a big company was forced to pay millions because some accidental or misuse of their product caused someone “pain and suffering”? One good example of this is several years back when a woman spilled hot coffee on herself at McDonald’s. Was McDonald’s responsible for the burns caused because the woman balanced her beverage in her lap as she drove? The court said, yes, partially. And because McDonald’s met a certain threshold of liability, they were responsible for a majority of the multi-million-dollar injury award. But it’s not just the big companies and headline-making damage awards that we should worry about. On a smaller scale, similar things are happening here in Minnesota and the resulting costs are showing up in consumer prices, insurance costs, lack of jobs or housing, and increasing taxes. Liability law in Minnesota says that any party found to be more than 15 percent at fault for an injury can be required to pay up to 100 percent of court awards, if other defendants cannot pay their share. The legal doctrine that allows it is called joint and several liability, but most just call it the “deep pocket rule” because businesses that are drawn into such lawsuits are often left holding the bag – sometimes for four times more than courts found them responsible. Recently, the House of Representatives passed a bill that I co-authored that would change Minnesota’s harsh liability law. This legislation raises the threshold to 50 percent, but continues to allow full apportionment of liability for intentional wrongdoing and environmental damages. Thirty-nine other states have either abolished joint and several liability or have adopted a higher threshold of fault. Joint and several liability is not only expensive for those businesses caught in the liability trap – consumers usually end up paying higher prices. And it doesn’t stop there. Lack of liability reform in states has also been tied to the difficulty of small businesses to access quality health care for employees, job growth and lower business investment, business competitiveness, access to affordable housing, increasing education costs and taxes, a drop in recreational opportunities, and an increase in state government spending. Another disturbing trend that is emerging is that doctors are either leaving or refusing to practice in states with low liability thresholds under state law. Malpractice insurance has become too expensive in states where a doctor or hospital may end up paying billions, despite their actual level of liability. Certainly, if an individual, business or agency of government is found responsible for damages against someone, they should pay their fair share. Our current liability law encourages an injured party to seek out defendants based on their likeliness to be able to pay. It is unfair to them and unfair to you. What’s on your mind? Constituents in the new District 18B in Meeker and Wright counties can contact me at 521 State Office Building, 100 Constitution Ave., St. Paul, MN 55155, call me at 651- 296-4344, or e-mail me at rep.dean.urdahl@house.mn.
Dean Urdahl (R- Grove City) serves House District 18B, which includes a large portion of the Annandale area. He will be in Annandale on Friday, March 14. See the news brief on page 7 for more information.