Recent California News

April 2024 Newsletter

Shining a light on third-party financing of liability lawsuits Opinion leaders in the Sunshine State are pushing for the legislature to shed light on third-party financing of medical liability lawsuits, calling for a special legislative session to curb this practice,...

March 2024 Newsletter

Campaign donations linked to expanding litigation laws in New York In pursuit of new avenues that would allow for an expanded ability to file liability lawsuits in New York, personal injury lawyers have pumped an increasing amount of money into the campaign coffers of...

Who Pays When Your Doctor’s AI Goes Rogue?

Doctors using new artificial intelligence tools to help them diagnose and treat their patients say they wish Congress would provide some clarity on a big unanswered question: Who pays if AI makes a mistake? Advancements in AI promise to improve care, but only if...

Current Medical Liability Laws

Damage Caps	In 2022, California enacted AB 35. Noneconomic damages in cases not involving a patient death are capped at $350k starting January 1, 2023, with an incremental increase over the next 10 years to $750k and a 2.0% annual inflationary adjustment after that. As of Jan.1, 2025, the cap is $430k. Cases involving a patient death will have a limit of $500k on the effective date of January 1, 2023, with an incremental increase over the next 10 years to $1 million and a 2.0% annual inflationary adjustment thereafter. As of Jan. 1, 2025, this cap is $600k.
Joint Liability Reform	Yes. Defendants are proportionately liable for noneconomic damages. However, they are jointly and severally liable for economic damages.
Collateral Source Reform	Collateral Source Rule applies. In cases of medical malpractice defendant may introduce evidence of collateral sources of payment, claimant may introduce evidence of amount paid to secure benefits.
Attorney Fees Limited	Yes. (1) 25% contingency fee limit for claims resolved PRIOR to civil complaint being filed or arbitration demand being made; (2) 33% contingency fee limit for claims resolved AFTER civil complaint is filed or arbitration demand is made.
Periodic Payments Permitted	Yes. Per AB 35 (2022) at the request of either party, periodic payments can be utilized for future economic damages starting at $250,000.