- Increase in Non-economic Damages Cap:
- California has updated the cap on non-economic damages for medical malpractice claims. As of January 1, 2023, the cap for non-economic damages increased to $350,000. This cap is set to incrementally increase by $40,000 each year until it reaches $750,000. This change was enacted through AB 35, signed by Governor Gavin Newsom in May 2022, marking the first significant adjustment since MICRA was established in 1975.
- Impact on Mediation:
- With the increase in non-economic damages, there’s a potential shift in how mediation is approached. The higher cap might encourage more settlements through mediation as it provides an opportunity for plaintiffs to achieve a higher compensation for pain and suffering, loss of consortium, and other non-economic damages without going to trial.
- Mediation as a Preferred Method:
- Mediation continues to be a highly utilized method for resolving medical malpractice disputes in California due to its benefits:
- Control Over Outcome: Parties have more control over the settlement terms than in a courtroom scenario.
- Cost and Time Efficiency: Mediation often reduces the time and costs associated with legal battles, offering quicker resolutions.
- Confidentiality: Mediation sessions are private and confidential, which can be advantageous for all parties involved, particularly healthcare providers concerned about public perception or reputation.
- Mediation continues to be a highly utilized method for resolving medical malpractice disputes in California due to its benefits:
- Strategic Mediation Practices:
- There’s an emphasis on strategic preparation for mediation, including:
- Mediation Briefs: Attorneys are encouraged to provide detailed mediation briefs to outline the case’s strengths and weaknesses to both the mediator and the opposing side, fostering a more informed discussion.
- Acknowledging Case Weaknesses: It’s advised to openly discuss case weaknesses with the mediator to focus the negotiation on stronger aspects, potentially leading to more productive settlement talks.
- There’s an emphasis on strategic preparation for mediation, including:
- Broader Context:
- The legislative changes reflect a broader national trend where states are re-evaluating their malpractice laws to balance patient rights with the affordability of healthcare. This adjustment in California is part of ongoing discussions about how best to manage malpractice claims without overburdening the medical system or limiting patient access to justice.
These updates illustrate California’s approach to modernizing its medical malpractice framework, making mediation an even more critical tool in dispute resolution. If you’re involved in or considering mediation for a medical malpractice case, these changes could significantly impact the settlement discussions.