Senate Study Bill 1114 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN) A BILL FOR An Act relating to tort liability, including employer 1 liability and noneconomic damages in civil actions involving 2 commercial motor vehicles, and punitive or exemplary damages 3 in civil actions generally. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1815XC (2) 90 cm/ns

S.F. _____ Section 1. NEW SECTION . 668.12A Liability for employee 1 negligence in actions involving commercial motor vehicles. 2 1. Subject to subsection 4, in a civil action involving the 3 operation of a commercial motor vehicle, if an employer who 4 is a defendant in the action complies with subsection 2, the 5 employer’s liability for damages caused by the negligence of an 6 employee operating a commercial motor vehicle within the course 7 and scope of employment shall be based solely on respondeat 8 superior and not on the employer’s direct negligence in hiring, 9 training, supervising, or trusting the employee. 10 2. On motion of an employer who is a defendant in a civil 11 action involving the operation of a commercial motor vehicle, 12 a trial court shall dismiss from the civil action any claim 13 of the employer’s direct negligence in hiring, training, 14 supervising, or trusting the employee, or other claim of direct 15 negligence on the part of the employer for the employee’s 16 harmful conduct, or other similar claims, if the employer 17 stipulates that at the time of the event that caused the 18 damages that are the subject of the civil action that the 19 person whose negligence is alleged to have caused the damages 20 was the employer’s employee and was acting within the course 21 and scope of employment with the employer. 22 3. If an employer makes the stipulations in subsection 2 23 with respect to an employee, and the employee’s negligence is 24 found to have caused or contributed to causing the damages, 25 the employer shall be adjudged liable solely on the basis of 26 respondeat superior for all the resulting damages. 27 4. This section does not apply if the civil action involving 28 a commercial motor vehicle arises from an incident for which an 29 employee is convicted under section 321J.2 or found to be in 30 violation of 49 C.F.R. §392.4 or 49 C.F.R. §392.5. 31 5. As used in this section: 32 a. “Commercial motor vehicle” means as defined in section 33 321.1. 34 b. “Convicted” means convicted of an indictable offense and 35 -1- LSB 1815XC (2) 90 cm/ns 1/ 5

S.F. _____ includes a guilty plea or other finding of guilt by a court of 1 competent jurisdiction. 2 c. “Operation” or “operating” means actual physical control 3 of a commercial motor vehicle upon a highway as defined in 4 section 321.1. 5 Sec. 2. NEW SECTION . 668.15A Noneconomic damages —— 6 commercial motor vehicle owners or operators. 7 1. As used in this section: 8 a. “Commercial motor vehicle” means as defined in section 9 321.1. 10 b. “Convicted” means convicted of an indictable offense and 11 includes a guilty plea or other finding of guilt by a court of 12 competent jurisdiction. 13 c. “Inflation” means the annual percentage change in the 14 United States department of labor, bureau of labor statistics, 15 consumer price index for all urban consumers for the midwest 16 region, all items, or its successor index. 17 d. “Noneconomic damages” means damages arising from 18 pain, suffering, inconvenience, physical impairment, mental 19 anguish, emotional pain and suffering, loss of chance, loss of 20 consortium, or any other nonpecuniary damages. 21 e. “Operation” means actual physical control of a commercial 22 motor vehicle upon a highway as defined in section 321.1. 23 2. The total amount recoverable by each plaintiff in any 24 civil action involving the operation of a commercial motor 25 vehicle for noneconomic damages for personal injury or death, 26 whether in tort, contract, or otherwise, against the owner or 27 operator of a commercial motor vehicle shall be limited to one 28 million dollars, regardless of the number of claims, theories 29 of liability, or defendants in the civil action. 30 3. a. The limitation on damages set forth in subsection 2 31 shall be adjusted for inflation by the secretary of state on 32 January 1, 2026, and on January 1 of each even-numbered year 33 thereafter. 34 b. The secretary of state shall certify and publish the 35 -2- LSB 1815XC (2) 90 cm/ns 2/ 5

S.F. _____ adjusted limitation on damages within fourteen days after the 1 appropriate information is available. 2 4. This section does not apply if the civil action involving 3 a commercial motor vehicle arises from an incident for which an 4 employee is convicted under section 321J.2 or found to be in 5 violation of 49 C.F.R. §392.4 or 49 C.F.R. §392.5. 6 Sec. 3. Section 668A.1, Code 2023, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 2A. A claim for punitive or exemplary 9 damages shall not be included in any initial claim for relief. 10 A claim for punitive or exemplary damages may be allowed by 11 amendment to the pleadings only after the exchange of initial 12 disclosures pursuant to the Iowa rules of civil procedure and 13 after the plaintiff establishes prima facie proof of a triable 14 issue. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to tort liability. 19 Under current law, an employer is liable for an employee’s 20 negligence and may be held responsible for direct negligence 21 relating to hiring, training, supervising, or trusting an 22 employee, or other claims of direct negligence on part of the 23 employee’s harmful conduct, subject to certain limitations 24 contained in Code chapter 671A (negligent hiring —— limitations 25 on liability) relating to convictions for public offenses, with 26 certain exceptions. 27 The bill provides that the liability of an employer who is 28 a defendant in a civil action involving a commercial motor 29 vehicle for damages caused by negligence of an employee acting 30 within the scope and course of employment shall be based on 31 respondeat superior if the employer makes certain stipulations. 32 On motion of an employer, a trial court shall dismiss from 33 the action any claim of the employer’s direct negligence in 34 hiring, training, supervising, or trusting an employee, or 35 -3- LSB 1815XC (2) 90 cm/ns 3/ 5

S.F. _____ other claim of direct negligence on the part of the employer 1 for the employee’s harmful conduct, or other similar claims, 2 if the employer stipulates that at the time of the event that 3 caused the damages that the person whose negligence is the 4 basis of the action is the employer’s employee and the employee 5 was acting within the course and scope of employment with the 6 employer. These provisions do not apply in circumstances 7 involving an operating-while-intoxicated offense or a violation 8 under federal regulations for operating under the influence of 9 drugs, alcohol, or other substances. 10 The bill limits the amount of noneconomic damages available 11 against the owner or operator of a commercial motor vehicle for 12 personal injury or death to $1 million regardless of the number 13 of derivative claims, theories of liability, or defendants in 14 the civil action. The secretary of state shall adjust the 15 noneconomic damages award limitation on a biannual basis to 16 account for inflation beginning on January 1, 2026, and every 17 even-numbered year thereafter. Under current law, noneconomic 18 damages are unlimited except for suits under Code sections 19 123.92 (dramshop liability) and 147.136A (awards against health 20 care providers). 21 The bill provides that a claim for punitive or exemplary 22 damages in an action governed by Code section 668A.1 shall 23 not be included in any initial claim for relief. A claim for 24 punitive or exemplary damages may be allowed by amendment to 25 the pleadings only after the exchange of initial disclosures 26 and after the plaintiff establishes prima facie proof of a 27 triable issue. Under current law and under the bill, the 28 mere allegation or assertion of a claim for punitive damages 29 cannot form the basis for discovery of the wealth or ability to 30 respond in damages on behalf of the party from whom punitive 31 damages are claimed until the claimant has established that 32 sufficient admissible evidence exists to support a prima facie 33 case establishing, by a preponderance of clear, convincing, and 34 satisfactory evidence, that the conduct of the defendant from 35 -4- LSB 1815XC (2) 90 cm/ns 4/ 5

S.F. _____ which the claim arose constituted willful and wanton disregard 1 for the rights or safety of another. 2 -5- LSB 1815XC (2) 90 cm/ns 5/ 5