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PA Chamber applauds House passage of Fair Share Act legislation

April 12, 2011

HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry lauded passage of legislation (H.B. 1) that would restore fairness to financial liability in Pennsylvania.

“We congratulate those members of the House who stood with job creators, doctors, hospitals, local governments, taxpayers and consumers, as opposed to siding with personal injury lawyers,“ PA Chamber Vice President Gene Barr said.

The proposed Fair Share Act would repeal the unfair legal doctrine of joint and several liability, in which defendants found only minimally at fault can be held responsible for 100 percent of damages.

“The long-standing legal rule of joint and several has been grossly distorted by greed and in many cases, has become nothing more than a search by personal injury lawyers for defendants whose only real reason for being named in a lawsuit is their ability to pay,“ Barr said. “Often this is done to force an out-of-court settlement, knowing that the risk of being held fully responsible for a large financial judgment despite being only minimally at fault – if at fault at all – leaves defendants with no other option.“

Barr said H.B. 1 is a balanced bill that simply brings Pennsylvania into the mainstream with how it handles financial liability. More than 40 states have reformed joint and several liability, or never had a joint and several rule on the books.

“House Bill one is a reasonable reform measure in that it includes important exceptions if a defendant is found liable for intentional fraud or tort; held liable for environmental hazards; held civilly liable as a result of drunk driving; or held more than sixty percent liable for the injury or loss,“ he stressed.

Barr said credit is due to lawmakers who not only supported the bill on final passage but voted against amendments that would have weakened its provisions, rendering the reform meaningless. He expressed disappointment with lawmakers who previously backed the legislation, only to vote no for purely political reasons.

“Pennsylvanians are fully behind this commonsense reform,“ he reminded, pointing to a recent public opinion survey conducted by Susquehanna Polling and Research in which 82 percent of respondents indicated support for the Fair Share Act.

Additionally, support remains strong (76 percent) for having individuals and businesses pay for damages proportionate to their level of blame, even if it means some plaintiffs will not be able to recover 100 percent of damages.

Barr said the survey shows that citizens reject the baseless arguments by opponents of lawsuit abuse reform that H.B. 1 would cost state taxpayers money in the form of increased Medicaid costs; would hurt small business; and would lead to uncompensated victims.

“Opponents haven't been able to produce any verifiable data – none – to validate these claims,“ Barr said. “In trying to stop a bill that previously passed in two legislative sessions in a bipartisan manner, the opposition is standing apart from the mainstream on this issue. They are working against job growth and access to health care in the process.“

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.

Copyright © 2006 Pennsylvania Chamber of Business and Industry