CONFERENCE COMMITTEE REPORT NO. 39

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 186
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 186, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO TORT LIABILITY," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to make changes to certain
aspects of Hawaii's tort law system, and to implement in part
ideas raised in a report presented to the Legislature by the Tort
Law Study Group, pursuant to S.C.R. 256, H.D. 1 (1997).

     Your Committee finds that there is an interest, particularly
in the business and professional community, in modifications to
Hawaii's tort law system that would serve to bring down the costs
of litigation and discourage the filing of meritless claims.
However, your Committee further finds that proposals of sweeping
changes to the present theories of liability and recovery were
not recommended by the Study Group, and are not the subject of

 
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any consensus within the community at this time.  Therefore, your
Committee has combined elements of the House and Senate drafts of
this measure, in seeking to make changes to Hawaii's tort law
system that will implement some of the ideas raised by the Study
Group and improve the present system without drastically altering
it.

     Upon further consideration, your Committee has amended this
measure by:

     (1)  Deleting the purpose clause;

     (2)  Deleting the provision placing a limitation on the
          recovery of noneconomic damages;

     (3)  Deleting the provision regarding offers of judgment in
          civil actions;

     (4)  Deleting the provision limiting punitive damages awards
          and giving discretion as to the award amount to the
          court;

     (5)  Deleting a severability clause;

     (6)  Reinserting a provision from S.B. 186, S.D. 1,
          codifying the Hawaii Supreme Court's decision as to
          tortious breach of contract in Francis v. Lee
          Enterprises, Inc., No. 21631 (Haw. 1999);

     (7)  Reinserting a provision from the S.D. permitting
          pleaders to name, under fictitious names, defendants
          whose responsibility for the wrongful acts alleged is
          unknown, in addition to defendants whose identity is
          unknown;

     (8)  Reinserting the effective date from the S.D.;

     (9)  Adding to the provision as to attorneys' fees in civil
          actions, further language permitting a party to request
          that another party drop frivolous claims or defenses,
          and providing that the court may consider such a
          request in determining whether claims or defenses were
          frivolous;

     (10) Deleting language that would have altered the
          percentage of negligence subjecting a tortfeasor to
          joint and several liability for noneconomic damages in
          certain cases;


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     (11) Inserting language stating that joint and several
          liability does not apply to design professionals and
          accountants for non-physical injury cases; and

     (12) Making technical, non-substantive changes for the
          purposes of clarity and style.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 186, S.D. 1, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 186, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
PAUL T. OSHIRO, Chair              AVERY B. CHUMBLEY, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Member           MATTHEW M. MATSUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
KENNETH T. HIRAKI, Member          BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
JOSEPH M. SOUKI, Member            BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
EMILY J. AUWAE, Member             SUZANNE CHUN OAKLAND, Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY ANDERSON, Member

 
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