General Legal
Tort Reform
Definition
Tort reform refers to legislative and judicial efforts to change the civil justice system to reduce tort litigation and limit damages awards. Common measures include caps on non-economic and punitive damages, restrictions on joint and several liability, modification of the collateral source rule, limits on contingency fees, and statutes of repose. Proponents argue that tort reform reduces frivolous lawsuits and lowers costs, while opponents contend it restricts access to justice and deprives injured parties of fair compensation.
Example
A state passes a law capping non-economic damages in medical malpractice cases at $250,000. This is a common tort reform measure aimed at reducing malpractice insurance costs.