Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540 (907) 465-3804

Tort Reform Heads To House Finance

For Immediate Release: February 27, 1997 Contact: Rep. Brian Porter (907) 465-4930

JUNEAU - Tort Reform legislation Thursday passed the House Judiciary Committee. House Bill 58, sponsored by House Majority Leader Brian Porter, specifically calls for a graduating system for predictable punitive damages and limiting frivolous lawsuits.

"HB 58 will create a more equitable distribution of the cost and risk of injury in civil lawsuits. This act seeks to reduce costs associated with the current civil legal system, while ensuring that adequate and appropriate compensation for persons injured through the fault of others is available," said Porter.

Porter said many large and small businesses and individual professionals are discouraged from doing business in Alaska because of the high cost of liability insurance.

"The incentives to create the most litigious society on earth are firmly in place. As a consequence, the cost of liability insurance has become unaffordable to many. In some areas of this state, there are no domestic insurance companies which will write a liability insurance policy for any price," said Porter.

"The graduating system of punitive damages, other limitations, and disincentives placed on frivolous lawsuits which are called for under HB 58, are the kinds of things necessary to bring the cost of litigation and insurance down, and provide better opportunities for business and customers," said Rep. Porter.

The Alaska State Chamber, in a March 1996 article in Alaska Business Monthly, noted litigation disrupts commerce at every level, and legal expenses constitute a large and growing cost of doing business in Alaska. Threatened or actual litigation and the associated defense costs jeopardize the existence of small and medium sized businesses.

"Alaska finds itself and its private sector competing with other nations for economic opportunity. We must attempt to reduce litigation if we are to really encourage investment in Alaska," said Porter.

Tort reform is part of the Republican-led Majorities Commitment to Alaska.

Note: For a detailed sectional analysis of the bill call Representative Brian Porter's Office.

Broadcast Note: An audio actuality is available by calling 1-800-478-6540.

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