May 3, 2012, Introduced by Senators KAHN, MEEKHOF, MOOLENAAR and SMITH and referred to the Committee on Insurance.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 1483, 2959, 6306, and 6307 (MCL 600.1483,
600.2959, 600.6306, and 600.6307), section 1483 as amended by 1993
PA 78, section 2959 as added and section 6306 as amended by 1995 PA
161, and section 6307 as added by 1986 PA 178, and by adding
section 6306a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1483. (1) In an action for damages alleging medical
malpractice by or against a person or party, the total amount of
damages for noneconomic loss recoverable by all plaintiffs,
resulting from the negligence of all defendants, shall not exceed
$280,000.00 unless, as the result of the negligence of 1 or more of
the defendants, 1 or more of the following exceptions apply as
determined by the court pursuant to section 6304, in which case
damages for noneconomic loss shall not exceed $500,000.00:
(a) The plaintiff is hemiplegic, paraplegic, or quadriplegic
resulting in a total permanent functional loss of 1 or more limbs
caused by 1 or more of the following:
(i) Injury to the brain.
(ii) Injury to the spinal cord.
(b) The plaintiff has permanently impaired cognitive capacity
rendering him or her incapable of making independent, responsible
life decisions and permanently incapable of independently
performing the activities of normal, daily living.
(c) There has been permanent loss of or damage to a
reproductive organ resulting in the inability to procreate.
(2) In awarding damages in an action alleging medical
malpractice, the trier of fact shall itemize damages into damages
for economic loss and damages for noneconomic loss.
(3) As used in this section, "noneconomic loss" means damages
or loss due to pain, suffering, inconvenience, physical impairment,
or physical disfigurement, loss of household or other services,
loss of society and companionship, whether claimed under section
2922 or otherwise, loss of consortium, or other noneconomic loss.
(4)
The state treasurer shall adjust the limitation
limitations on damages for noneconomic loss set forth in subsection
(1)
by an amount amounts determined by the state treasurer at the
end of each calendar year to reflect the cumulative annual
percentage change in the consumer price index. As used in this
subsection, "consumer price index" means the most comprehensive
index of consumer prices available for this state from the bureau
of labor statistics of the United States department of labor.
Sec. 2959. In an action based on tort or another legal theory
seeking damages for personal injury, property damage, or wrongful
death, the court shall reduce the damages by the percentage of
comparative fault of the person upon whose injury or death the
damages are based as provided in section 6306 or 6306a, as
applicable. If that person's percentage of fault is greater than
the aggregate fault of the other person or persons, whether or not
parties to the action, the court shall reduce economic damages by
the percentage of comparative fault of the person upon whose injury
or death the damages are based as provided in section 6306 or
6306a, as applicable, and noneconomic damages shall not be awarded.
Sec. 6306. (1) After a verdict is rendered by a trier of fact
in favor of a plaintiff in a personal injury action other than an
action for medical malpractice, an order of judgment shall be
entered by the court. Subject to section 2959, the order of
judgment shall be entered against each defendant, including a
third-party defendant, in the following order and in the following
judgment amounts:
(a) All past economic damages, less collateral source payments
as provided for in section 6303.
(b) All past noneconomic damages.
(c) All future economic damages, less medical and other health
care
costs, and less collateral source payments determined to be
collectible under section 6303(5), reduced to gross present cash
value.
(d) All future medical and other health care costs reduced to
gross present cash value.
(e) All future noneconomic damages reduced to gross present
cash value.
(f) All taxable and allowable costs, including interest as
permitted by section 6013 or 6455 on the judgment amounts.
(2) As used in this section, "gross present cash value" means
the total amount of future damages reduced to present value at a
rate of 5% per year, compounded annually, for each year in which
those
damages will accrue, as found by the trier of fact as
provided
in under section 6305(1)(b).
(3) If the plaintiff was assigned a percentage of fault under
section 6304, the total judgment amount shall be reduced, subject
to section 2959, by an amount equal to the percentage of
plaintiff's fault. When reducing the judgment amount as provided in
this subsection, the court shall determine the ratio of total past
damages to total future damages and shall allocate the amounts to
be deducted proportionally between the past and future damages.
Sec. 6306a. (1) After a verdict is rendered by a trier of fact
in favor of a plaintiff in a medical malpractice action, an order
of judgment shall be entered by the court. Subject to section 2959,
the order of judgment shall be entered against each defendant,
including a third-party defendant, in the following order and in
the following amounts:
(a) All past economic damages, less collateral source payments
as provided in section 6303.
(b) All past noneconomic damages, reduced subject to the
limitations in section 1483. When reducing past noneconomic damages
as required by section 1483, the court shall calculate the ratio of
past noneconomic damages to future noneconomic damages and shall
allocate the amounts to be deducted proportionally between the past
and future noneconomic damages.
(c) All future economic damages, less medical and other health
care costs, and less collateral source payments determined to be
collectible under section 6303, reduced to gross present cash
value.
(d) All future medical and other health care costs, less
collateral source payments determined to be collectible under
section 6303, reduced to gross present cash value.
(e) All future noneconomic damages reduced to gross present
cash value and reduced subject to the limitations in section 1483.
When reducing future noneconomic damages as required by section
1483, the court shall calculate the ratio of past noneconomic
damages to future noneconomic damages and shall allocate the
amounts to be deducted proportionally between the past and future
noneconomic damages.
(f) All taxable and allowable costs, including interest as
permitted by section 6013 or 6455 on the judgment amounts.
(2) If the plaintiff was assigned a percentage of fault under
section 6304, the total judgment amount as determined under this
section shall be reduced, subject to section 2959, by the
percentage of plaintiff's fault. When reducing a judgment amount
under this subsection, the court shall determine the ratio of total
past damages to total future damages and allocate the amounts to be
deducted proportionally between the past and future damages.
(3) The total judgment amount determined under this section
shall be reduced by the amount of all settlements paid by all joint
tortfeasors, including joint tortfeasors who were not parties to
the action and joint tortfeasors who are not persons described in
section 5838a(1). When reducing a judgment amount under this
subsection, the court shall calculate the ratio of total past
damages to total future damages awarded by the trier of fact and
shall allocate the amounts to be deducted proportionally between
the past and future damages. When reducing a judgment amount under
this subsection, the court shall perform the reduction before
awarding any interest permitted by law, but after making all other
required adjustments to the verdict, including those required by
this section and by section 1483.
(4) As used in this section, "gross present cash value" means
the total amount of future damages reduced to present value at a
rate of 5% per year, compounded annually, for each year in which
the damages will accrue, as found by the trier of fact under
section 6305(1)(b).
Sec. 6307. In an action alleging personal injury, if the
amount of future damages, as described in section 6306(1)(c) and
(e) or 6306a(1)(c) and (e), as applicable, in the judgment exceeds
$250,000.00 gross present cash value, as determined under section
6306(2),
6306 or 6306a, as applicable,
the court shall enter an
order that the defendant or the defendant's liability insurance
carrier shall satisfy that amount of the judgment, less all costs
and attorney fees the plaintiff is obligated to pay, by the
purchase of an annuity contract, if all of the following
requirements are met:
(a)
The purchase price of the annuity contract shall be is
equal to 100% of the future damages subject to this section, less
an amount determined by multiplying the amount of those damages by
a percentage equal to the rate of prejudgment interest as
calculated
under section 6013(5) 6013(8)
or section 6455(2) on the
date the trial was commenced.
(b) The annuity contract is purchased from a life insurer
authorized to issue annuity contracts under the insurance code of
1956,
Act No. 218 of the Public Acts of 1956, being sections
500.100
to 500.8302 of the Michigan Compiled Laws.1956 PA 218, MCL
500.100 to 500.8302.