Panel Passes Liability Bill

The Senate Commerce Committee approved today a uniform national system to deal with consumers injured by products, limiting punitive damages to cases of “flagrant indifference” by the manufacturer.

In addition to a uniform system, the bill, approved 13 to 7 and sent to the Senate for action, provides incentives for quick settlement of product liability cases. The bill was sponsored by two Democrats and two Republicans.

“American companies face 50 different state laws, plus liability costs that are 20 to 50 times higher than their foreign competitors,” co-sponsor Jack Danforth (R-Mo.) said. “And liability cases drag on for years, leaving too much of the money to attorneys instead of to victims.”

“It is time to put fairness and efficiency on the front burner,” he said.