Iowa Senate Bill SSB1114

Iowa 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 1/31/23

Caption

A bill for an act relating to tort liability, including employer liability and noneconomic damages in civil actions involving commercial motor vehicles, and punitive or exemplary damages in civil actions generally.(See SF 228.)

Impact

One of the significant changes introduced by SSB1114 is the limitation it imposes on noneconomic damages that could be recovered from the owner or operator of a commercial vehicle. The bill caps these damages at $1 million for personal injury or death, irrespective of the number of claims or defendants involved in the civil action. The legislation further mandates that this limit will be adjusted for inflation every two years, which highlights an effort to account for economic changes and maintain fairness in the legal process going forward.

Summary

Senate Study Bill 1114 aims to amend the existing framework surrounding tort liability in Iowa, particularly focusing on employer liability related to damages arising from the operation of commercial motor vehicles. The bill stipulates that in cases where an employer is deemed a defendant due to an employee's negligence while operating a commercial vehicle, the employer's liability would rely solely on the principle of respondeat superior, provided certain conditions are met. This would effectively limit claims against the employer regarding direct negligence in areas such as hiring, training, or supervising the employee in question.

Contention

The bill has spurred discussions surrounding the balance between allowing businesses protection from excessive lawsuits and ensuring that victims of negligence still receive adequate compensation for their injuries. Critics argue that by limiting employer responsibility and capping noneconomic damages, the bill may undermine the rights of individuals affected by accidents caused by the negligence of commercial operators. There are concerns that this could lead to less accountability for employers, particularly in cases of serious injuries or wrongful deaths caused by their employees while operating commercial vehicles.