Here is what the passage of AB 35 accomplishes for injured patients in California:
For injured patients: AB 35 increases the previous cap for non-economic damages from $250,000 to $350,000 right away, with incremental increases over 10 years, until the amount reaches $750,000. There is a potential for a separate cap for “unaffiliated health care providers.”
For surviving family members: The cap for wrongful death cases goes from $250,000 to $500,000 right away, with incremental increases over 10 years until the amount reaches $1 million.
For attorneys’ fees: The structured tiers that amount to compensation for your lawyer’s work will change to a cap of 25% of the amounts recovered before filing a complaint or arbitration demand, and 33% of the amounts recovered after filing. If the case is tried or arbitrated, the attorney may petition the court for a higher percentage contingency.
In addition to the initial increases made over 10 years to modernize these award amounts, AB 35 guarantees that the non-economic damages caps increase by 2% each year, to account for inflation. This helps to ensure that the cap never again becomes stagnant and harmful to patients, as it did after the 1975 law was passed.
Non-economic damages are meant to account for truly irreplaceable losses like:
Quality of life reduction for those with permanent injuries
Emotional distress, pain, and suffering
The loss of someone’s love and companionship after a wrongful death
Expanding the cap goes a long way to respect the real anguish and grief experienced by individuals and families. It helps heal past trauma and improve future comfort.