The American Tort Reform Association (ATRA) has recognized Indiana as a “Tort Reform Trailblazer” in its latest Legislative HeatCheck report, commending the state for enacting two significant legal reforms during this year’s legislative session.
“Indiana lawmakers took important steps toward restoring balance and fairness to its civil justice system this year, and we’re pleased to recognize the state as a ‘Tort Reform Trailblazer,’” said Tiger Joyce, ATRA president. “The common-sense measures enacted on seat belt evidence admissibility and to rein in third-party litigation financing are models for other states to follow.”
House Bill 1090, authored by Republican Rep. Jim Pressel and signed by Gov. Eric Holcomb (R) in March, closes a loophole that previously prevented juries from hearing important evidence. The new law allows juries to consider evidence of non-use or misuse of seat belts when determining damages for plaintiffs aged 15 and older.
“For too long, personal injury lawyers have inflated damages by shielding juries from crucial evidence,” Joyce stated. “This reform ensures juries can properly apportion responsibility and award fair compensation.”
Indiana lawmakers also addressed the unchecked proliferation of third-party litigation funding through House Bill 1160. Republican Rep. Matt Lehman’s bill was also signed by Gov. Holcomb in March and prohibits litigation funders from improperly influencing plaintiffs’ case strategy while requiring disclosure of any foreign financing.
“The litigation funding industry essentially has operated as a ‘Wild West’ with little-to-no transparency or accountability,” Joyce remarked. “HB 1160 will help prevent foreign influence over domestic legal matters and mitigate potential national security risks.”
Excessive tort costs impose an annual $1,205 “tort tax” on each Indiana resident while sapping 76,057 jobs from the state economy.
“This year’s reforms will help to create a more even playing field in the Hoosier State and reduce the overall economic impacts of excessive tort costs,” Joyce added. “We commend Indiana lawmakers and the governor for their strong stance against the trial bar’s agenda and prioritization of affordable access to justice for residents and businesses alike.”
ATRA’s Legislative HeatCheck report evaluates select states' progress — or lack thereof — in enacting meaningful tort reform measures during their most recent legislative sessions.
Indiana’s legislature was named a “Tort Reform Trailblazer” alongside state lawmakers in Alabama and West Virginia. The full Legislative HeatCheck report is available at heatcheck.atra.org.