Increased Caps & Additional Wrongful Death Claimants

A Reminder for Our Legal Community

One crucial reminder comes to mind as we reflect on the first half of 2024 and all the legislative accomplishments already achieved: taking full advantage of the cap increases and additions of wrongful death claimants.

These changes secured at the capital may significantly impact the outcomes of future cases as well as current ones. To that end, here are key details and timelines to keep in mind.

Important Filing Information

If you have cases in which you’ve not yet filed suit and can wait until after January 1, 2025 (but before January 1, 2026), you can take advantage of the new cap increases.

Non-Economic Damages Cap Increases

General Liability

The cap for non-economic damages will increase to $1,500,000 on January 1, 2025. This new cap applies to claims filed on or after that January date and any claim for relief that accrues on or after that date but before the start of 2026.

There will be an inflation adjustment on January 1, 2028 (calculated from the 2025 baseline), with subsequent adjustments occurring every two years on January 1. Adjustments will apply to claims that accrue on or after the adjustment date.

Medical Malpractice

The cap for non-economic damages in medical malpractice cases will increase to $875,000, phased in over five years with increments of $115,000 annually until January 1, 2029.

The first increase, to $415,000, applies to claims filed:

• On or after January 1, 2025, and
• Before January 1, 2026, or
• Any claim for relief that accrues on or after January 1, 2026

Subsequent phased-in adjustments apply to claims that accrue on or after the adjustment date.

Regarding inflation, the first adjustment will be on January 1, 2030, calculated from the 2028 baseline, with subsequent adjustments every two years on January 1. These adjustments apply to claims that accrue on or after the adjustment date.

It’s important to note that the soft cap is 125% of wrongful death damages once those damages exceed $1 million.

Wrongful Death Damages Cap Increases

General Liability

The cap for wrongful death damages is increasing to $2,125,000 on January 1, 2025. This cap applies to:

• Claims filed on or after January 1, 2025, and before January 1, 2026, or
• Any claim for relief that accrues on or after January 1, 2025

The first adjustment for wrongful death damage caps will be on January 1, 2028, calculated from the 2025 baseline. Again, subsequent adjustments will be made every two years on January 1 and apply to claims that accrue on or before the adjustment date.

The scope of wrongful death claims has also changed and now includes siblings and their heirs.

Medical Malpractice

The cap for wrongful death damages in medical malpractice cases will increase to $1,575,000, phased in over five years with increments of $255,000 annually until January 1, 2029.

The first increase, to $555,000, applies to any claim for relief accruing on or after January 1, 2026. Subsequent phased-in increases apply to claims accruing on or after the adjustment date.

The first inflation adjustment will be on January 1, 2030, calculated from 2028, with subsequent adjustments every two years on January 1. The adjustments will apply to claims that accrue on or after the adjustment date.

As with non-economic damages, the soft cap is 125% of wrongful death damages after those damages have exceeded $1 million.

The scope of wrongful death claims in medical malpractice cases now includes siblings and their heirs.

Committed to Keeping You Informed

The JBP personal injury team is dedicated to keeping its clients informed and up-to-date and maximizing these historic legislative changes to their advantage. Click here for the full text of the signed act of House Bill 24-1472.  If you have any questions about these cap increases or are curious about how they might affect your case, we’re here to help.