State Beat
Wednesday, May 7th, 2003 Auto Legislation & Regulation Liability PropertyIdaho’s governor, Dirk Kempthorne, recently signed a measure that would have a significant impact on tort reform. The bill, HB 92, which was approved 58-12 by the state’s house of representatives and 27-8 by the senate, takes effect July 1. It will reduce the current legal cap on non-economic damages from $400,000 to $250,000, create a cap on the amount of punitive damages that juries can award, and raise the standard of proof required to impose punitive damages. “Idaho’s new law will reduce the incentives for filing frivolous lawsuits, while protecting people with legitimate claims,” said Bill Gausewitz, assistant vice president, western region, for the American Insurance Association. “Setting a limit on the amount juries can award for punitive damages enables insurers to more accurately predict the cost of legal claims and, therefore, offer more affordable liability insurance coverage to Idaho’s businesses.”
