by Jon W. Tidwell, Attorney (Memphis Office)
House Bill 5 (TN HB0005), currently under consideration by the Tennessee General Assembly, proposes to double the existing caps on non-economic damages in civil cases involving private litigants. If passed, this would mark the first increase in the statutory caps since the passage of the Tennessee Civil Justice Act in 2011. The proposed legislation is expected to influence case evaluation and resolution strategies across the board, impacting defendants, insurers, and plaintiffs.
Current Law
Under the Tennessee Civil Justice Act, non-economic damages, such as pain and suffering, emotional distress, and loss of consortium, are capped at $750,000 per injured plaintiff. For cases involving “catastrophic” injuries, the cap rises to $1,000,000. Exceptions exist for cases involving intentional harm, intoxication, destruction of evidence, or certain governmental actions, none of which would be affected by the proposed legislation.
Proposed Changes
House Bill 5 seeks to increase the default cap for non-economic damages from $750,000 to $1,500,000 per injured plaintiff. For cases involving catastrophic injuries, the cap would rise from $1,000,000 to $2,000,000. These changes would apply to claims arising after July 1, 2025.
Implications
If enacted, the new caps would significantly enhance potential recoveries in serious injury and wrongful death cases. Defendants and insurers would need to adapt to heightened risk exposure and reevaluate settlement strategies. Higher caps could lead to increased litigation expenses for all parties involved and potentially result in more civil jury trials.
What’s Next?
The legislation has garnered bipartisan support but is likely to see intense lobbying efforts both for and against its passage in the coming months. The attorneys at Spicer Rudstrom, PLLC are closely monitoring this legislation and are available to provide guidance on its potential impact and implications.
For more information or to discuss how these changes could affect your case, contact Spicer Rudstrom, PLLC for updates.