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One of the final legislative acts of 2006-2007 session was the passage of a Wrongful Death bill (S-176) that expanded the damages recoverable under the Wrongful Death statute from pecuniary losses only to damages arising out of mental anguish, emotional pain and suffering, loss of society and loss of consortium.

Because only pecuniary losses were available, the Wrongful Death statute was criticized for measuring an individual’s worth by his or her financial contributions to a family and, in practice, failing to assign a value to the lives of children, the elderly and those who worked within the home.  On the other hand, the Act eased the financial strain that an unexpected death could cause a family, and judicial interpretations of the statute allowed an estate to recover the monetary value of services provided, for example, by those who worked inside the home (such as accounting expenses if the deceased handled the bills or the prospective cost of maid and landscaping services if the deceased took care of the home) and those who provided valuable counseling services (such as psychiatric expenses if the deceased provided comparable services or expenses for a business advisor if the deceased had previously been relied upon to provide such advice).

Despite passing the Senate and Assembly, Governor Corzine vetoed the bill, expressing concern that unlimited damages based on emotional anguish or pain and suffering could have a significant impact on state and local budgets.  Indeed, it was reported that 544 wrongful death claims were asserted against departments and agencies of the State between 1996 and June 2007.

Governor Corzine further expressed concern that the bill might chill business development in the state, deterring businesses from coming to or staying in New Jersey.  In this regard, many opposed to the bill were especially concerned with the already exorbitant costs of liability insurance for obstetricians, who thus far had been practically insulated from wrongful death liability for deaths arising out of complications during pregnancies or childbirth. The Governor suggested the Legislature continue its efforts to reform the Wrongful Death statute to avoid using a strict monetary valuation of a person’s life while also addressing the adverse effect of allowing unlimited and unpredictable damages.

The Governor suggested the Legislature provide for governmental immunity, more flexibility of the judiciary to reduce excessive non-pecuniary damages award, and defining “non-pecuniary damages” less expansively.

Before the Governor’s veto, the same bill was pre-introduced in the Legislature for the current 2008-2009 legislative session (which introduction would have been moot if the Governor signed the 2007-2008 bill into law).  Therefore, the 2008-2009 bill is currently in the same form as it was during the 2006-2007 session, and largely as it was since it was first introduced in September 27, 2004 by Senator Joseph V. Doria, Jr. of Hudson County.  No action has been taken yet to refine the bill, but such measures may occur from time to time during the upcoming session.

This blog will be updated as new activity on this topic occurs within the Legislature.