Small business groups urge PA court to rein in noneconomic damage awards

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The National Federation of Independent Business (NFIB) and a coalition of business and legal organizations filed an amicus brief on June 23 urging the Pennsylvania Superior Court to establish clear standards for awarding noneconomic damages in civil cases.

The brief was submitted in the case Paul Gill and Diane Gill v. Shell Oil Company, et al., which raises concerns over the subjective nature of noneconomic damage awards, such as compensation for pain and suffering or loss of life’s pleasures, according to NFIB.

“The subjective nature of noneconomic damages allows for arbitrary and excessive jury verdicts that punish small business defendants,” said Beth Milito, vice president and executive director of NFIB’s Small Business Legal Center. 

“With the growing phenomenon of cases seeking compensation for inherently subjective noneconomic injuries such as loss of life’s pleasures,” added Milito, “small businesses throughout Pennsylvania are relying on the court to establish guidelines for how these damages are determined.”

In the filing, NFIB and its co-signers argue that large, unpredictable awards for noneconomic damages are straining the tort system and having broader legal and social consequences. 

In the brief, they urge the court to set “appropriate guardrails” to ensure consistency and fairness in such verdicts.

Joining NFIB in the brief are the U.S. Chamber of Commerce, the Pennsylvania Chamber of Business and Industry, the Pennsylvania Coalition for Civil Justice Reform, the American Property Casualty Insurance Association, the Insurance Federation of Pennsylvania, the Pennsylvania Manufacturers’ Association, and the Washington Legal Foundation.

NFIB’s Small Business Legal Center, which filed the brief, is currently involved in more than 40 active cases nationwide, including matters before the U.S. Supreme Court. The organization focuses on defending the legal rights of small business owners.