Statutory Caps
Wednesday, August 20th, 2014
Tennessee is one of several states that has adopted legislation capping damages on tort suits. Under the Civil Justice Act of 2011, noneconomic damages are capped at $750,000 and punitive damages at either $500,000 or twice the amount of compensatory damages, whichever is greater. There are some limited exceptions to these caps.
Across the nation, there are numerous pending cases where plaintiffs have challenged the constitutionality of tort reform statutory caps. Legal challenges involve aspects of constitutional law, namely the right to trial by jury, equal protection, due process, and the separation of powers. Tennessee is no exception. The state’s cap statute has been subject to litigation, however, a Tennessee appellate court has yet to render an opinion reaching the merits of the claim. All constitutional challenges to this point have been dismissed for ripeness.
As it stands, 36 states currently have cap statutes, 9 states have no statutory caps, and 5 states have constitutional amendments barring statutory caps. Of the states with cap statutes, 16 hold that statutory caps are constitutional, 8 hold that the caps are unconstitutional, 9 are undecided or unchallenged, and 3 states have mixed results.