NEW PENNSYLVANIA LAW CONCERNING JOINT AND SEVERAL LIABILITY
By Todd B. Narvol and Stephen E. Geduldig, Thomas, Thomas & Hafer LLP, Harrisburg, PA
Pennsylvania has a new law concerning joint and several liability which will materially affect litigation against trucking companies and other transportation entities who historically have been sued in cases involving marginal, if any, liability simply to protect a plaintiff's right to collect the entire verdict from uninsured or underinsured primary tortfeasors.
On June 28, 2011, Pennsylvania Governor Tom Corbett signed Senate Bill 1131 (Act No. 17) into law. The Act amends Title 42 of the Pennsylvania Judicial Code and significantly changes the doctrine of joint and several liability in the Commonwealth of Pennsylvania. Under the old law, a defendant who was found only 1% causally at fault would be jointly and severally liable, and responsible for payment of the entire verdict. Now, defendants pay their proportionate share of liability unless they are found 60% or more at fault or if certain exceptions apply.
In short, as stated, Act No. 17 will, unless set aside in the future on Constitutional grounds (something which the plaintiff’s bar will be pursuing with vigor), or unless an exception applies, virtually eliminate joint and several liability in the Commonwealth of Pennsylvania with minor and strict exceptions which will seldom apply. Unless the changes to the law are set aside in the future on Constitutional grounds, and unless a narrow exception applies, joint and several liability will only apply in a case where a defendant is found liable and on a legal cause of 60% or more of the total dollar amount of damages.
Effectively, in a case with two defendants, both 50% at fault, joint and several liability does not apply, even though each defendant is equally at fault and equally a legal cause of the injuries. The Act requires that a jury apportion liability to each defendant for a plaintiff’s damages. Any defendant found to be less than 60% at fault will not be legally obligated to pay the full amount of the award unless the plaintiff shows: a) the defendant intentionally injured the plaintiff; b) made an intentional misrepresentation; c) a Dram Shop claim exists (violations of Section 497 of the Liquor Code); or d) a cause of action that arises out of the release or threatened release of a hazardous substance exists. There is energetic and organized objection on the part of the plaintiff’s bar because there are no exceptions for fraud or recklessness/gross negligence.
The Act provides that the changes to joint and several liability apply to all causes of action that accrue on or after the effective date of “this section.” The Act is effective the date the Bill was signed into law which is June 28, 2011. Importantly, the date of filing a lawsuit is not what controls application of the law. Therefore, the changes to joint and several liability apply to causes of action that arise on or after June 28, 2011.
Here is a link to a pdf version of the new joint and several liability law from the Pennsylvania Legislature website:
http://www.uslaw.org/files/public/Pennsylvania.pdf
In conclusion, this new business friendly development in Pennsylvania has significant implications in terms of evaluating risk in your cases in PA as it provides for much more reliable and realistic predictions of exposure.
Please call Steve Geduldig (717) 237-7119 and/or Todd Narvol (717) 237-7133, with any questions.