The Nation : Damage Award Cap Urged

Representatives from the Reagan Administration, the insurance industry and the medical profession told a Senate panel that Congress should restrict civil damage awards. Testifying before the Senate Judiciary Committee, the representatives blamed the civil court system for producing large awards they said have left governments, professionals and businesses with two choices: high-cost insurance or none at all. They said that the system has assigned fault to those with “deep pockets” of money and allowed lawyers to reap huge contingency fees. Proposed legislation for federal courts includes a $100,000 cap on non-economic damages for pain and suffering.