Lawmakers suggest raising limit on awards in suits

Monday, May 22, 2000 | 10:53 a.m.

CARSON CITY -- A legislative committee, despite the misgivings of some members, is recommending an increase in awards given in lawsuits against government entities.

But the committee wants to stop large judgments that sometimes reach as high as $500,000.

Bill Bradley of the Nevada Trial Lawyers Association called the recommendation "a step backward" for people with multiple claims of being injured by government negligence."

"But supporters say the approved plan will help victims but not break the financial backs of government," Bradley said.

And while the cities, counties and state won the opening round, all sides agreed the battle will continue in the 2001 Legislature.

The legislative committee, headed by Assemblyman Bernie Anderson, D-Sparks, unanimously voted Friday to raise the present $50,000 tort limit to $75,000 for a single incident. It's been 20 years since the $50,000 was set.

Trial lawyers sought an increase to $125,000.

But more significantly, the committee agreed that no individual should be able to collect more than $150,000 from a single incident. There have been cases in which governments have been ordered to pay hundreds of thousands of dollars by a victim who stacked the $50,000 claims one on top of the other.

Anderson said he was "not too happy" about restricting the top amount an individual could receive, noting "the trade-off is too great." But he voted for the plan to get it moving forward.

The Legislature has never passed a law allowing "stacking" of claims, but decisions by Nevada courts permit the practice.

Assembly Democrats Genie Ohrenschall and Jerry Claborn, both of Las Vegas, also voted for the plan but served notice they may not support it in the Legislature because of the restriction on the total amount a person may get.

"The king and the state frequently do something wrong," Ohrenschall said. "The victim should be compensated. We should not be cutting back."

But others said there must be a balance between the victim and the taxpayers.

Wayne Carlson, executive director of the Nevada Public Agency Insurance Pool, said one small city with 1,100 residents was sued for 100 claims at $50,000 a claim. He said if it had lost in court, it would have been hit with a $5 million judgment, to be paid out of the city's budget of slightly more than $3 million a year, he said. The city won its case.

The committee agreed with a recommendation to create a new fund to provide up to $250,000 to victims who suffer extensive injuries. Such injuries must result "in paraplegia, quadriplegia, a persistive vegetative state, permanent total physical incapacitation from any gainful employment or death."

Contributions from the state and counties would pour about $2.2 million a year into the fund, said Bill Isaeff, assistant to the city manager of Sparks and author of the recommendation.

The counties would pay their share by setting aside one-quarter of a cent from the property tax rate, which now goes to pay the medical costs of indigents injured on the highway.

Sen. Maurice Washington, R-Sparks, said it would be up to the taxation and budget committees of the 2001 Legislature to find the money for the state's share of this program.

Cy Ryan covers state government for the Sun. He can be reached at (775) 687-5032.