STAND. COM. REP. NO. 828

Honolulu, Hawaii

, 2001

RE: S.B. No. 759

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 759 entitled:

"A BILL FOR AN ACT RELATING TO TORT ACTIONS,"

begs leave to report as follows:

The purpose of this measure is to simplify the procedures and reduce the costs associated with claims involving joint tortfeasors.

Your Committee received testimony in support of the measure from the Consumer Lawyers of Hawaii and the Hawaii Claims Managers Association.

Your Committee finds that the measure:

(1) Establishes a new joint tortfeasor release statute that includes the right of contribution;

(2) Repeals the existing joint tortfeasor release statute and right of contribution statute; and

(3) Establishes a good faith settlement procedure for joint tortfeasors and co-obligors.

Your Committee finds that the measure is the product of a collaborative effort between insurers and attorneys to simplify the procedures and reduce the costs associated with claims involving joint tortfeasors. The procedures proposed by the measure are based on a system that has been in existence in California for over ten years.

Your Committee has amended the measure by clarifying:

(1) That when a confidentiality agreement has been made between parties regarding settlement terms or a claim, the court shall hear the matter in a manner that maintains confidentiality while also providing other joint tortfeasors and co-obligors with enough information to make a determination as to whether or not to object to the proposed settlement;

(2) That the procedures, rights, and obligations established under the measure shall apply to a release, dismissal, or covenant given before, as well as after, a lawsuit has been filed and does not require the existence of a lawsuit;

(3) That the measure shall apply to any release, dismissal, or covenant given after the measure takes effect, regardless of the date of the occurrence of the underlying claim, except for claims arising out of a contract made prior to January 1, 2002; and

(4) That the measure shall apply to contract claims where the contract was made on or after January 1, 2002.

Your Committee has also made technical amendments which properly alphabetize the subsections contained in the proposed new section to be added to Chapter 663, Hawaii Revised Statutes.

Your Committee believes that the amended measure will achieve its stated purpose while still adequately protecting the rights of all parties involved.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 759, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 759, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

BRIAN KANNO, Chair