H.B. 118

1

MEDICAL MALPRACTICE AWARDS
2 ADJUSTMENT
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Margaret Dayton
6 This act modifies provisions relating to medical malpractice actions. The act provides a
7 cap on noneconomic damages equal to the lesser amount between Utah and the federal
8 statutes, and creates a scale for attorney's contingency fees.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 78-14-7.1, as last amended by Chapter 246, Laws of Utah 2001
12 78-14-7.5, as enacted by Chapter 67, Laws of Utah 1985
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 78-14-7.1 is amended to read:
15 78-14-7.1. Limitation of award of noneconomic damages in malpractice actions.
16 (1) In a malpractice action against a health care provider, an injured plaintiff may
17 recover noneconomic losses to compensate for pain, suffering, and inconvenience. The amount
18 of damages awarded for noneconomic loss may not exceed:
19 (a) for a cause of action arising before July 1, 2001, $250,000;
20 (b) for a cause of action arising on or after July 1, 2001 and before July 1, 2002, the
21 limitation is adjusted for inflation to $400,000; [and]
22 (c) for a cause of action arising on or after July 1, 2002, the $400,000 limitation
23 described in Subsection (1)(b) shall be adjusted for inflation as provided in Subsection (2)[.];
24 and
25 (d) for a cause of action arising on or after July 1, 2003, the lesser of:
26 (i) the amount in Subsection (1)(c); or
27 (ii) an amount set by federal law that limits noneconomic damages in malpractice

28 actions.
29 (2) (a) Beginning July 1, 2002 and each July 1 thereafter, the limit for damages under
30 Subsection (1)(c) shall be adjusted for inflation by the state treasurer.
31 (b) By July 15 of each year, the state treasurer shall:
32 (i) certify the inflation-adjusted limit calculated under this Subsection (2); and
33 (ii) inform the Administrative Office of the Courts of the certified limit.
34 (c) The amount resulting from Subsection (2)(a) shall:
35 (i) be rounded to the nearest $10,000; and
36 (ii) apply to a cause of action arising on or after the date the annual adjustment is made.
37 (3) As used in this section, "inflation" means the seasonally adjusted consumer price
38 index for all urban consumers as published by the Bureau of Labor Statistics of the United
39 States Department of Labor.
40 (4) The limit under Subsection (1) does not apply to awards of punitive damages.
41 Section 2. Section 78-14-7.5 is amended to read:
42 78-14-7.5. Limitation on attorney's contingency fee in malpractice action.
43 (1) In any malpractice action against a health care provider as defined in Section
44 78-14-3 , an attorney shall not collect a contingent fee for representing a client seeking damages
45 in connection with or arising out of personal injury or wrongful death caused by the negligence
46 of another which exceeds [33-1/3% of the amount recovered.]:
47 (a) 40% of any amount recovered up to and including $50,000;
48 (b) 33 1/3% of any amount recovered that is over $50,000, up to and including
49 $100,000;
50 (c) 25% of any amount recovered that is over $100,000, up to and including $600,000;
51 and
52 (d) 15% of any amount recovered that is in excess of $600,000.
53 (2) This limitation applies regardless of whether the recovery is by settlement,
54 arbitration, judgment, or whether appeal is involved.

Legislative Review Note
as of 1-22-03 10:28 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel