Lawyer Commentary JD Supra United States Tennessee Supreme Court Accepts Certification of Non-Economic Damages Cap Question

Tennessee Supreme Court Accepts Certification of Non-Economic Damages Cap Question

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On June 19, 2019, the Supreme Court of Tennessee accepted certification of three questions of law relating to Tennessee's statutory non-economic damages cap. The certification follows on the heels of a decision from a divided panel of the U.S. Court of Appeals for the Sixth Circuit holding that Tennessee's separate statutory cap on punitive damages violates the right to trial by jury under the Tennessee Constitution. Litigants hoping for additional clarity following the Sixth Circuit's decision should anticipate a ruling from the Supreme Court within the next six to nine months directly addressing the constitutionality of Tennessee's non-economic damages cap.

The Supreme Court's June 19, 2019 Order accepted certification of three questions from the United States District Court for the Middle District of Tennessee in Jodi McClay v. Airport Management Services, LLC, No. 3:17-cv-00705. The plaintiff in McClay filed suit against the defendant, an operator of a retail store in the Nashville Airport, after a wooden panel in the store fell and struck the plaintiff's foot. Following a trial, the jury returned a verdict awarding the plaintiff $444,500.00 in economic damages and $930,000.00 in non-economic damages.

The defendant asked the court to apply Tennessee's non-economic damages cap, which limits non-economic damages to $750,000.00. See Tenn. Code Ann. §§ 29-39-102(a)-(e). The plaintiff objected, arguing that the damages cap violated the right to a trial by jury, amounted to an impermissible exercise of judicial powers by the Tennessee legislature, and, in an unusual argument, disproportionally discriminated against women, all in violation of the Tennessee Constitution. The plaintiff's objection cited the Sixth Circuit's recent decision in Lindenberg v. Jackson Nat'l Life Ins. Co., 912 F.3d 348 (6th Cir. 2018), which held that Tennessee's statutory cap on punitive...

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