Tort & Insurance Newsletter – Dec 2013 Part 2

 Tennessee Legislature Further Limits Joint and Several Liability

This summer, the Tennessee Legislature further cemented the position that joint and several liability is abolished in almost all circumstances in Tennessee.  This occurred through enacting a new statute (Tenn. Code Ann. § 29-11-107) and overruling at least two Tennessee Supreme Court cases.  Those cases allowed certain defendants to be financially responsible for others’ fault.  As a result of this new legislation, there are now only two exceptions in Tennessee where joint and several liability still applies:

• Cases involving civil conspiracy among two or more at-fault defendants.
• Cases against manufacturers in a product liability action based on strict liability or breach of warranty theories.

Otherwise, if multiple defendants are found liable in a civil case governed by comparative fault, a defendant will only be liable for the percentage of damages attributed to that defendant’s fault.  No defendant will be held jointly liable for damages. However, the statute does not eliminate any party’s claim for contribution or indemnity and it does not prevent allocation of fault to non-parties.

While this new legislation may be a victory for defendants, it is important to note that the statute does have limits.  Specifically, it does not eliminate traditional claims for vicarious liability or respondeat superior. Instead, these types of claims must be reviewed under the law of agency and the existing legal framework.

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Tort Insurance Newsletter Dec 2013 Issue