STAND. COM. REP. NO. 1471

                                 Honolulu, Hawaii
                                                   , 1999

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




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

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 186, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill, as received, limits tort liability
in breach of contract actions, and provides for the naming of
fictitious defendants whose true identities cannot be ascertained
with reasonable certainty at the time of filing suit. 

     Testimony in support of this bill was received from The
Chamber of Commerce of Hawaii.  Testimony in opposition in part
to this bill was received from the Consumer Lawyers of Hawaii.

     Your Committee finds that the provision of this bill
regarding tortious breach of contract exists in Hawaii case law.
Additionally, the provision of this bill regarding fictitious
defendants exists in the Hawaii Rules of Civil Procedure.

     Your Committee finds that a person victimized by the
negligence or wrongful acts of another must be equitably
compensated for those injures.  At the same time, your Committee
recognizes that the present system often times leaves defendants
with virtually limitless exposure in many of these cases.  Your
Committee finds that there is need for a mechanism to discourage
frivolous claims and facilitate the fair and quick resolution of
meritorious claims.

 
 
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     Your Committee believes that these changes in the civil
justice system will create the balance needed to ensure that
fairness and equity prevail while improving our business climate
and economy.

     Your Committee has amended this bill by:

     (1)  Deleting the provision regarding tortious breach of
          contract;

     (2)  Deleting the provision permitting persons to name
          fictitious defendants whose identity cannot be
          ascertained with reasonable certainty at the time of
          filing the action;

     (3)  Adding a purpose clause;

     (4)  Adding a provision to discourage frivolous claims and
          defenses;

     (5)  Adding a provision limiting recovery of noneconomic
          damages in certain tort actions to $500,000;

     (6)  Adding a provision regarding offers of judgment in
          civil actions;

     (7)  Adding a provision limiting punitive damage awards and
          giving discretion as to the award amount to the court;

     (8)  Adding a provision to change the degree of negligence
          for which a joint tortfeasor will become subject to the
          imposition of joint and several liability;

     (9)  Adding provisions which describe which claims will be
          affected by the Act;

     (10) Adding a severability clause; and

     (11) Deleting the effective date.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 186, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 186, S.D. 1, H.D. 1, and be placed on the
calendar for Third Reading.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair