Basic Philosophy
To be competitive Pennsylvania must enact reforms to make the state’s legal system fair and predictable. The following are steps that should be taken to reform the legal system:
Eliminate Joint and Several Liability. The concept of “joint and several liability” penalizes business which may have a very small responsibility for liability in a particular civil case. Pennsylvania must enact legislation similar to the 2006 Fair Share Act (vetoed by Governor Rendell) that will limit the liability of a business defendant in a lawsuit for its minor percentage share of fault unless its liability exceeds 60%, in which event it could be held liable for the full award under joint and several liability.
Enact Comprehensive Product Liability Reform. Defending product liability cases can be burdensome and expensive to a business even though it has a minor and remote connection to a defective product. The concept of “certificate of merit” should be introduced to the area of product liability lawsuits as it has been successfully implemented in the medical malpractice area. Frivolous product liability cases would be reduced if a plaintiff were required by statute to obtain and certify to the court a professional opinion from a qualified expert that a product is defective. This certification would be presented at the outset of the product liability action and would be a precondition to instituting the suit.
Adopt legislation that will place at least a 15-year time limit (Statute of Repose) on product liability lawsuits which are brought many years after the manufacture of the defective product. The absence of such protection leads to difficulties in defense and higher insurance costs. Appropriate protections should be included in such legislation to exempt from the limitation those actions alleging illnesses, the evidence of which did not manifest itself within the statutory period of repose.
Adopt legislation to protect innocent vendors and those in the chain of distribution who are named defendants in product liability cases for the reason that they passed along a defective product in the stream of commerce. Distributors and retailers of a defective product should not be liable for damages if they do not alter the product prior to its sale.
Provide legislative protection to businesses involved in food production, distribution and sale from frivolous lawsuits brought to seek redress for health conditions such as obesity and related physical problems. Such legislation should recognize the need to balance the responsibility of business for selling products deemed to be harmful against the personal responsibility of individuals to practice healthy eating habits and lifestyles.
Restricted Venue in Suits Against Businesses. The choice of venue in a lawsuit brought against a business should be based upon standards that recognize the requirement for a real and substantial connection of the defendant to the legal forum selected by the plaintiff. Legislation should prohibit the filing of cases in jurisdictions based upon the potential of a high award of damages where the venue selected has little or no relationship to the defendant or the act giving rise to the cause of action.
Limit Non-Economic Damages in Lawsuits. Pennsylvania is in a small minority of states that do not allow the implementation of limits, guidelines or caps to control unreasonable jury awards. Amendments to the Pennsylvania Constitution should be considered which will allow the General Assembly to adopt legislation to establish reasonable controls on non-economic damages such as pain and suffering, emotional distress, loss of consortium or companionship and other similar intangible injuries.
Establish Business-Friendly Land Use and Environmental Regulations. Pennsylvania land use regulations, including the legislative and regulatory provisions administered by the Pennsylvania Department of Environmental Protection, have created an atmosphere that does not encourage the creation of new business in Pennsylvania or foster an atmosphere that promotes the welfare of the business community and its employees. Legislative reform is required to moderate the impact of harsh and restrictive land use, zoning and environmental regulations on the business community, including the adverse impact of such
regulation on affordable housing for the workforce.