Administrative Services, Risk Management

Rule R37-4

Adjusted Utah Governmental Immunity Act Limitations on Judgments

Notice of Proposed Rule

(Amendment)

DAR File No.: 35844
Filed: 02/03/2012 04:54:27 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment is required by Subsection 63G-7-604(4).

Summary of the rule or change:

This amendment increases the limit for personal injury damages against a governmental entity from $648,700 to $674,000 per person/per occurrence, and from $2,221,700 to $2,308,400 in the aggregate. The limit for property damages against a governmental entity is also increased from $259,500 to $269,700 in any one occurrence. These amendments will be effective 07/01/2012.

State statutory or constitutional authorization for this rule:

• Subsection 63G-7-604(4)

Anticipated cost or savings to:

the state budget:

In general, there is the potential for a 3.9% increase in personal injury and property damage awards during the next two fiscal years; however, it is impossible to calculate or estimate the aggregate anticipated costs that may arise due to this amendment, because those costs will be based upon the unique facts and applicable laws associated with claims that will arise in FY 2013 and 2014.

local governments:

Because this amendment affects local government entities, it will have the same impact on them, namely the potential for a 3.9% increase in personal injury and property damage awards during the next two fiscal years. As indicated above, it is impossible to calculate or estimate the aggregate costs that may arise due to this amendment, because those costs will be based upon the unique facts and applicable laws associated with claims that will arise in FY 2013 and 2014.

small businesses:

Because this amendment increases the limitation on judgments, it may favor small businesses that have legitimate claims against the State of Utah and its political subdivisions.

persons other than small businesses, businesses, or local governmental entities:

Because this amendment increases the limitations on judgments, it may favor persons who have legitimate claims against the State of Utah and its political subdivisions.

Compliance costs for affected persons:

This amendment does not impose any compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

Businesses that have legitimate causes of action against the state and its political subdivisions may have the benefit of increased limits on damages as a result of this amendment.

Kimberly K. Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Risk Management
Room 5120 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Stephen Hewlett at the above address, by phone at 801-538-9572, by FAX at 801-538-9597, or by Internet E-mail at shewlett@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

04/02/2012

This rule may become effective on:

04/09/2012

Authorized by:

Tani Downing, Director

R37. Administrative Services, Risk Management.

R37-4. Adjusted Utah Governmental Immunity Act Limitations on Judgments.

R37-4-1. Authority and Calculation Process.

Pursuant to UCA 63G-7-604(4) [(formerly 63-30d-604(4)(b))] the Risk Manager hereby establishes a new limitation of judgment.

Accordingly, the Risk Manager has calculated the consumer price index (CPI) for calendar years [2007 and] 2009 and 2011 using the standards provided in Sections 1(f)(4) and 1 (f)(5) of the Internal Revenue Code. Section 1(f)(4) has defined the CPI for any calendar year to mean the average of the consumer price index as of the close of the 12-month period ending on August 31 of such calendar year. Section 1(f)(5) has defined "consumer price index" to mean the index used for all-urban consumers published by the Department of Labor. By applying these standards, the consumer price index for the calendar year [2007]2009 is calculated to be [204.87]214.00 and the index for [2009]2011 is [214.00]222.43. The percentage difference between the [2007 index and the] 2009 index and the 2011 index was then computed to be [4.5%]3.9%.

 

R37-4-2. New Limitation of Judgment Amounts.

As a result of the above required calculations, the new limitation of judgment amounts currently required by UCA 63G-7-604(1) has been increased as follows, and is effective July 1, [2010]2012 for claims occurring on or after that date:

1) The limit for damages for personal injury against a governmental entity, or an employee who a governmental entity has a duty to indemnify, is [$648,700]$674,000 for one person in any one occurrence, and [$2,221,700]$2,308,400 aggregate amount of individual awards that be may awarded in relation to a single occurrence; and

2) The limit for property damages (excluding damages awarded as compensation when a governmental entity has taken or damaged private property for public use without just compensation) against a governmental entity, or an employee whom a governmental entity has a duty to indemnify is [$259,500]$269,700 in any one occurrence.

 

R37-4-3. Limitations of Judgments by Calendar Date.

The limitation on judgments are established by the date of the occurrence. The dates and dollar amounts are as follows:

1) Incident(s) occurring before July 1, 2001 - $250,000 for one person in an occurrence, $500,000 aggregate for two or more persons in an occurrence; and $100,000 for property damage for any one occurrence as explained in R37-4-2(2).

2) Incident(s) occurring on or after July 1, 2001 - $500,000 for one person in an occurrence, $1,000,000 aggregate for two or more persons in an occurrence; and $200,000 for property damage for any one occurrence as explained in R37-4-2(2).

3) Incident(s) occurring on or after July 1, 2002 - $532,500 for one person in an occurrence, $1,065,000 aggregate for two or more persons in an occurrence; and $213,000 for property damage for any one occurrence as explained in R37-4-2(2).

4) Incident(s) occurring on or after July 1, 2004 - $553,500 for one person in an occurrence, $1,107,000 aggregate for two or more persons in an occurrence, and $221,400 for property damage for any one occurrence as explained in R37-4-2(2).

5) Incident(s) occurring on or after July 1, 2006 - $583,900 for one person in an occurrence, $1,167,900 aggregate for two or more persons in an occurrence, and $233,600 for property damage for any one occurrence as explained in R37-4-2(2).

6) Incident(s) occurring on or after July 1, 2007 - $583,900 for one person in an occurrence, $2,000,000 aggregate for two or more persons in an occurrence, and $233,600 for property damage for any one occurrence as explained in R37-4-2(2).

7) Incident(s) occurring on or after July 1, 2008 - $620,700 for one person in an occurrence, $2,126,000 aggregate for two or more persons in an occurrence, and $248,300 for property damage for any one occurrence as explained in R37-4-2(2).

8) Incident(s) occurring on or after July 1, 2010 - $648,700 for one person in an occurrence, $2,221,700 aggregate for two or more persons in an occurrence, and $259,500 for property damage for any one occurrence as explained in R37-4-2(2).

9) Incident(s) occurring on or after July 1, 2012 - $674,000 for one person in an occurrence, $2,308,400 aggregate for two or more persons in an occurrence, and $269,700 for property damage for any one occurrence as explained in R37-4-2(2).

 

KEY: limitation on judgments, risk management, governmental immunity act caps

Date of Enactment or Last Substantive Amendment: [June 1, 2010]2012

Notice of Continuation: October 9, 2007

Authorizing, and Implemented or Interpreted Law: 63G-7-604(4)