Utah high court upholds liability damage cap

AMA officials hope the ruling will be another action that encourages lawmakers nationwide to pass meaningful tort reform.

By Tanya Albert, AMNews staff. Dec. 6, 2004.

A Utah law that caps the noneconomic damages that can be awarded in medical liability lawsuits will remain in place, the Utah Supreme Court ruled in November.

In the nearly 20 years since the law was passed, this was the first time the Utah Supreme Court had been asked to rule on the cap's constitutionality. In its 3-2 decision, the court said the Legislature had put a reasonable limit on pain and suffering awards without arbitrarily restricting what plaintiffs can recover.

Physicians and other proponents of such caps said the ruling would help keep insurance rates affordable for doctors and help ensure that they would continue to practice in Utah.

"We wanted to make sure the cap stayed intact," said Mark Fotheringham, spokesman for the Utah Medical Assn., which filed a friend-of-the court brief in the case. "We believe it has helped keep our medical liability insurance rates low."

The state has not seen physicians leave, retire early or discontinue high-risk procedures at the high rates that some states have due to rising medical liability insurance rates, Fotheringham said.

"We've seen some people move here because the rates are lower than elsewhere," he said.

AMA President John C. Nelson, MD, MPH, said he hoped this latest ruling in favor of caps combined with recent passage of several tort reform ballot initiatives sends a signal to lawmakers at the state and federal levels.

"We hope they will pass meaningful reforms, something that will keep access to care for patients," he said.