California tort reform really does work

Article

The 1975 California law that placed caps on non-economic damages awarded in medical malpractice cases reduces both defendants' costs and attorneys' fees, according to a new study by the RAND Institute for Civil Justice. Examining 257 plaintiff verdicts between 1995 and 1999, the study found a 30% reduction in the rate of recovery for plaintiffs and a 60% cut in attorneys' fees.

The 1975 California law that placed caps on non-economic damages awarded in medical malpractice cases reduces both defendants' costs and attorneys' fees, according to a new study by the RAND Institute for Civil Justice. Examining 257 plaintiff verdicts between 1995 and 1999, the study found a 30% reduction in the rate of recovery for plaintiffs and a 60% cut in attorneys' fees.

The California Medical Injury Compensation Reform Act places a $250,000 cap on non-economic damages in medical malpractice cases. It also puts limits on plaintiffs' attorney fees-at 40% of the first $50,000 of recovery, 33% of the next $50,000, 25% of the next $500,000, and 15% of any amount more than $600,000-reported Medical Liability Monitor (8/04).

The study found that, after applying both provisions of the law, plaintiffs' net recoveries were 15% less than they would have been without the cap on damages or fee limits. Researchers also found that:

Newsletter

Get the latest clinical updates, case studies, and expert commentary in obstetric and gynecologic care. Sign up now to stay informed.

Recent Videos
Ousseny Zerbo, PhD, highlights benefits of influenza vaccination during pregnancy | Image Credit: divisionofresearch.kaiserpermanente.org.
Michael Ussher, PhD, highlights the benefits of vaping over smoking in pregnancy | Image Credit: sgul.ac.uk.
Neal Barnard, MD, FACC, highlights AMA's new breast cancer prevention guidelines | Image Credit: pcrm.org.
Zachary Wagner, PhD, discusses the harms of bias in reproductive care | Image Credit: ornsife.usc.edu.
Related Content
© 2025 MJH Life Sciences

All rights reserved.