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S. 82
STATUS INFORMATION
General Bill
Sponsors: Senators McConnell, Moore, Campsen, Ryberg, Elliott, Alexander, Gregory, Leatherman, Richardson and Bryant
Document Path: l:\s-jud\bills\mcconnell\jud0036.gfm.doc
Introduced in the Senate on January 11, 2005
Currently residing in the Senate Committee on Judiciary
Summary: Tort Reform Act of 2005 Relating to Venue
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/15/2004 Senate Prefiled 12/15/2004 Senate Referred to Committee on Judiciary 1/11/2005 Senate Introduced and read first time SJ-123 1/11/2005 Senate Referred to Committee on Judiciary SJ-123
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO ENACT THE "TORT REFORM ACT OF 2005 RELATING TO VENUE" BY AMENDING SECTION 15-7-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VENUE FOR A CIVIL ACTION, SO AS TO ESTABLISH PROCEDURES FOR DETERMINING THE PROPER VENUE; TO AMEND SECTION 15-7-100, RELATING TO A CHANGE OF VENUE OF A CIVIL ACTION, SO AS TO PROVIDE THAT WHEN VENUE IS CHANGED AN ACTION IS NOT SUBJECT TO THE PROCEDURES FOR DETERMINING PROPER VENUE; TO AMEND SECTION 36-2-803, RELATING TO PERSONAL JURISDICTION OF THE COURTS, SO AS TO REMOVE THE REQUIREMENT THAT JURISDICTION UNDER THIS SECTION PRECLUDES A CHANGE OF VENUE; AND TO REPEAL SECTION 58-23-90, RELATING TO PROPER VENUE TO BRING AN ACTION AGAINST A LICENSED MOTOR CARRIER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that the sections presented in this act constitute one subject as required by Article III, Section 17 of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of tort and other civil action reform as clearly enumerated in the title.
The General Assembly further finds that a common purpose or relationship exists among the sections, representing a potential plurality but not disunity of topics, notwithstanding that reasonable minds might differ in identifying more than one topic contained in the act.
SECTION 2. Section 15-7-30 of the 1976 Code is amended to read:
"Section 15-7-30. (A) As used in this section:
(1) 'Domestic corporation' means a 'domestic corporation' as defined in Section 33-1-400.
(2) 'Domestic limited partnership' means a 'domestic limited partnership' as defined in Section 33-42-20.
(3) 'Domestic limited liability company' means a 'domestic limited liability partnership' as defined in Section 33-41-1110 with its principal place of business within this State.
(4) 'Domestic limited liability partnership' means a 'domestic limited liability partnership' as defined in Section 33-41-1110 with its principal place of business within this State.
(5) 'Foreign corporation' means a 'foreign corporation' as defined in Section 33-1-400.
(6) 'Foreign limited partnership' means a 'foreign limited partnership' as defined in Section 33-42-20.
(7) 'Foreign limited liability company' means a 'foreign limited liability partnership' as defined in Section 33-41-1150 with its principal place of business outside this State.
(8) 'Foreign limited liability partnership' means a 'foreign limited liability partnership' as defined in Section 33-41-1150 with its principal place of business outside this State.
(9) 'Nonresident individual' means a person who is not domiciled in this State.
(10) 'Principal place of business' means:
(a) the corporation's home office location from which the corporation's officers direct, control, or coordinate its activities within the State;
(b) the location of the corporation's manufacturing, sales, or purchasing facility within the State if the corporation does not have a home office within the State; or
(c) the location at which the majority of corporate activity takes place if the corporation has multiple centers of manufacturing, sales, or purchasing located within the State. The following factors may be considered when determining the location at which the majority of corporate activity takes place:
(i) the number of employees located in any one county;
(ii) the authority of the employees located in any one county;
(iii) the tangible corporate assets that exist in any one county.
(11) 'Resident individual' means a person who is domiciled in this State.
(B) In all other cases not provided for in Sections 15-7-10, 15-7-20, or 15-78-100, and except as provided in Section 15-7-100(C), the action shall must be tried in the county in which the defendant resides at the time of the commencement of the action it properly may be brought and tried against the defendant according to the provisions of this section. If there be is more than one defendant, then the action may be tried in any county in which one or more of the defendants to such action resides at the time of the commencement of the action properly may be maintained against any one of the defendants pursuant to this section. If none of the parties shall reside in the State the action may be tried in any county which the plaintiff shall designate in his complaint. This section is subject however to the power of the court to change the place of trial in certain cases as provided by law.
(C) A civil action tried pursuant to this section against a resident individual defendant must be brought and tried in the county in which the:
(1) defendant resides at the time the cause of action arose; or
(2) most substantial part of the alleged act or omission giving rise to the cause of action occurred.
(D) A civil action tried pursuant to this section against a nonresident individual defendant must be brought and tried in the county in which the most substantial part of the alleged act or omission giving rise to the cause of action occurred.
(E) A civil action tried pursuant to this section against a domestic corporation, domestic limited partnership, domestic limited liability company, or domestic limited liability partnership, must be brought and tried in the county in which the:
(1) corporation, limited partnership, limited liability company, or limited liability partnership has its principal place of business at the time the cause of action arose; or
(2) most substantial part of the alleged act or omission giving rise to the cause of action occurred.
(F) A civil action tried pursuant to this section against a foreign corporation, foreign limited partnership, foreign limited liability company, or foreign limited liability partnership must be brought and tried in the county in which the:
(1) most substantial part of the alleged act or omission giving rise to the cause of action occurred; or
(2) foreign corporation, foreign limited partnership, foreign limited liability company, or foreign limited liability partnership has at its principal place of business at the time the cause of action arose;
(G) Owning property and transacting business in a county is insufficient in and of itself to establish the principal place of business for a corporation for purposes of this section."
SECTION 3. Section 15-7-100 of the 1976 Code is amended to read:
"Section 15-7-100. (A) The court may change the place of trial in the following cases if:
(1) When the county designated for that purpose in the complaint is not the proper county;
(2) When there is reason to believe that a fair and impartial trial cannot be had therein there; and or
(3) When the convenience of witnesses and the ends of justice would be promoted by the change.
(B) When the place of trial is changed, all other proceedings shall must be had in the county to which the place of trial is changed, unless otherwise provided by the consent of the parties in writing duly filed or by order of the court. And the papers shall The pleadings must be filed or transferred accordingly.
(C) If the court changes the place of trial pursuant to the provisions of subsection (A)(3), the action is subject to the provisions of Section 15-7-30."
SECTION 4. Section 36-2-803 of the 1976 Code is amended to read:
"Section 36-2-803. (1) A court may exercise personal jurisdiction over a person who acts directly or by an agent as to a cause of action arising from the person's:
(a) transacting any business in this State;
(b) contracting to supply services or things in the State;
(c) commission of a tortious act in whole or in part in this State;
(d) causing tortious injury or death in this State by an act or omission outside this State if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in this State; or
(e) having an interest in, using, or possessing real property in this State; or
(f) contracting to insure any person, property, or risk located within this State at the time of contracting; or
(g) entry into a contract to be performed in whole or in part by either party in this State; or
(h) production, manufacture, or distribution of goods with the reasonable expectation that those goods are to be used or consumed in this State and are so used or consumed.
(2) When jurisdiction over a person is based solely upon this section, only a cause of action arising from acts enumerated in this section may be asserted against him, and such action, if brought in this State, shall not be subject to the provisions of Section 15-7-100 (3)."
SECTION 5. (A) An insurer licensed to transact business in this State must report to the South Carolina Department of Insurance all savings directly related to a decrease in litigation and claims paid pursuant to litigation after the effective date of this act.
(B) The Department of Insurance shall review data reported on annual statements by liability insurers, including, but not limited to, paid claims, reserves, loss adjustment expenses, and such additional data as the department may require by promulgation of its Bulletins, to determine the amount of savings, if any, related to a decrease in litigation and decrease, if any, in claims paid pursuant to litigation after the effective date of this act. The department may require special reports from insurers to determine if savings are realized as a result of the provisions of this act. The department shall compile a report of savings realized as a result of the provisions of this act and submit it for General Assembly review upon request. Costs or expenses associated with the compilation of this report on savings shall be paid by the insurers pursuant to the provisions of Chapter 13 of Title 38.
The Department of Insurance shall review premium and losses by line of insurance to determine if appropriate adjustments have been made based upon department estimates of savings realized pursuant to the provisions of this act.
SECTION 6. Section 58-23-90 is repealed.
SECTION 7. The provisions of this act do not affect any right, privilege, or provision of the South Carolina Tort Claims Act as contained in Chapter 78, Title 15 of the 1976 Code of South Carolina or the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56 of Title 33.
SECTION 8. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 9. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 10. Upon approval by the Governor, this act takes effect July 1, 2005.
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