The Fair Share Act on the Verge of Becoming Law? Part I
On April 12, 2011, the Pennsylvania House of Representatives passed House Bill 1 (“HB 1”), the most recent edition of the long-debated Fair Share Act (the “Act”). HB 1 proposes a dramatic transformation of the current system of liability in Pennsylvania. Meanwhile, the Pennsylvania Senate has advanced competing proposal, Senate Bill 500 (“SB 500”), which offers much more limited reforms. HB 1 and SB 500 presently await consideration in the Senate Judiciary Committee. If HB 1 ultimately passes the Senate, it will move to the desk of Governor Corbett, who is expected to sign it into law.
HB 1 would effectively end joint and several liability in Pennsylvania. Under current law, if multiple defendants are found liable for a plaintiff’s injuries, damages are assessed to each defendant according to their percentage of fault. If a liable defendant fails to pay their share of the award, the other defendant(s) is required to pay the unsatisfied portion to the plaintiff. The overpaying defendant’s only recourse is to seek compensation from the non-paying defendant. If the non-paying defendant is unable or unwilling to offer such compensation, the overpaying defendant is simply left “holding the bag.” Thus, a defendant may be forced to pay 100% of an award for which they were assessed only minimal liability by a jury.
Under HB 1, defendants with less than 60% of the assessed liability will only have to pay for their percentage of the award; they will no longer be compelled to pay 100% of the award and then seek compensation from non-paying defendants. Only defendants found to be 60% or more liable will continue to be responsible for 100% of the award in the event of a non-paying defendant.
By contrast, SB 500 abolishes joint and several liability only for those defendants whose percentage share of the award is less than that percentage of fault attributed to the plaintiff.
Check back next week for a summary of the most prominent arguments for and against passage of the Fair Share Act.
