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Hours of debate in committee and in Arkansas’ legislative chambers didn’t sway enough lawmakers to vote against a bill that would decrease the amount plaintiffs could receive in personal injury cases.
House Bill 1204, sponsored by Rep. Jon Eubanks, R-Paris, heads to Gov. Sarah Huckabee Sanders’ desk after a close 18-17 Senate vote Thursday.
Proposed tort reform advances out of Arkansas legislative committee
Though the bill doesn’t state it, lawmakers have referred to it as “tort reform.” It passed the House last week 71-18. Six representatives did not vote and five voted present.
Bill co-sponsor Sen. Missy Irvin, R-Mountain View, presented the proposal Thursday to her fellow lawmakers, stating it was “based on balance and fairness,” as it would recognize actual bills paid, rather than the full cost of medical treatments.
A bipartisan group of seven senators spoke against the bill on the floor Thursday, while one spoke in favor of it. The Republican lawmakers who opposed the bill said that while they are traditionally supportive of similar measures amending tort law, HB 1204 goes a step too far.
“I’ve had a lot of calls from constituents on this, and not a single constituent has called me and said, ‘Hey, I think it’s a good idea that we take money out of the pockets of the insured parties and put it in the insurance company’s pockets,’ because that’s exactly what this bill does,” said Sen. Clint Penzo, a Springdale Republican.
Penzo’s view represents that of many opponents: the bill would help insurance companies and hurt Arkansans who pay their monthly premiums. But supporters of the legislation have said it would level the playing field and ensure that damages awarded to an injured person do not exceed what they actually paid for medical treatment and procedures.
Sen. Jonathan Dismang, R-Searcy, was the sole lawmaker to speak in favor of the bill Thursday and said the discussion had complicated a simple bill. Dismang offered an example of a used car sale to help lawmakers understand what he said was the purpose of the bill.
If a person is selling a car for $100, and someone buys it for $60, the car is worth $60 if something goes wrong and is returned, Dismang said. In this example, the purchaser would not be reimbursed the car’s listed price of $100, he said.
Sen. Clarke Tucker, a Little Rock Democrat and practicing attorney, said people currently do not profit by getting injured through the existing “made whole doctrine.” But because attorneys fees are a nonrecoverable cost, most people are not “made whole,” he said.
Tucker also argued that supporters of the bill who believe insurance rates will go down after its passage are wrong, as seen in other states like Texas, he said.
“If you think that costs are going to go down — it’s like spitting in the ocean,” Tucker said. “What we’re counting on in this bill is hope.”
Republican Sens. Gary Stubblefield of Branch, John Payton of Wilburn, Alan Clark of Lonsdale and Joshua Bryant of Rogers also spoke against the bill. Sen. Jamie Scott, D-North Little Rock, rounded out those who voiced opposition.
“It tells our most vulnerable that their pain is just a cost of doing business, and that is not the Arkansas I believe in and the justice system I swore to uphold,” Scott said.
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