Judicial Fairness for Rhode Island Government

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Judicial Fairness for Rhode Island Government
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Reform Target 1 Make the Tort Cap Meaningful

• Part A Make it Applicable to Employees and
  Officials, Not Just Governmental Entity
• Part B Prohibit Suits Against Employees and
  Officials in Personal Capacity Absent Criminal
  Intent

In exchange, raise the tort cap limit from
100,000 to 250,000!
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Proposed New Tort Cap Language
New language in red font

•     9-31-3  Limitation of damages Cities,
  towns, and fire districts.

In any tort action against the State of Rhode
Island or any of its political subdivisions
including but not limited to Cities, Towns or
Fire Districts and/or any employees or officials
of said entities, while performing any act or
omission under the scope of such employment, any
damages recovered therein shall not exceed the
sum of two-hundred and fifty thousand dollars
(250,000) provided, however, that in all
instances in which the State of Rhode Island or
any of its political subdivisions including any
city, town or fire district and/or any employee
or official of said entities was engaged in a
proprietary function in the commission of the
tort, the limitation of damages set forth in this
section shall not apply and provided further,
that any employee or official of said entities
shall not be sued in his or her personal or
individual capacity except upon an allegation of
criminal conduct.
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• Reform Target 2
• Modify The Application of the Joint and Several
  Liability Principle

Joint and Several Liability Now 1 100 Only 8
states still follow the joint and several
liability principle, 3 of which are in New
England (RI, MA, and ME)
The term 'joint tortfeasors' means two (2) or
more persons jointly or severally liable in tort
for the same injury to person or property,
whether or not judgment has been recovered
against all or some of them.
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Hypothetical Example A 10 Million Loss
The Joint and Several Liability Principle
at Work Car driven by just graduated doctor
collides violently at municipal intersection with
underinsured pickup truck owned by small
landscaping company and driven by unlicensed,
drunk employee promising young surgeon is
rendered a quadriplegic. Municipal Engineer and
DPW Director sued for negligent design and
maintenance of intersection landscaping company
sued for negligent maintenance of vehicle that
had bald tires, bad brakes and expired inspection
sticker landscaping company employee sued for
negligent vehicle operation.
Tort Cap Does Not Reduce 9.5 Million in Damages
to 100,000 Because Individual Employees/Officials
(the Municipal Engineer and the DPW Director)
Sued
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War Stories from the Joint and Several Liability
Case Files

• Walker/Gendron/Moffat v. West Warwick (2003)
• 2 young persons died and one injured from
  electrocution while installing vinyl siding on
  home Town issued building permit
  contractor carried no WC
• Johnston v. Narragansett (1999)
• Contractors employee lost limb due to
  electrocution was standing in payloader bucket
  tying off overhead lines while working on a Town
  sewer project
• Dodson v. Smithfield (1995)
• Woman died when house caught on fire caused by
  parked car malfunction in garage alleged Town
  understaffed its Fire Department and improperly
  closed a nearby fire station
• Machowski v. East Providence (1996)
• One brother died and other severely injured when
  their car slammed into a bridge abutment while
  drinking and drag racing at speeds in excess of
  100 mph. Alleged negligent design and
  maintenance of highway (e.g., excessive sand on
  road, faded yellow traffic stripe)

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War Stories from the Joint and Several Liability
Case Files

• Kane v. Narragansett (2002)
• College student died while sleeping smoldering
  cigarette on couch from earlier smoking ignited
  apartment allege response by Town Fire
  Department was too slow and inaccurate fire
  hydrant mapping
• Parker v. Pawtucket (2001)
• Young child killed when apartment burned coat
  caught on fire when placed on stove and then
  tossed into wastebasket where it smoldered.
  Allege negligent inspection of apartment for fire
  code and safety violations
• Marx v. Newport (2004)
• Fairfield University student was killed when, as
  a pedestrian, he was run over by a private bus
  transporting URI students around Newport during a
  Pub Crawl. Student got into an altercation with
  some Pub Crawl participants, and fell underneath
  the rear wheels of the bus. Student also had
  blood alcohol level equivalent to consuming 13
  drinks per hour. City police had closely
  monitored the Pub Crawl, which was not illegal,
  and was not endorsed by the City. Claim alleges
  that City and various officials negligent in not
  better supervising and managing the Pub Crawl.
  Seeking 5 million in damages.

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Hybrid Liability Standardfor Rhode Island
Government

• Add to 10-6-3
• (a) Joint and several liability shall not apply
  to the State or any of its political subdivisions
  unless its proportionate liability is equal to or
  exceeds 25 of the total judgment. If its
  percentage of liability is less than 25, then,
  the governmental entity is only responsible for
  its proportionate share of the judgment.

New language in red font
Part One Proportionate Negligence Only
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Reform Target 3Lower Statutory Interest to
Encourage Prompt Settlement

• High Interest Rate Unrelated to Market Conditions
• Interest Accrual Dates Back to Occurrence rather
  than Date Claim Filed

General Assembly raised interest rate to 12 in
1981.
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Proposed Statutory Interest Language for
Government Liability
New language in red font
Add to 9-21-10. Interest in civil actions
(c) In any civil action in which a verdict is
rendered or a decision made for pecuniary
damages, in whole or in part, against the State
or any of its political subdivisions, there shall
be added by the Clerk of the Court to the amount
of damages, interest at the rate of 2 over the
U.S. Treasury Bill (T-bill) 4-week rate in effect
on the date the complaint was filed with the
Court, per annum thereon, which shall be included
in the judgment entered therein and computed from
the date suit is filed by the claimant or his or
her representative against the State or one of
its political subdivisions. Post judgment
interest shall be calculated at the rate of 2
over the U.S. Treasury Bill (T-bill) 4-week rate
in effect on the date the judgment was entered,
per annum and accrue on both the principal amount
of the judgment and the prejudgment interest
entered thereon. This section shall not apply
until entry of judgment or to any contractual
obligation where interest is already provided.
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Questions?

• Tom Dwyer, Trust President and Executive Director
• tdwyer_at_ritrust.com
• 401.438.6511 ext. 513
• Ian Ridlon, Trust General Counsel and Director of
  Legal Services
• iridlon_at_ritrust.com
• 401.438.6511 ext. 540