Constitutionality of the Statutory Cap on Noneconomic Damages Upheld by Oregon Supreme Court

On February 22, the Oregon Supreme Court upheld the constitutionality of the statutory cap on noneconomic damages (ORS 31.710) as applied to claims for wrongful death. In Hughes v. PeaceHealth, ___ Or ___, ___ P3d ___ (SC S053447, Feb. 22, 2008), the decedent's mother filed suit against PeaceHealth Medical Group for the wrongful death of her daughter while under the defendant's medical care. The jury returned a verdict awarding plaintiff, inter alia, $1 million in noneconomic damages. In entering the judgment, the trial court applied ORS 31.710, reducing noneconomic damages to $500,000. The plaintiff appealed, contending that application of the statutory cap on noneconomic damages violates two provisions of the Oregon Constitution—the Remedy Clause (Article I, section 10) and the Right-to-a-Jury-Trial Clause (Article I, section 17).

The Court of Appeals rejected those challenges. 204 Or App 614, 131 P3d 70, relying 98 (2006). The court relied mostly on the Supreme Court's decision in Greist v. Phillips, 322 Or 281, 906 P2d 789 (1995), in which the Court had rejected nearly identical constitutional challenges. The plaintiff sought review, arguing that the Supreme Court had erred in its prior Remedy Clause analysis, and noting that the Court had subsequently overruled some of its jury-trial analysis.

(Our thanks to DRI member Lisa E. Lear of Bullivant Houser Bailey PC in Portland for supplying this information.)