OKLAHOMA CITY, Okla., April 5 – The American Insurance Association (AIA) expressed dismay at the defeat of a tort reform proposal.

According to AIA, HB 3120 would have limited contingency fees for lawyers, would have capped non-economic damages at $300,000, and would have capped hospital liabilities at $500,000, except in lawsuits alleging wrongful deaths, gross negligence or willful or wanton misconduct.

The bill was defeated in the Senate Judiciary Committee by a vote of 7-4.

Calling the issue, one of the mostly contested issues in the Oklahoma Legislature for the past several years, John Marlow, AIA assistant vice president, Southwest Region, stated, In a classic battle between the Republicans and Democrats, the trial bar (Democrats) was once again successful in killing meaningful tort reform in Oklahoma. This is a real blow to businesses and the overall economy of Oklahoma and allows the trial bar to continue to exploit frivolous lawsuits in the state.

However, according to the website of the law firm Carr & Carr, which has offices in Oklahoma and Arkansas, a primary goal of tort reform is to shift the cost of paying for the consequences of defective products, careless practices and shortsighted management policies away from large corporations and insurance companies. To the extent that such an effort is successful, these costs will largely fall on middle class families who will pay higher taxes to provide care for those who are injured by careless conduct, environmental pollutants and defective products.