Iowa Senate Bill SF228

Iowa 2023-2024 Regular Session

• Introduced: 2/7/23
• Engrossed: 2/22/23
• Enrolled: 5/8/23
• Passed: 5/12/23

Caption

A bill for an act relating to tort liability, including employer liability and damages in civil actions involving commercial motor vehicles. (Formerly SSB 1114.) Effective date: 07/01/2023.

Impact

The passage of SF228 is expected to influence state laws surrounding tort actions by establishing clearer standards for employer liability in cases involving commercial vehicle accidents. One of the key provisions caps recoverable noneconomic damages in personal injury cases to five million dollars, which could significantly affect the compensation available to plaintiffs in such cases. The bill stipulates that this cap can be lifted under certain conditions, including instances of gross negligence, driving under the influence, or other serious violations, thereby attempting to balance protection for employers with accountability for severe misconduct.

Summary

Senate File 228 focuses on tort liability related to the operation of commercial motor vehicles. It delineates the conditions under which employers are shielded from civil liability regarding the negligent hiring of employees who operate these vehicles. Specifically, if an employer complies with the given stipulations and shows that the damages were caused by an employee acting within the scope of employment, they can be insulated from claims of negligent hiring. This legislation aims to reduce litigation and associated costs for employers operating commercial motor vehicles, which often face significant liability exposures.

Sentiment

The general sentiment surrounding SF228 appears to be mixed. Proponents argue that the bill is crucial for supporting business operations and cutting down on frivolous lawsuits that could arise from accidents involving commercial vehicles. They contend that this will lead to safer roadway conditions by allowing employers to make hiring decisions without the fear of extensive liability for their employees' actions. Opponents, however, express concern that the legislation undermines the rights of injured parties, potentially limiting their access to just compensation in cases of serious misconduct by commercial drivers.

Contention

Notable points of contention within the discussions around SF228 include the appropriateness of capping noneconomic damages and the implications of shielding employers from claims of negligent hiring. Critics argue that the cap could deter individuals from pursuing legitimate claims, weakening accountability within the commercial trucking industry. Additionally, concerns have emerged regarding the potential for increased risks on the roads if employers feel less incentivized to ensure their drivers are qualified and safe.