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LDF Victory:  Split Supreme Court Finds Law Limiting Damage Awards In Product Liability Lawsuits Is Constitutional

The Ohio Supreme Court today upheld the constitutionality of a law that limits the amount of damages that may be awarded to injured persons who win product liability lawsuits.  This case was supported by the Legal Defense Fund and it is an important victory because the language used to limit non-economic damages in Consumer Sales Practices Act cases was modeled after the language used in the tort reform statutes upheld today.  Had the decision been unfavorable, it was highly likely that SB 117 and its cap on non-economic damages would have been challenged by plaintiffs across the state.  Now, we can be much more confident that a cap on non-economic damages of $5,000 which cannot be trebled, is undeniably settled law in Ohio .  We can’t stress enough that SB 117 and the cap on non-economic damages became a critical issue when a jury took a CSPA case worth $2500 and awarded a consumer $500,000.

Justices said in a 5-2 opinion that caps on non-economic and punitive damages do not violate a right to jury, due process, equal protection, or the single subject rule of the Ohio Constitution.

Chief Justice Thomas Moyer said in the lead opinion that the decision “affirms the General Assembly’s efforts over the last several decades to enact meaningful tort reforms.” The case dealt with four tort-reform statutes (SB80, 125^th General Assembly) that took effect April 7, 2005.  Concurring were Justices Evelyn Stratton, Maureen O’Connor, Judith Lanzinger, and Robert Cupp. Justice Terrence O’Donnell dissented in part. Justice Paul Pfeifer dissented.

This is an extremely important decision and underscores the critical role DIG and LDF play when advocating on behalf of the dealer body. 

• Dealers who contribute to DIG provide necessary tools to support those legislators that understand the importance of the retail motor vehicle industry to the state of Ohio .  This support enables us to seek legislation that limits non-economic damages awarded pursuant to the Consumer Sales Practices Act.

• Dealers who contribute to LDF provide the opportunity to address our industry’s legal concerns at the appellate level and ensure our voice is heard before the judiciary.

DIG and LDF are dealers’ most powerful tools.  Without the generous support of dealers across the state, this victory would not have been possible!