Bill to Shield Small Business From Product Liability Suits Blocked

Senate Democrats on Thursday blocked legislation that would have shielded small businesses from product liability lawsuits, complaining that Republicans would not let them influence the bill even as GOP leaders were slipping in their own pet provisions.

Majority Leader Trent Lott (R-Miss.) declared the bill dead for the year.

The Democrats “were totally playing games on this,” Lott fumed. “If they want to be on the side of the suing plaintiff lawyers, we’ll take the side of the American people.”

At the heart of the dispute were Democratic efforts to attach to the legislation a measure expanding the rights of patients in managed care companies, a provision Republicans find anathema.

Democrats were divided over the product liability bill itself, which would restrict punitive damages from lawsuits over defective products and had the grudging support of the White House. But they were unanimous in demanding the right to offer amendments.

The Senate voted, 51-47, to cut off debate, nine votes short of the total needed to move to a final vote on passage. All Democrats voted with two Republicans to sustain the filibuster.

Restrictions on product liability lawsuits have become a priority of the business community, which says big punitive damage suits threaten economic growth.

The bill would have capped punitive damages at $250,000, but only for businesses of less than 25 employees or $5 million in annual sales.

It would have also made it more difficult to prevail on product liability suits against any business.