House Study Bill 217 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to tort liability, including employer liability 1 in actions arising from an employee’s negligence, punitive 2 or exemplary damages, and noneconomic damages available 3 against operators of motor vehicles. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2525YC (2) 89 cm/jh

H.F. _____ Section 1. NEW SECTION . 668.12A Liability for employee 1 negligence. 2 1. In a civil action involving an employer, if the employer 3 who is a defendant in the action complies with subsection 2, 4 the employer’s liability for damages caused by the negligence 5 of an employee acting within the course and scope of employment 6 shall be based solely on respondent superior and not on the 7 employer’s direct negligence in hiring, training, supervising, 8 or trusting the employee, or other similar claim that the 9 employer’s negligence enabled the employee’s harmful conduct. 10 2. On motion of an employer who is the defendant in the 11 action, and notwithstanding section 671A.2, a trial court shall 12 dismiss from the action any claim of the employer’s direct 13 negligence in hiring, training, supervising, or trusting an 14 employee, or other claim of direct negligence on the part of 15 the employer for the employee’s harmful conduct, or other 16 similar claims, if the employer stipulates that at the time 17 of the event that caused the damages that are the subject of 18 the action that the person whose negligence is alleged to have 19 caused the damages was the employer’s employee and was acting 20 within the course and scope of employment with the employer. 21 3. If an employer makes the stipulations in subsection 2 22 with respect to an employee, and the employee’s negligence is 23 found to have caused or contributed to causing the damages, the 24 employer shall be adjudged vicariously liable for the resulting 25 damages. 26 Sec. 2. NEW SECTION . 668.15A Noneconomic damages —— motor 27 vehicle operators. 28 1. As used in this section: 29 a. “Noneconomic damages” means damages arising from 30 pain, suffering, inconvenience, physical impairment, mental 31 anguish, emotional pain and suffering, loss of chance, loss of 32 consortium, or any other nonpecuniary damages. 33 b. “Occurrence” means the event, incident, or happening, 34 and the acts or omissions incident thereto, which proximately 35 -1- LSB 2525YC (2) 89 cm/jh 1/ 4

H.F. _____ caused injuries or damages for which recovery is claimed. 1 2. The total amount recoverable in any civil action for 2 noneconomic damages for personal injury or death, whether 3 in tort, contract, or otherwise, against the operator of a 4 motor vehicle shall be limited to seven hundred fifty thousand 5 dollars, regardless of the number of plaintiffs, derivative 6 claims, theories of liability, or defendants in the civil 7 action. 8 Sec. 3. Section 668A.1, Code 2021, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 2A. A claim for punitive or exemplary 11 damages shall not be included in any initial claim for relief. 12 A claim for punitive or exemplary damages may be allowed by 13 amendment to the pleadings only after the exchange of initial 14 disclosures pursuant to rule 1.500(1) of the Iowa rules of 15 civil procedure and after the plaintiff establishes prima facie 16 proof of a triable issue. After the plaintiff establishes the 17 existence of a triable issue, the court may, in its discretion 18 and subject to subsection 3, allow discovery on the issue of 19 punitive or exemplary damages as the court deems appropriate. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to tort liability, including employer 24 liability for an employee’s torts, noneconomic damages 25 available against an operator of a motor vehicle, and pleading 26 and discovery requirements related to punitive damages. 27 The bill provides that an employer’s liability who is a 28 defendant in a civil action for damages caused by negligence of 29 an employee acting within the scope and course of employment 30 shall be based on respondent superior. Upon motion of an 31 employer, and notwithstanding Code section 671A.2 (limitations 32 on liability protection for negligent hiring), a trial court 33 shall dismiss from the action any claim of the employer’s 34 direct negligence in hiring, training, supervising, or trusting 35 -2- LSB 2525YC (2) 89 cm/jh 2/ 4

H.F. _____ an employee, or other claim of direct negligence on the part 1 of the employer for the employee’s harmful conduct, or other 2 similar claims, if the employer stipulates that at the time 3 of the event that caused the damages that the person whose 4 negligence is the basis of the action is the employer’s 5 employee and the employee was acting within the course and 6 scope of employment with the employer. If an employer makes 7 the stipulation with respect to an employee, and the employee’s 8 negligence is found to have caused or contributed to causing 9 the damages, the employer shall be adjudged vicariously liable 10 for the resulting damages. 11 Under current law, an employer is liable for an employee’s 12 negligence and may be held responsible for direct negligence 13 relating to hiring, training, supervising, trusting an 14 employee, or other claims of direct negligence on part of the 15 employee’s harmful conduct, subject to certain limitations 16 contained in Code chapter 671 (negligent hiring —— limitations 17 on liability). 18 The bill limits the amount of noneconomic damages available 19 against the operator of a motor vehicle. The bill defines 20 “noneconomic damages” to mean damages arising from pain, 21 suffering, inconvenience, physical impairment, mental 22 anguish, emotional pain and suffering, loss of chance, loss of 23 consortium, or any other nonpecuniary damages and “occurrence” 24 to mean the event, incident, or happening, and the acts or 25 omissions incident thereto, which proximately caused injuries 26 or damages for which recovery is claimed. The bill provides 27 that the total amount recoverable in any civil action for 28 noneconomic damages for personal injury or death against the 29 operator of a motor vehicle shall be limited to $750,000 30 for any occurrence regardless of the number of plaintiffs, 31 derivative claims, theories of liability, or defendants in 32 the civil action. Under current law, noneconomic damages are 33 unlimited except for suits under Code sections 123.92 (dramshop 34 liability) and 147.136A (medical malpractice). 35 -3- LSB 2525YC (2) 89 cm/jh 3/ 4

H.F. _____ The bill provides that a claim for punitive or exemplary 1 damages in an action governed by Code section 668A.1 shall 2 not be included in any initial claim for relief. A claim for 3 punitive or exemplary damages may be allowed by amendment to 4 the pleadings only after the exchange of initial disclosures 5 and after the plaintiff establishes prima facie proof of a 6 triable issue. After the plaintiff establishes the existence 7 of a triable issue of punitive or exemplary damages, the court 8 may allow additional discovery on the issue of punitive or 9 exemplary damages. Under current law and under the bill, the 10 mere allegation or assertion of a claim for punitive damages 11 cannot form the basis for discovery of the wealth or ability to 12 respond in damages on behalf of the party from whom punitive 13 damages are claimed until the claimant has established that 14 sufficient admissable evidence exists to support a prima facie 15 case establishing, by a preponderance of clear, convincing, and 16 satisfactory evidence, that the conduct of the defendant from 17 which the claim arose constituted willful and wanton disregard 18 for the rights or safety of another. 19 -4- LSB 2525YC (2) 89 cm/jh 4/ 4