Attorney General No.


Secretary of State No.



LIMITS ON TORT CLAIMS AND ATTORNEY FEES. CONSTITUTIONAL AMENDMENT AND INITIATIVE STATUTE. Limits attorney contingency fees for tort claim recoveries. Reduces some recoveries by net amount of benefits received from "collateral" sources like health insurance. Requires proof beyond reasonable doubt for punitive damages. Limits liability of manufacturers and sellers of products having inherent and recognizable, unsafe aspects. Limits liability of volunteer directors of nonprofit, public service corporations with exceptions. Requires two-thirds vote of Legislature to amend measure; amends Constitution to require same vote to amend certain other laws regulating medical malpractice attorney fees and recoveries. Makes findings and other changes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure contains features which could result in both cost increases and savings to state and local governments. If the measure reduces liability and results in smaller or fewer awards against such entities savings could occur by virtue of reduced court costs, fewer awards and/or a reduction in the amount of such awards. On the other hand, additional costs could be incurred, as for example, when injured parties place greater reliance on governmental programs such as medical or other social service programs. However, based on information available, the fiscal magnitude of these changes and their net fiscal impact cannot be estimated. Therefore, the net fiscal impact on state and local governments is unknown.


Kirk West California Chamber Of Commerce, P.O. Box 1736, Sacramento, California 95808 (916) 444-6670; Gene Livingston Association For California Tort Reform, 1130 K Street, Suite 250, Sacramento, California 95814 (916) 442-1111



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