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Sunday, March 19, 2017

2017 SJR 23: A new miscellaneous section

What Senate Joint Resolution 23 proposes

Learned a new word today: EleemosynarySenate Joint Resolution No. 23 is proposed by Senator Girod.  This resolution proposes to amend the Oregon State Constitution by adding a new section to Article XV (Miscellaneous).
This Resolution proposes to cap non-monetary awards in judgments against non-profit corporations at $500,000.  A nonprofit organization is one that is so classified by Federal Tax code and pays no income taxes on revenues.

My view

I have hesitations about this proposal for a couple of reasons.  First, I am not sure why this is coming up as a topic of discussion.  In the news lately has been allegations against the Catholic church.  Also in the news have been the Boy Scouts of America.  Many health care providers are non-profits and I would imagine that any wrongful death suit brought against a hospital would hit this limit pretty regularly.
Second, there is no inflation adjustment.  These kinds of hard and final limits are though to be useful to drive home a point.  But in reality to make things work, you need to provide cost of living adjustments (COLA).  All dollar figures in legislation start to look wrong or bad after 10 years without having some kind of COLA mechanism.
I don't know what the supporting arguments for this proposal are.  I'd like to support anything that might reduce the tendency of frivolous or nuisance lawsuits as a negotiation tactic.  But I am not convinced this proposal is yet correct or necessary.

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