US Product Liability Debate Goes To Senate

After the House passed a bill in March to curb awards against doctors, drug companies and others, a similar measure has now been proposed by Senate Judiciary Committee chairman Orrin Hatch. However, a Senate Commerce subcommittee on consumer affairs is considering a more moderate bipartisan plan, proposed by Senators Slade Gorton and Jay Rockefeller, to cap punitive damages in all state and federal civil cases to $250,000 or three times economic damages, whichever is greater, and set tougher national standards for punitive damages that would pre-empt state law.

US governors told the panel they support federal law to limit damage awards in product liability cases, but the state legislators said it would bring an unprecedented intrusion into state legal systems. One legislator felt that even the more modest plan would cause confusion and uncertainty in the application of state law, and offer no serious aid to competitiveness.

- A House/Senate compromise bill will restore to the self-employed a 25% health insurance tax deduction for 1994, rising permanently to 30% from this year, in exchange for repeal of a tax break aimed at raising minority ownership of media outlets. It is hoped that the bill can go to President Clinton for signing before the April 17 tax deadline.