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Bill > SF77


IA SF77

A bill for an act relating to tort liability in civil actions involving commercial motor vehicles, including employer liability, noneconomic damages, punitive damages, and exemplary damages.


summary

Introduced
01/22/2025
In Committee
01/22/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to tort liability in actions involving commercial motor vehicles. Under current law, the liability of an employer who is a defendant in a civil action involving a commercial motor vehicle for damages caused by negligence of an employee acting within the scope and course of employment is based on respondeat superior if the employer makes certain stipulations. On motion of an employer, a trial court shall dismiss from the action any claim of the employer’s direct negligence in hiring, training, supervising, or trusting an employee, or other claim of direct negligence on the part of the employer for the employee’s harmful conduct, or other similar claims, if the employer stipulates that at the time of the event that caused the damages that the person whose negligence is the basis of the action was the employer’s employee and the employee was acting within the course and scope of employment with the employer. The bill repeals current law and makes an employer liable for an employee’s negligence and may be held responsible for direct negligence relating to hiring, training, supervising, or trusting an employee, or other claims of direct negligence on the part of the employee’s harmful conduct, subject to certain limitations contained in Code chapter 671A (negligent hiring —— limitations on liability) relating to convictions for public offenses, with certain exceptions. Current law limits the amount of noneconomic damages available against the owner or operator of a commercial motor vehicle for personal injury or death to $5 million regardless of the number of derivative claims, theories of liability, or defendants in the civil action. The bill repeals this cap. Under current law, punitive or exemplary damages may be awarded if, by a preponderance of clear, convincing, and satisfactory evidence, the conduct of the defendant from which the claim arose constituted willful and wanton disregard for the rights or safety of another. In cases involving the operation of a commercial vehicle, the full amount of the award of punitive or exemplary damages shall be paid to the claimant. Under the bill, in cases involving commercial vehicles, the amount of punitive and exemplary damages paid to a claimant shall not exceed 25 percent, with the remainder awarded to the civil reparations trust fund, unless the conduct of the defendant was directed specifically at the claimant, or at the person from which the claimant’s claim is derived. Funds in the civil reparations trust fund are used for purposes of indigent civil litigation programs or insurance assistance programs.

AI Summary

This bill modifies tort liability laws related to commercial motor vehicles, making several key changes to how damages are handled in civil actions. Specifically, the bill removes existing provisions that limit punitive or exemplary damages in commercial vehicle cases, changing how these damages are distributed. Under the new law, in most cases involving commercial vehicles, only 25% of punitive or exemplary damages will be paid directly to the claimant, with the remaining 75% being directed to a civil reparations trust fund. However, if the defendant's conduct was specifically targeted at the claimant or the person from whom the claimant's claim is derived, the full amount of damages can be paid to the claimant. The trust fund's money will be used to support indigent civil litigation programs and insurance assistance programs. The bill also repeals previous sections of law that limited employer liability, potentially making it easier for plaintiffs to hold employers responsible for an employee's negligence in commercial vehicle incidents. This represents a significant shift in how civil actions involving commercial motor vehicles will be processed and compensated in the state.

Committee Categories

Justice

Sponsors (1)

Last Action

Subcommittee: Dickey, Knox, and Schultz. S.J. 136. (on 01/23/2025)

bill text


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