LEGISLATIVE UPDATE - 2008

The Utah Legislature convenes every year from January to the early part of March. Robert J. DeBry & Associates tries to monitor that legislation which could impact Utahns who have suffered injuries due to the negligent conduct of others. This year, several pieces of legislation will impact individuals who have suffered such injuries. A summary of that legislation includes:

1. House Bill 144 (Representative Kiser). This legislation affects how insurance companies pay each other back regarding the no-fault or PIP subrogation claim. Under Utah law, the at-fault driver’s insurance in an auto accident is required to repay the injured person’s auto insurance for no-fault benefits expended in behalf of the injured individual. However, the exception to that rule is if the at-fault driver’s insurance is entirely paid to the injured person for his own injuries. In that instance, this new law would state that the injured person’s insurance is simply not repaid for the no-fault benefits expended. That is, the injured person’s compensation is not reduced for payback to his own insurance company’s no-fault pay-outs. We believe this is a codification of existing practice. Nonetheless, it is helpful to have this as a matter of Utah law.

2. House Bill 191 (Representative Urquhart). This bill involved the arbitration of medical malpractice cases. It was not pursued heavily through either Chamber. Instead, this bill has been referred to Interim Study. Individuals made up of the different interest groups will meet to try to pull together legislation which can be acted upon next session.

3. House Bill 467 (Representative Urquhart). This bill affects the auto arbitration act found at §31A-22-321. This act has been in force for three years. This act allows persons injured in auto accidents to pursue resolution of the claim through arbitration rather than through jury trial. The act allows either party to move for a whole new trial after the arbitration if either party believes the arbitration result is inappropriate. This legislation requires a person or insurance company who requests a new trial to obtain a verdict which changes the result of the arbitration award by more than 35% or pay costs to the other party. The earlier law set this threshold at 20%. Thus, if an injured person obtains an arbitration award, but the insurance company for the at-fault driver appeals the decision to a jury trial, the insurance company now must be successful in having the jury return a verdict that is more than 35% less than the arbitration award, or face paying costs. The sponsor of this legislation made this change so that appeals from arbitration awards would not be taken lightly or as a matter of policy.

DeBry & Associates believes this is a very good change. The auto arbitration statute has worked well as long as the awards are not routinely appealed to a jury trial. In the event an insurance company treats the arbitration process as just another stepping stone to a jury trial, the injured person can suffer significant additional costs and have the claim extended for a substantial amount of time. We applaud Representative Urquhart for his work in putting real teeth in the auto arbitration act.

4. Senate Bill 149 (Senator Kilpack). This legislation modifies Utah law on auto insurance minimum limit coverage. Under Utah law, the minimum coverage a Utahn can buy would provide liability coverage of $25,000 per person or $50,000 per accident. This level has been the same for the last 15 years. Senator Kilpack filed a bill which would increase the auto liability minimum coverage from $25,000 per person or $50,000 per accident to $30,000 per person or $60,000 per accident. Through negotiations, the legislature ultimately passed a change to the Utah auto minimum liability coverage. As of January 1, 2009, Utahns will buy coverage of $25,000 per person or $65,000 per accident. Robert J. DeBry & Associates believes this is a very positive change. When an at-fault driver causes an accident to a car or van having several passengers in it. the minimum limits simply are not enough to fairly compensate all individuals. This change will at least address that difficulty.

5. Senate Bill 152 (Senator Bell). This legislation was designed to allow insurance companies to resolve wrongful death claims, that unfortunately have only minimum liability coverage, in a more summary manner. This is a positive change in that it will allow wrongful death claims that have a minimum amount of coverage available to them to be resolved quickly, summarily, and without the use of a lawyer. Robert J. DeBry & Associates applauds Senator Bell’s efforts in streamlining this process.

6. Senate Bill 182 (Senator Waddoups). Presently, Utah has a statute known as the “survivorship statute.” This statute sets out what happens when an individual injured at the hands of another dies of causes unrelated to the accident before the claim is resolved. Unfortunately, Utah law states that, in such a circumstance, the injured person’s estate does not receive compensation for the pain, suffering, hassle, and loss of enjoyment of life that individual suffered before he died of unrelated causes. Robert J. DeBry & Associates believes this is an odd feature of Utah law. For instance, if a person dies of the injuries caused in the accident, his heirs have a claim for wrongful death. His heirs have a claim both for the wrongful death of the individual as well as for the pre-death pain and suffering the individual suffered before his passing. However, in the event a person dies of an unrelated cause, his heirs do not have a claim for the pain and suffering aspect. This legislation would have solved that conflict. However, this legislation did not pass because the session ended before the same could be voted on. Robert J. DeBry & Associates applauds Senator Waddoups for pushing this legislation and we are hopeful this legislation will again be filed next year.