BY: ORMONDE LANDRY PAYNE
Tennessee’s damages caps are on thin ice this winter as the Tennessee Supreme Court is considering if the statute capping non-economic damages is unconstitutional. The Tennessee Civil Justice Act, passed by the state legislature in 2011, includes caps on non-economic and punitive damages. The constitutionality of the damages caps has been routinely challenged by plaintiffs’ attorneys since inception of the Civil Justice Act. The constitutional challenges have gained recent traction, with the Sixth Circuit Court of Appeals opening that the cap on punitive damages was unconstitutional in December 2018, although without a ruling on the issue by the Tennessee Supreme Court. The Sixth Circuit ruling was binding authority in federal courts within the Sixth Circuit but not in Tennessee state courts since it was a federal court decision on a purely state-law issue.
In June 2019, the Tennessee Supreme Court accepted a federal district court’s request to issue an opinion on the constitutionality of the non-economic damages in the case of McClay v. Airport Management Services, LLC following a post-verdict challenge to the caps. Jodi McClay, a California resident, stopped by the Hudson News Shop in the Nashville airport to buy bottled water prior to boarding her flight. When she closed the door to the cooler, a 5-foot long piece of trim that was leaned against the bottom of the cooler fell and crushed her ankle. A jury in the federal district court ruled in Ms. McClay’s favor, awarding her $444,500 in economic damages consisting of medical bills and lost time from work and $930,000 in non-economic damages for continued pain and suffering, loss of work opportunities and diminished quality of life. Defense counsel insisted the federal judge hearing the case apply the $750,000 damages cap in place of the jury’s verdict. Ms. McClay’s attorney argued that the cap is unconstitutional.
The Supreme Court heard oral arguments on Sept. 4, 2019. Some cases heard in May 2019 are still pending ruling, so it could be several months before a ruling is issued in McClay. Statistics raised during the oral argument to the Supreme Court show that 31 states have passed some sort of caps on damages in recent years. Of those, 20 have been upheld as constitutional while 11 have been struck down. The last four cases challenging damages caps found the caps unconstitutional.
We at Adelman Law Firm are monitoring the Supreme Court’s rulings as plaintiffs’ attorneys in Tennessee add “no limits on damages” to their holiday wish lists. It’s safe to say we’re all anxiously awaiting the Court’s decision, which will be binding on all state and federal cases involving Tennessee law.
