US Bill Plans Lawsuit Reform For Drug Industry

The US House of Representatives has passed all three bills in a legislative package intended to reduce the number of lawsuits nationwide. Included in the package, which now goes to a less hospitable Senate (a majority of whose members are lawyers), is a measure, passed on a voice vote with the support of both parties, that would for the first time make the drug industry immune from punitive damages in suits involving drugs or devices approved by the Food and Drug Administration. However, companies would not have such protection if they gave false information to the agency, and President Clinton opposes all three measures in their current form (Marketletter March 6).

Senator Larry Pressler, head of the Senate Commerce Committee which is probably going to be responsible for at least two of the bills, said he felt that only dealing with product liability and medical malpractice has a chance of passing in the Senate. Democrats are expected to try to defeat the measures with a filibuster; 60 votes are needed for cloture (or ending debate). Sen Pressler feels cloture is possible only on the product liability bill, and added that the Senate is likely to remove the provision making drug companies immune from damage awards if the FDA approved the product.

The last bill approved, the Common Sense Product Liability and Legal Reform Act, sets limits on monetary awards in product liability suits in both state and federal courts, and also sets limits for the first time on punitive damages which could be awarded to a patient for pain and suffering in a medical malpractice suit. Punitive damages would be limited to three times a plaintiff's actual damages or $250,000, whichever is greater.