Harvey Peeler

Columbia, SC – May 31, 2011 – After extensive debate and a process held up by trial lawyers for months, common sense and South Carolina businesses prevailed on Tuesday as the Senate passed a comprehensive tort reform bill, 39-0. It marks a success for Senate Republicans and South Carolina’s business community, for whom tort reform has been a top priority in recent years. Gov. Nikki Haley has stated that the passage of tort reform is a goal for her administration, recently appearing at a tea party news conference and rallying supporters to get the Senate to pass the bill.

“No other bill this year will improve our state’s business climate like tort reform. This is great news for South Carolina businesses, and that means it’s great news for South Carolina,” Senate Majority Leader Harvey Peeler (R-Cherokee) said. “We’re on the path to new jobs and more private investment thanks to the passage of this bill.”

After passing the House, the bill has been stalled in the Senate for months by opponents trying to run out the clock. Regardless, Peeler and Sen. Larry Martin (R-Pickens), who sponsored similar bills, were able to rally conservatives in the final week of session to see the legislation through.

“It wasn’t easy, but nothing important ever is,” Martin, who led Senate Republican negotiations, said. “Our state’s businesses have been crying out for relief, and today I’m glad to say that we were able to do that.”

“We appreciate the South Carolina Senate taking this important step towards protecting small businesses from frivolous lawsuits,” said JJ Darby, NFIB SC State Director. “Enacting meaningful caps on punitive damages is critical to allowing businesses in this state to grow and create jobs.”

“Nothing comes easy in the South Carolina Senate, and this has proved it. We will compare this with what other states provide, and hope we will have a more fair, more competitive lawsuit system,” said Rick Todd, President & CEO of the SC Trucking Association.

The agreement caps punitive damages that are greater than $500k or three times the compensatory damages awarded. If it is found that the defendant was motivated primarily by financial gain, or the defendant’s actions rise to the level of felony charges, then the award can be increased to the greater of $2 million or four times compensatory damages. If it is proven that the defendant intended to harm the claimant, was convicted of a felony arising out of the same act, or acted under the influence of drugs or alcohol, then the $2 million cap would not apply.

The bill also provides that insurers must disclose limits of individual automobile coverage when a claimant requests the information. This will prevent claimants from having to bring suit in order to receive disclosure of limits.

The bill now returns to the House for concurrence.