Calif. malpractice cap cuts lawsuits

SACRAMENTO, Dec. 29 (UPI) -- Malpractice lawsuits in California appear to have dropped significantly since the state capped pain and suffering awards, The Los Angeles Times reports.

Filings have dropped 48 percent in Los Angeles and 29 percent in Orange County since 2001. The number of suits filed is down in eight of the 10 largest counties that track them, the Times said its survey found.

The number of payments to victims of malpractice or their families has dropped 24 percent since 1991, more than twice the national drop of 10 percent.

Malpractice premiums have risen by one-third the national average, but insurers are getting more revenue from malpractice policies. Since 1991, only 39 cents of every premium dollar has been paid out in claims compared to a national average of 63 cents.

The California law caps pain and suffering at $250,000, although there is no limit on awards for financial losses like the cost of care or lost wages. That means lawyers are less likely to take malpractice cases for low-wage workers or in other cases where the financial losses are comparatively small, like cases where a retiree or a baby dies, rather than suffering a serious injury.