Newsletter Sign-up

Business Insurance

News

Utah Legislative Update


July 21, 2009

Strong & Hanni, through attorneys Stephen J. Trayner and Andrew D. Wright, will be providing lobbying services to Strong & Hanni clients and the Utah Defense Lawyers Association again in the 2010 Utah legislative session beginning in January.  There are a number of important issues which we will be introducing which would have a positive impact on individuals, corporations, and their insurers being sued in the State of Utah.  Please contact us should you have questions concerning any of the anticipated proposed legislation described below:

  • Small Claims Court Jurisdiction - Last session, the jurisdictional limit was increased to $10,000. Oftentimes, bodily injury cases brought in small claims court amount to a “trial by ambush.”  We are working on legislation to either 1) prohibit bodily injury claims from being brought in small claims court; or 2) allow limited discovery.
  • Parental signor/furnisher liability statute (minor drivers) - We are working to amend the automobile furnisher statute to not allow the minor's negligence to be imputed to the minor driver if the minor is a resident of the owner’s household and the owner’s car is insured—basically mirror the protections the signer of the driver license has under 53-3-211 (proposed language in "red" below:

53-3-211. Application of minors -- Liability of person signing application -- Cancellation of cosigning adult's liability -
   (b) The person who has signed the application under Subsection (2) is jointly and severally liable with the minor as provided in Subsections (3)(a) and (c).
   (c) The liability imposed under Subsections (3)(a) and (b) is limited to the policy minimum limits established in Section 31A-22-304.
   (d) The liability provisions in this Subsection (3) are in addition to the liability provisions in Section 53-3-212.
    (4) (a) If owner's or operator's security covering the minor's operation of the motor vehicle is in effect in amounts as required under Section 31A-22-304, the person who signed the minor's application under Subsection (2) is not subject to the liability imposed under Subsection (3).

53-3-212 Owner giving permission and minor liable for damages caused by minor driving a motor vehicle.
   (1) The owner of a motor vehicle causing or knowingly permitting a person younger than 18 years of age to drive the motor vehicle on a highway, or a person who gives or furnishes a motor vehicle to the minor, are each jointly and severally liable with the minor for any damages caused by the negligence of the minor in driving the motor vehicle.

   (a) the minor resides in the same household as the owner of the motor vehicle and if owner’s or operator’s security covering the minor’s operation of the motor vehicle is in effect in amounts as required under Section 31A-22-304, the owner of the motor vehicle is not subject to the liability imposed under Subsection (1)

  • Billed vs. Paid - To assist in the accurate evaluation of the reasonable value of plaintiff’s actual special damages, we are proposing to amend the statutory definition of “special damages” to include the amount actually “paid” (the health insurer’s contracted price) on a medical bill versus the higher (retail) amount.
  • 31A-22-321 - Use of arbitration in third party motor vehicle accident cases – The plaintiff bar wants to increase the jurisdictional cap from $25,000 to $50,000.  We will oppose this legislation.
  • Loss of Consortium - Plaintiff ‘s bar will propose legislation to allow a separate limit for the loss of consortium claimant. We will oppose this legislation.

 

Summary provided by Stephen J. Trayner