Trial Lawyers' Greed Wins the Day

Once again the trial lawyers' greed has halted their legislative ambition.  Today in the New Jersey Senate Commerce Committee the chairwoman, Senator Nia Gill (D-Essex), held a bill that would allow bad faith suits against automobile insurers because the plaintiffs' bar and the State Bar Association would not accept a version that did not include punitive damages (in this case, up to three times the amount of the insured's coverage).

The bill, S-132, would have established a private right of action for insured automobile policy holders who allege unfair claims settlement practices against their insurance carrier arising from a claim under their uninsured and underinsured motorist coverage.

Senator Gerald Cardinale (R-Bergen) had sought amendments to require "clear and convincing evidence of malice or wanton disregard" for the insured's rights to prove bad faith and he had sought to limit attorney's fees only when the plaintiff was successful in proving bad faith.  In addition, he sought to strike punitive damages.  Senator Nicholas Scutari, the bill's sponsor, worked hard with Cardinale to make a bill that could pass the committee.

The State Bar Association and the NJ Association for Justice would not agree to eliminating punitive damages and withdrew support for the bill.

In 2008 the plaintiffs' bar would not accept any limit on emotional damages in wrongful death suits and, when their bill allowing unlimited emotional damages passed the legislature, Governor Corzine pocket vetoed the bill.  Today, they could have had a bad faith bill without punitive damages, and they instead chose nothing.

But it's not about the money, right?