The Maryland cap on noneconomic damages in civil lawsuits is once again under scrutiny as Delegate Natalie Ziegler, D-Howard, reintroduces a bill aimed at removing it. This marks the third year Ziegler has sponsored the legislation, reigniting a contentious debate between personal injury victims advocating for justice and business interests concerned about economic repercussions.
The current cap, set at $950,000 for personal injury and wrongful death claims, increases annually by $15,000. Critics, including Ziegler, argue that the cap is arbitrary, outdated, and discriminatory, particularly against marginalized groups like women, people of color, and individuals with disabilities.
“It incentivizes the wrong things,” said Ziegler. “It’s a bad law.”
Business Concerns Over Insurance Costs
Opponents of the bill, including the Maryland Chamber of Commerce and the Maryland Motor Truck Association, warn that eliminating the cap could drive up insurance costs for individuals and businesses. Louis Campion, CEO of the Maryland Motor Truck Association, highlighted the rise of “nuclear verdicts” in trucking cases across the country, which have made truck insurance increasingly scarce and expensive.
Similarly, Nancy Egan from the Maryland Alliance for Fair Liability Laws pointed to studies indicating that raising the cap to $1.75 million could increase commercial auto insurance costs by 23-30% and personal auto insurance by 14-19%.
“This would be a big increase,” Egan said, emphasizing the potential burden on Maryland’s business community.
A National Perspective
Maryland is one of the few states with a cap on noneconomic damages. Nearly 40 states, including Virginia, Texas, and Florida, have no such restrictions. Proponents of the repeal argue that these states are not facing economic crises as a result.
“If businesses were so concerned about a cap, we wouldn’t be losing businesses to Virginia,” Ziegler asserted.
Some states, including Florida and Illinois, have seen their caps overturned by courts citing constitutional violations of the separation of powers.
Understanding Noneconomic Damages
Noneconomic damages, such as pain and suffering or emotional distress, are more subjective than economic damages like lost wages. Calculations often rely on a multiplier of economic damages or a per-day value for suffering.
Michael Hayes, a University of Baltimore law professor, noted that juries often lack clear guidance on valuing noneconomic damages, leading to decisions based on sympathy or guesswork.
What’s Next for the Bill?
While the state Senate passed an amended version of the bill last year, it stalled in the House of Delegates. This year, no companion bill has yet been introduced in the Senate. Without bipartisan cooperation, the fate of Ziegler’s proposal remains uncertain.
As Maryland’s General Assembly debates the future of the cap, stakeholders from all sides continue to weigh the potential impact on justice, businesses, and the state’s economy.