Tennessee House Bill HB2604

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 3/5/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 8 and Title 29, relative to damages.

Impact

The implications of HB2604 are significant for various stakeholders within Tennessee's legal and economic landscape. By substantially increasing the damage limits, the bill could provide enhanced compensation for individuals affected by particular injurious occurrences, which might lead to increased accountability for businesses and other entities. However, this change may also result in heightened liability concerns for these entities, potentially influencing their operational practices, insurance premiums, and risk management strategies. Critics argue that such changes could discourage business growth or investment, particularly in sectors that face higher risks of litigation.

Summary

House Bill 2604 seeks to amend the Tennessee Code Annotated, specifically Title 9, Chapter 8 and Title 29, which pertains to damages. The principal change proposed by this bill is the increase of the limit on damages awarded to claimants. The amendment suggests raising the cap from $300,000 per claimant to $1,250,000 per claimant, while also eliminating the previous cap of $1,000,000 per occurrence. This legislative change is aimed at providing greater monetary relief to individuals who successfully pursue claims for damages under certain circumstances.

Contention

The proposal has generated a spectrum of opinions among lawmakers and interest groups. Proponents of HB2604 argue that the increase in damage caps is a necessary reform that aligns the compensation provided to claimants with the realities of medical costs and personal injury consequences that have risen dramatically over time. Conversely, detractors warn that higher damage awards could lead to an uptick in frivolous lawsuits and place an undue burden on businesses, particularly small enterprises that may struggle to absorb such financial liabilities. They stress the need for balance to maintain a fair legal and economic environment in Tennessee.