Arkansas House Bill HB1822

Arkansas 2023 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23
• Failed: 5/1/23

Caption

To Require A Plaintiff's Verdict In A Tort Action To Be Reduced Due To Payment By A Collateral Source.

Impact

The introduction of HB1822 is poised to modify the existing laws in Arkansas regarding the assessment of damages in tort cases. By adjusting how awards are determined in light of compensatory payments, the bill may enhance fairness in the legal process. It is designed to protect defendants from paying for the same injury or loss twice, thus potentially reducing overall liability exposure for businesses and insurance providers. This could affect insurance rates and legal strategies applied by both plaintiffs and defendants in tort claims.

Summary

House Bill 1822 establishes a legal framework by mandating that verdicts in tort actions are to be reduced by any compensation received from collateral sources. Specifically, the bill stipulates that if a plaintiff in a tort case (which could involve personal injury, property damage, or wrongful death) has received compensation from entities such as insurance companies or other parties, the court must reduce the awarded damages by that amount. This legislative change aims to ensure that plaintiffs do not receive a double recovery for their losses, significantly impacting how damages are calculated in tort cases.

Contention

While proponents of HB1822 argue it promotes fairness and prevents unjust enrichment, critics express concerns that it may undermine plaintiffs' cases by diminishing the total damages they can receive. Opponents of the bill fear that it may disincentivize individuals from pursuing valid claims, particularly if they perceive the financial recovery to be limited by previous payments from collateral sources. Thus, the bill has sparked a larger debate on the implications for access to justice and the balance of interests between plaintiffs and defendants in tort litigation.