NASHVILLE, Tenn. - Governor Bill Haslam is pushing new legislation that he said will make Tennessee more business-friendly. But opponents said it will end up costing taxpayers in the end.
It's called tort reform. State lawmakers heard from both sides of the issue on Wednesday.
It's an effort to change the legal procedures in Tennessee to cut down on frivolous and costly lawsuits and excessive jury awards.
Haslam wants to put a $750,000 cap in legal fees where a victim is compensated for severe pain, emotional distress, and mental anguish. He also wants $500,000 cap on punitive damage cases.
Opponents said it may be good for business, but it's bad for taxpayers.
Former U.S. Sen. Fred Thompson said the legislation is unnecessary and that a jury should decide how much is awarded and not state government.
Thompson, a Tennessee Republican, told the House Judiciary Subcommittee on Wednesday that the proposal is "extremely far-reaching."
Haslam has said the legislation is necessary because it is too attractive for lawyers to sue businesses in Tennessee and that could scare off potential businesses.
However, Thompson cited statistics Wednesday that show the state continues to be a top draw for businesses.
At a Wednesday afternoon press conference, family members of victims of medical negligence spoke against the bill. It would also put limits on nursing home abuse lawsuits.
Governor Haslam disagrees with the criticism, saying his legislation is good for Tennessee businesses.
"This bill does not remove any kind of limits if there is a criminal offense, if there is a criminal offense, there are no caps. This doesn't address that at all," Haslam said.
The purpose of the hearing is to hear all sides of the issue. No official vote would happen until next week.
A new study claims that if Governor Haslam's tort reform law passes, it will bring 122,000 jobs to Tennessee. However, that study was conducted by a group representing businesses who would benefit from Haslam's tort reform proposal.
