Tennessee Caps Medical Malpractice Damages

Insurers in Tennessee will payout fewer damages in medical malpractice cases after a new cap on damages took effect earlier this month. The new law also states insurers may no longer be sued under the state’s consumer protection law.

Tennessee lawmakers earlier this year enacted the “Tennessee Civil Justice Actor of 2011,” which was a centerpiece of Governor Bill Haslam’s agenda to crackdown on civil lawsuits.

The new law places a cap of $750,000 on non-economic damages such as pain and emotional suffering and a $500,000 cap on punitive damages in medical malpractice and personal injury cases. The law also places a $1 million cap on catastrophic cases which would apply in instances where a person became paralyzed, burned, blinded, suffered an amputation or otherwise died leaving behind minor children.

The law also excludes insurers from paying punitive damages in product liability actions unless the seller had substantial control over the design and manufacturing of the product or had actual knowledge of the defect in the product at the time it was sold.

Another law change removes insurers from the provisions of the state’s consumer protection act.

The Tennessee Supreme Court in a 1998 case, Myint. v Allstate Insurance Co., ruled that insurers could be sued under the state’s consumer protection act. Prior to that case, insurers could only be sued under the state’s insurance code. The new law in effect reverses Myiant v. Allstate and once again places lawsuits against insurers under the state’s insurance laws.

Latest Comments

• October 19, 2011 at 10:46 am

  Razia says:

  I am surprised that they put caps in. Tennessee does NOT have a medical malpractice insurance crises at all. In fact of all of the states they have some of the lowest rates in... read more
• October 18, 2011 at 2:20 pm

  HeyManIveHadEnough says:

  It is legislation like this that only hurts the "average joe". Insurance premiums will NEVER come down without a competitive marketplace and both major parties are firmly in t... read more
• October 17, 2011 at 2:58 pm

  The Other Point of View says:

  LOL. Don't hold your breath. These so called tort-reform laws do nothing but benefit the insurance companies with no corresponding benefit to consumers in the form of lower pr... read more