Bill Text: MS SB2518 | 2017 | Regular Session | Introduced


Bill Title: Limitation on named parties and economic damages in nursing home personal injury litigation; provide for.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2017-01-31 - Died In Committee [SB2518 Detail]

Download: Mississippi-2017-SB2518-Introduced.html

MISSISSIPPI LEGISLATURE

2017 Regular Session

To: Public Health and Welfare; Judiciary, Division A

By: Senator(s) Michel

Senate Bill 2518

AN ACT TO PROVIDE THAT A CAUSE OF ACTION FOR NURSING HOME NEGLIGENCE OR LIABILITY FOR PERSONAL INJURY OR DEATH OF A RESIDENT MAY NOT BE BROUGHT AGAINST AN INDIVIDUAL OR ENTITY OTHER THAN THE LICENSEE OR MANAGEMENT ENTITY WITHOUT LEAVE OF THE COURT; TO PROVIDE THAT THE COURT MAY AUTHORIZE DISCOVERY OF EVIDENCE OF A DEFENDANT'S NET WORTH IN SUCH CASES; TO PROVIDE THAT ECONOMIC DAMAGES IN SUCH CASES IS LIMITED TO THE AMOUNT ACTUALLY PAID AND INCURRED; TO PROVIDE FOR THE ADMISSIBILITY OF SURVEYS IN SUCH CASES; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Limitation on named parties in nursing home litigation.  (1)  A cause of action for nursing home negligence or a violation of residents' rights which alleges direct or vicarious liability for the personal injury or death of a nursing home resident arising from such negligence or violation of rights and which seeks damages for such injury or death may be brought only against the licensee, and the licensee's management or consulting company.  A passive investor is not liable under this section.  An action against any other individual or entity may be brought only pursuant to subsection (2) of this section.

     (2)  A cause of action may not be asserted against an individual or entity other than the licensee, or the licensee's management or consulting company, unless, after a hearing on a motion for leave to amend, the court or an arbitration panel determines that there is sufficient evidence in the record or proffered by the claimant to establish a reasonable showing that:

          (a)  The individual or entity owed a duty of reasonable care to the resident and that the individual or entity breached that duty; and

          (b)  The breach of that duty is a legal cause of loss, injury, death or damage to the resident.

     (3)  A passive investor as used in this section means an individual, lender, investor, vendor or entity that does not participate in the decision-making or operation of the facility.   SECTION 2.  Financial worth discovery.  (1)  On the motion of a party and after notice and a hearing, a trial court may authorize discovery of evidence of a defendant's net worth if the court finds in a written order that the claimant has demonstrated a substantial likelihood of success on the merits of a claim for punitive damages.  Evidence submitted by a party to the court in support of or in opposition to a motion made under this subsection may be in the form of an affidavit or a response to discovery.

     (2)  If a trial court authorizes discovery under subsection (1) of this section, the court's order may only authorize use of the least burdensome method available to obtain the net worth evidence.

     (3)  When reviewing an order authorizing or denying discovery of net worth evidence under this section, the reviewing court may consider only the evidence submitted by the parties to the trial court in support of or in opposition to the motion described by subsection (1) of this section.

     (4)  If a party requests net worth discovery under this section, the court shall presume that the requesting party has had adequate time for the discovery of facts relating to punitive damages for purposes of allowing the party from whom net worth discovery is sought to move for summary judgment on the requesting party's claim for punitive damages.

     (5)  If the trial court determines net worth discovery is needed, it is mandated to order only the "least burdensome" method.  This includes tax returns, financial statements or Securities and Exchange Commission filings.

     SECTION 3.  Evidence relating to amount of economic damages.  (1)  In addition to any other limitation under law, recovery of medical or health care expenses incurred in an action on a health care liability claim defined in Section 1 of this act is limited to the amount actually paid or incurred by or on behalf of the claimant.

     (2)  "Actually paid and incurred" means expenses that have been or will be paid, and excludes the difference between such amount and charges the service provider bills but has no right to be paid, and any adjustments, write-offs, credits or discounts to amounts billed as circumstances may warrant.

     SECTION 4.  Admissibility of surveys.  (1)  The results of a survey conducted on a nursing facility, including any statement of deficiencies and all findings and deficiencies cited in the statement on the basis of the survey, shall be used solely to determine the nursing facility's compliance with certification requirements.

     (2)  These results of a survey, the statement of deficiencies, and the findings and deficiencies cited in said statement shall only be used in any of the following:

          (a)  An appeal of an administrative action by the department of Medicaid (or contracting agency);

          (b)  An action by a state department or agency to enforce a chapter of the Mississippi Code of 1972; or

          (c)  Criminal proceedings.

     (3)  Surveys are not permitted to be admitted into evidence in any action on a health care liability claim or against a nursing home operator.

     SECTION 5.  The provisions of this act shall apply to any cause of action filed on or after July 1, 2017.

     SECTION 6.  This act shall take effect and be in force from and after July 1, 2017.

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