The Journal of the Arkansas Medical Society Med Journal April 2019 Final 2 | Page 4

COMMENTARY Tort Reform: an After-action Review and a Look Forward DARRELL R. OVER, MD, MSC, FAAFP ASSOCIATE PROFESSOR, UAMS (SOUTH CENTRAL), PINE BLUFF, AR T he U.S. Military employs an analytical method called an after-action re- view (AAR). This structured process evalu- ates what happened, why it happened, and how it could have been done better. This process enables a clear comparison of intended-versus-actual results achieved and helps capture the lessons learned from successes and failures, with the goal of im- proving future performance. Considering the recent effort by the Arkansas Medical Society to advance meaningful tort reform, and the ultimate failure of the measure, it is perhaps worthwhile to conduct an AAR on our process to guide future efforts. Let’s first review what Issue 1 was intended to accomplish and the current state and national tort landscape. Issue 1 would have set caps for non-economic damages to $500,000 and on punitive damages to $500,000, or three times the compensatory dam- ages (whichever is higher). It would have limited the contingency fees of lawyers to one-third of the net amount recovered. The amendment also would have decreased the supermajority vote re- quirement in the Legislature to amend or repeal Arkansas Supreme Court rules regarding pleading, practice, or procedure from 66.67% to 60% and would have required a 66.67% supermajority vote for the Legislature to make certain changes to the limits in the amendment. Currently, 11 states have caps on non-econom- ic damages for general tort or personal injury cases; 20 states have provisions capping non-economic damages specifically in cases of medical malprac- tice but not for personal injury cases; and 19 states have no caps on non-economic damages (as of 2017). Among the 19 states with no non-economic damage caps, five states (including Arkansas) have constitutional provisions prohibiting caps at least in certain areas. Regarding limits on lawyer contin- gency fees, 21 states have no limitations on con- tingency fees; 11 states have a general cap on con- tingency fees; 16 states have a cap on contingency fees specifically for medical malpractice cases; and, two states have both general restrictions and sepa- rate caps specifically for medical malpractice cases. What happened: The Arkansas Constitu- tion allows the Legislature to propose up to three constitutional amendments in an election cycle. In Sept. 2018, Pulaski County Circuit Judge Mackie Pierce declared Issue 1 unconstitutional in that it rolled up multiple issues in a single proposal: limiting non-economic caps; limiting economic caps; limit- ing attorney’s fees; and, in several ways, transfer- ring court rule-making authority from the Arkansas Supreme Court to the Legislature. Citing the Arkansas Constitution, Judge Pierce stated that proposed constitutional amendments “shall be so submitted as to enable the electors to vote on each amendment separately.” Judge Pierce stated that the four provisions of Issue 1 were not “reasonably germane” to each other and that the “general subject” of the amendment was unclear. He ruled the reduction in attorney’s fees an infringe- ment of the right to freely enter contracts and that modifying the voting threshold required in any legis- lative process from two-thirds to three-fifths of both houses was an internal legislative modification and outside judicial purview. He further stated that a cap on non-economic and punitive damages infringes on the rights of citizens and litigants to be compensated fully. In October, just days before early voting started, the Arkansas Supreme Court voted 6-1 upholding Judge Pierce’s ruling and ordered election officials not to count votes cast on Issue 1. Why it happened: Having a means to rein in the Supreme Court, although a much-need- ed reform, was probably an overreach. Both Judge Pierce and the Supreme Court cited lack of a gen- eral subject for the amendment and that the four 220 • THE JOURNAL OF THE ARKANSAS MEDICAL SOCIETY provisions were not “reasonably germane” to each other (although this terminology does not appear in the Constitution). However, the truly weak link was the attempt to give the Legislature control over Supreme Court rules. A case for linkage could be made for the other three provisions and the issue of Legislature control should have been a separate amendment proposal. However, even before a court challenge was raised for Issue 1, it suffered from “image prob- lems.” Religious and pro-life groups such as the Family Council and Arkansas Right to Life vigorously opposed the amendment saying that limiting dam- ages in lawsuits sets an arbitrary value on human life, conflicts with biblical principles of justice and helping the poor, and is contrary to anti-abortion be- liefs. These groups organized meetings with church leaders to call for the measure’s rejection and gar- nered support from pastors to exhort their congrega- tions to oppose the amendment. A Talk Business & Politics Hendrix College survey of 1,701 statewide likely voters conducted in Sept. 2018 (with a margin of error of +/- 2.4) found that voters were already leaning against the measure. How could it have been better done: We must be focused. The court decisions criticized the lack of a central theme or “general subject.” The AMS needs to advocate for tort reform – period. We certainly should be able to draft an amendment on this “general subject,” the provisions of which are “reasonably germane” to each other. Also we need to do a much better job of stating why tort reform is good, not only for us but for our patients. We must be proactive in educating Arkansans about tort reform, but we have to emphasize why it is good for them also. Our adversaries tainted our efforts early as “putting a price on life,” and we must prepare to vig- orously counter this. They certainly will try this again. It is possible to achieve reasonable tort reform. Other states have done so and we need to analyze how they were successful. VOLUME 115