H.B. No. 1316, H.D. 2, S.D. 1, C.D. 1: Relating to Torts

Representative Jon Riki Karamatsu

House Journal Written Remarks

May 5, 2009 – Day 59

Conf. Comm. Rep. No. 34

H.B. No. 1316, H.D. 2, S.D. 1, C.D. 1

Relating to Torts

I rise in support of House Bill 1316, House Draft 2, Senate Draft 1, Conference Draft 1.

This bill helps to address the concerns of Hawaii’s design professional companies (professional engineer, architect, surveyor, or landscape architect licensed under chapter 464) in regards to joint and several liability.  In any case involving tort claims relating to the design, construction, and maintenance of highways, where a design professional is determined to be a joint tortfeasor along with one or more other joint tortfeasors, and the degree of negligence of the design professional is ten per cent or less, including the vicarious liability of the design professional for the negligent acts or omissions of the officers and employees of the design professional, the liability of the design professional for more than the design professional’s pro rata share of negligence shall not exceed the available policy limits of the design professional’s professional liability coverage; provided that one of the following applies:

(1)  The contract amount for design professional services relating to the tort claim is $500,000 or less and the design professional is covered for the claim by a professional liability insurance policy with limits of no less than $1,000,000 per occurrence and $1,000,000 in the aggregate; or

(2)  The contract amount for design professional services relating to the tort claim is $1,000,000 or less and the design professional is covered for the claim by a professional liability insurance policy with limits of no less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

This section of the law shall not apply to any design professional with a gross annual revenue of $10,000,000 or more during any of the three calendar years immediately preceding the effective date of the contract for design professional services relating to the tort claim.  Information produced pursuant to this section relating to gross revenue shall be confidential and used only for purposes of this section unless otherwise ordered by the court.  Thank you.