SB363 - Revises provisions governing civil actions. (BDR 3-1017)

S.B. 363 - *SB363* SENATE BILL NO. 363–SENATOR HANSEN MARCH 17, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions governing civil actions. (BDR 3-1017) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to civil actions; removing and repealing provisions relating to vicarious liability; revising provisions governing comparative negligence; requiring a trier of fact to consider the fault of all persons, including persons not named as a party, in an action to recover damages for death or injury to persons or for injury to property; authorizing the admission of certain evidence in certain civil actions; limiting the amount of medical expenses recoverable as damages in certain civil actions; limiting the amount of fees that a private attorney or representative may receive in proceedings under the Nevada Industrial Insurance Act; and providing other matters properly relating thereto. Legislative Counsel’s Digest: A common law doctrine, known as “vicarious liability,” generally provides that 1 a principal party is responsible for the actions of the agent of the principal. Existing 2 law provides: (1) whenever any person suffers personal injury by wrongful act, 3 neglect or default of another, the person causing the injury is liable to the person 4 injured for damages; and (2) with certain exceptions, where the person causing the 5 injury is employed by another person or corporation responsible for the conduct of 6 the person causing the injury, the other person or corporation is liable to the person 7 injured for damages. (NRS 41.130) Section 2 of this bill instead provides that only 8 the person causing the injury is liable to the person injured and removes the 9 provisions of existing law providing for liability on the employer for the actions of 10 the person who caused the injury. Section 10 of this bill repeals the existing 11 provisions of law which set forth certain limitations on the liability of the employer, 12 and section 1 of this bill makes a conforming change to remove a reference to the 13 provisions repealed by section 10. 14 – 2 – - *SB363* Existing law provides that in any action to recover damages for death or injury 15 to persons or property where comparative negligence is asserted as a defense, the 16 comparative negligence of the plaintiff or the plaintiff’s decedent does not bar 17 recovery if that negligence was not greater than the negligence or gross negligence 18 of the parties against whom recovery is sought. If the jury determines that the 19 plaintiff is entitled to recover in such a case, existing law requires the jury to return: 20 (1) a general verdict with the total amount of damages the plaintiff would be 21 entitled to recover notwithstanding the plaintiff’s comparative negligence; and (2) a 22 special verdict indicating the percentage of negligence assigned to each party 23 remaining in the action. Existing law further requires that, in an action where a 24 plaintiff may recover from more than one defendant, each defendant is severally 25 liable to the plaintiff only for that portion of the judgment representing the 26 percentage of negligence assigned to that defendant. Existing law also contains 27 exceptions for certain causes of action where the doctrine of joint and several 28 liability may apply. (NRS 41.141) Section 3 of this bill: (1) removes the 29 requirement for comparative negligence to be asserted as a defense; (2) removes the 30 limitation prohibiting the comparative negligence of the defendant and the amount 31 of the settlement from being admitted into evidence or considered by a jury; (3) 32 requires a trier of fact to consider the fault of all persons who contributed to the 33 death, injury or damage to the property; (4) authorizes a trier of fact to consider the 34 negligence, strict liability or fault of a nonparty under certain circumstances; (5) 35 provides various limitations on the use of percentages of fault for nonparties; and 36 (6) repeals the provisions providing for joint and several liability in certain 37 circumstances. 38 A common law doctrine, known as the “collateral source rule,” prohibits a 39 defendant in a tort case, which generally includes actions for personal injury, from 40 introducing into evidence proof of amounts that the plaintiff received or was 41 entitled to receive from a source other than the defendant in compensation for the 42 harms or injuries caused by the defendant. Existing law provides a limited 43 exception to the collateral source rule by allowing a defendant in a case against a 44 provider of health care based upon professional negligence to introduce evidence of 45 amounts paid or payable to a plaintiff pursuant to policies of health or accident 46 insurance, the United States Social Security Act, worker’s compensation statutes 47 and other programs or contracts that pay for or reimburse costs of health care. 48 (NRS 42.021) 49 Section 4 of this bill abolishes the common law collateral source rule in civil 50 actions for personal injury, other than those actions against a provider of health care 51 based upon professional negligence, and instead limits the amount of damages for 52 medical expenses to the amount that the plaintiff has been or will be compensated 53 for his or her injury by health insurance, Medicare or Medicaid. 54 Existing law establishes the Nevada Industrial Insurance Act, which provides 55 for the payment of compensation to employees who are injured or disabled as a 56 result of an occupational injury or disease. (Chapters 616A-616D of NRS) Sections 57 5-9 of this bill revise various provisions of the Act to prohibit a private attorney or 58 representative of a claimant or injured employee, as applicable, from receiving a 59 fee for any services provided in an amount greater than 20 percent of any lump sum 60 payment paid to the claimant or injured employee. 61 – 3 – - *SB363* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 41.03475 is hereby amended to read as 1 follows: 2 41.03475 [Except as otherwise provided in NRS 41.745, no] A 3 judgment may not be entered against the State of Nevada or any 4 agency of the State or against any political subdivision of the State 5 for any act or omission of any present or former officer, employee, 6 immune contractor, member of a board or commission or State 7 Legislator which was outside the course and scope of the person’s 8 public duties or employment. 9 Sec. 2. NRS 41.130 is hereby amended to read as follows: 10 41.130 [Except as otherwise provided in NRS 41.745,] 11 Notwithstanding any other provision of law, whenever any person 12 shall suffer personal injury by wrongful act, neglect or default of 13 another, only the person causing the injury is liable to the person 14 injured for [damages; and where the person causing the injury is 15 employed by another person or corporation responsible for the 16 conduct of the person causing the injury, that other person or 17 corporation so responsible is liable to the person injured for] 18 damages. 19 Sec. 3. NRS 41.141 is hereby amended to read as follows: 20 41.141 1. In any action to recover damages for death or 21 injury to persons or for injury to property , [in which comparative 22 negligence is asserted as a defense,] the comparative negligence of 23 the plaintiff or the plaintiff’s decedent does not bar a recovery if that 24 negligence was not greater than the negligence or gross negligence 25 of the parties to the action against whom recovery is sought. 26 2. In those cases, the judge shall instruct the jury that: 27 (a) The plaintiff may not recover if the plaintiff’s comparative 28 negligence or that of the plaintiff’s decedent is greater than the 29 negligence of the [defendant] tortfeasor or the combined negligence 30 of multiple [defendants.] tortfeasors. 31 (b) If the jury determines the plaintiff is entitled to recover, it 32 shall return: 33 (1) By general verdict the total amount of damages the 34 plaintiff would be entitled to recover without regard to the plaintiff’s 35 comparative negligence; and 36 (2) A special verdict indicating the percentage of negligence 37 attributable to each [party remaining in the action.] tortfeasor. 38 3. If a defendant in such an action settles with the plaintiff 39 before the entry of judgment, the [comparative negligence of that 40 defendant and the amount of the settlement must not thereafter be 41 admitted into evidence nor considered by the jury. The] judge shall 42 – 4 – - *SB363* deduct the amount of the settlement from the net sum otherwise 1 recoverable by the plaintiff pursuant to the general and special 2 verdicts. 3 4. In assessing percentages of fault, the trier of fact shall 4 consider the fault of all persons who contributed to the death of, 5 or injury to, a person or injury to property, regardless of whether: 6 (a) The person was, or could have been, named a party to the 7 suit; and 8 (b) Liability is based upon strict liability or negligence. 9 5. The trier of fact may consider the negligence, strict liability 10 or fault of any nonparty if the plaintiff entered into a settlement 11 agreement with the nonparty or if the defending party gives notice 12 before trial, in accordance with any requirements established by 13 court rule, that a nonparty was wholly or partially at fault. 14 6. An assessment of percentage of fault for nonparties: 15 (a) May only be used for accurately determining the fault of 16 the named parties; 17 (b) Does not subject any nonparty to liability in the action 18 where the assessment is made; and 19 (c) May not be introduced as evidence of liability in any other 20 action. 21 7. Where recovery is allowed against more than one defendant 22 in such an action , [, except as otherwise provided in subsection 5,] 23 each defendant is severally liable to the plaintiff only for that 24 portion of the judgment which represents the percentage of 25 negligence attributable to that defendant. 26 [5. This section does not affect the joint and several liability, if 27 any, of the defendants in an action based upon: 28 (a) Strict liability; 29 (b) An intentional tort; 30 (c) The emission, disposal or spillage of a toxic or hazardous 31 substance; 32 (d) The concerted acts of the defendants; or 33 (e) An injury to any person or property resulting from a product 34 which is manufactured, distributed, sold or used in this State. 35 6. As used in this section: 36 (a) “Concerted acts of the defendants” does not include 37 negligent acts committed by providers of health care while working 38 together to provide treatment to a patient. 39 (b) “Provider of health care” has the meaning ascribed to it in 40 NRS 629.031.] 41 Sec. 4. Chapter 42 of NRS is hereby amended by adding 42 thereto a new section to read as follows: 43 Except as otherwise provided in NRS 42.021, in any civil action 44 for personal injury caused by wrongful act, neglect or default of 45 – 5 – - *SB363* another, damages for medical expenses may only be awarded by 1 the trier of fact as follows: 2 1. Damages for past medical expenses that have been paid 3 must not exceed the amount paid, regardless of the source of 4 payment. 5 2. Damages for past medical expenses that are unpaid must 6 not exceed: 7 (a) If the plaintiff has health insurance: 8 (1) The amount that the health insurance is obligated to 9 pay to satisfy the charges for the medical treatment; and 10 (2) The share of medical expenses that the plaintiff is 11 required to pay under the health insurance policy. 12 (b) If the plaintiff has health insurance but obtains medical 13 treatment on a lien basis or otherwise does not submit any charges 14 for medical treatment to the insurance company: 15 (1) Evidence of the amount that the health insurance would 16 have paid under the health insurance policy to satisfy the past 17 unpaid charges for medical treatment; and 18 (2) The share of medical expenses that the plaintiff would 19 have been entitled to under the health insurance policy. 20 (c) If the plaintiff does not have health insurance or has 21 coverage through Medicare or Medicaid, not more than 120 22 percent of: 23 (1) The Medicare reimbursement rate in effect on the date 24 of the medical treatment received by the plaintiff; or 25 (2) The applicable Medicaid reimbursement rate in effect 26 on the date of the medical treatment received by the plaintiff, if 27 there is not an applicable Medicare reimbursement rate for the 28 treatment. 29 3. Damages for any future medical expenses that the plaintiff 30 will incur must not exceed, if at the time of trial the plaintiff: 31 (a) Has health insurance or is eligible for health insurance: 32 (1) The amount for which the future medical expenses 33 could be satisfied if submitted to the health insurance; and 34 (2) The share of medical expenses under the health 35 insurance policy that the plaintiff would be entitled. 36 (b) Does not have health insurance or is insured through or 37 eligible for Medicare or Medicaid, not more than 120 percent of: 38 (1) The Medicare reimbursement rate in effect at the time 39 of trial for the future medical treatment the plaintiff; or 40 (2) The applicable Medicaid reimbursement rate in effect at 41 the time of trial for the future medical treatment of the plaintiff, if 42 there is not an applicable Medicare reimbursement rate pursuant 43 to subparagraph (1). 44 – 6 – - *SB363* Sec. 5. NRS 616C.380 is hereby amended to read as follows: 1 616C.380 1. If a hearing officer, appeals officer or district 2 court renders a decision on a claim for compensation and the insurer 3 or employer appeals that decision, but is unable to obtain a stay of 4 the decision: 5 (a) Payment of that portion of an award for a permanent partial 6 disability which is contested must be made in installment payments 7 until the claim reaches final resolution. 8 (b) Payment of the award must be made in monthly installments 9 of 66 2/3 percent of the average wage of the claimant until the claim 10 reaches final resolution if the claim is for more than [Text truncated for display. Full text available on LegiScan.]