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The New Age Of Joint And Several Liability In Pennsylvania – Act No. 17

The New Age Of Joint And Several Liability In Pennsylvania – Act No. 17. Scott B. Cooper SchmidtKramer P.C. 209 State Street Harrisburg, Pa. 17110 27 South 34 th Street Camp Hill, Pa. 17011 717-232-6300 scooper@schmidtkramer.com. History of SB 1131 – Act No. 17. Act 57 in 2002

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The New Age Of Joint And Several Liability In Pennsylvania – Act No. 17

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  1. The New Age Of Joint And Several Liability In Pennsylvania – Act No. 17

  2. Scott B. Cooper SchmidtKramer P.C. 209 State Street Harrisburg, Pa. 17110 27 South 34th Street Camp Hill, Pa. 17011 717-232-6300 scooper@schmidtkramer.com

  3. History of SB 1131 – Act No. 17 • Act 57 in 2002 • Act 57 Declared unconstitutional (Deweese v. Weaver) • Passed again in 2006 • Rendell veto in March 2006 • Had passed two times in current form prior to 2011

  4. Perfect Storm of 2011 • Corbett campaigns on it • Part of Mike Turzai’s jihad! • GOP wins House overwhelmingly • GOP controls Senate overwhelmingly • Corbett wins Governor Triple Rs

  5. HB 1, SB 2 and SB 500 • HB 1 - Schroder • SB 2 – Corman • SB 500 - Greenleaf • SB 1131 – originally Greenleaf but then withdrew as sponsor

  6. HB 1 • Introduced in 2011 • Passes House in April 2011 • Referred to Senate Judiciary Committee • Still sitting in Senate Judiciary Committee

  7. SB 2 • Introduced in 2011 • Referred to Senate Judiciary Committee • Hearings Held in Senate Judiciary Committee on SB 2 and SB 500 • Still in Senate Judiciary Committee

  8. SB 500 • Introduced in 2011 • Referred to Senate Judiciary Committee • Hearings in Senate Judiciary • Still in Senate Judiciary Committee

  9. SB 1131 • Introduced in June 2011 • Same as HB 1 and SB 2 EXCEPT for two exceptions for minors and economic damages • Passes Senate Judiciary (15-1) • Amended on Senate Floor to SB 2 and HB 1 language • Passes Senate and House and Signed

  10. Impact of New Law • Risk shifting legislation • Certain plaintiffs will now go uncompensated or at least under-compensated • Certain Defendants will receive a windfall even though found a legal cause of someone’s injuries and losses • Subrogation losses

  11. Key Provisions of New Law • All Joint Tortfeasors are now several and not joint unless exception applies • Five exceptions • Material misrepresentation • Intentional Act • Dram Shop • Illegal Dumping • Defendant 60% or more responsible

  12. “Devil in Details” of Exceptions • Intentional acts usually not insurable • Dram Shop insurance not mandatory • Decrease use of joint tortfeasor releases during suit • Recklessness or gross negligence is not an exception

  13. Applicability • Applies to causes of action which accrue on or after effective date (June 28, 2011) • Up until midnight June 27, 2011 old law applies • At 12:01 AM on June 28, 2011 new law applies • Discovery rule

  14. Possible Arguments • Constitutional • Equal Protection • Unconstitutional cap • Place AG on notice

  15. Practical Case Arguments • Does not apply is Plaintiff is 100% innocent • Can release Defendant pre-action on joint tortfeasor release and still apply joint and several to anyone else.

  16. Thanks for coming! Powerpoint will be posted on SchmidtKramer website at schmidtkramer.com

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