Tennessee Senate Bill SB2541

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24

Caption

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

Impact

The proposed changes in SB2541 could have far-reaching implications for both claimants and defendants in civil actions within Tennessee. By increasing the damage cap, the bill may enable claimants to receive more substantial financial restitution for their claims. This could potentially lead to more claims being filed, as the increased limit may encourage individuals to seek compensation for damages that previously would not have seemed financially viable to pursue. However, defendants may express concerns over the potential for increased liability and costs in defending against larger claims.

Summary

Senate Bill 2541, introduced by Senator Yarbro, seeks to amend the Tennessee Code Annotated, specifically Title 9, Chapter 8, and Title 29, regarding the limits of damages that can be awarded to claimants. The bill seeks to raise the limit on damages awarded per claimant from $300,000 to $1,250,000. This significant adjustment aims to provide greater compensation for individuals harmed under various circumstances, acknowledging the rising costs associated with damages over recent years.

Contention

There may be notable points of contention surrounding the bill, particularly among various stakeholders, including insurance companies and advocates for tort reform. Proponents of the bill may argue that the current limits are insufficient in addressing the true costs of damages suffered by individuals, particularly those with severe injuries or significant economic losses. On the other hand, critics could voice concerns that increasing damage limits may lead to an uptick in frivolous lawsuits, driving up insurance premiums and overall litigation costs for businesses and individuals alike. The debate around SB2541 is likely to reflect deeper discussions about the balance between providing fair compensation and maintaining a manageable legal environment.