BERNICE BERNIER, Appellee, v. ROLAND W. BURRIS, State Comptroller et al., Appellants.
No. 62876
Supreme Court of Illinois
June 20, 1986
Rehearing denied September 26, 1986
113 Ill. 2d 219
JUSTICE MILLER
SIMON, J., took no part.
RYAN, J., concurring in part and dissenting in part.
Leonard M. Ring and Associates, of Chicago (Leonard M. Ring and Leslie J. Rosen, of counsel), for appellee.
Mark D. Deaton and Daniel J. Mulvanny, of Naperville, for amicus curiae Illinois Hospital Association.
Saul J. Morse & Associates, Ltd., of Springfield (Saul J. Morse, of counsel); Winston & Strawn, of Chicago (Calvin Sawyier, Clive Topol and Mark Van Cura, of counsel); and Friedman & Koven, of Chicago (John B. Simon and Russ M. Strobel, of counsel), for amicus curiae Illinois State Medical Society.
D. Kendall Griffith and Dennis J. Horan, of Hinshaw, Culbertson, Moelmann, Hoban & Fuller, of Chicago, for amicus curiae Metropolitan Chicago Healthcare Council.
Peter M. Sfikas and Larry R. Eaton, of Chicago (Peterson, Ross, Schloerb & Seidel, of counsel), for amici curiae American Dental Association and Illinois State Dental Society.
John M. Cannon, Susan W. Wanat and Ann Plunkett Sheldon, of Chicago, for amicus curiae Mid-America Legal Foundation.
Susan W. McGrath and William D. McGrath, of McGrath & McGrath, of Champaign, for amicus curiae Champaign County Health Care Consumers.
Asher, Pavalon, Gittler and Greenfield, Ltd., and Anesi, Ozmon, Lewin & Associates, Ltd., all of Chicago (Nat P. Ozmon, Lester Asher, Eugene I. Pavalon, Paul J. Bargiel, William A. Geiser and Richard A. Kimnach, of counsel), for amici curiae the Illinois State Federation of Labor and Congress of Industrial Organizations et al.
Philip H. Corboy, of Chicago, for amicus curiae the Chicago Bar Association.
Carl J. Schroeder and Ralph R. Hruby, of Carl F. Schroeder, Ltd., of Wheaton, for amicus curiae Illinois Public Action Council.
Robert J. Glenn and David A. Novoselsky, of Chicago, for amicus curiae Illinois Trial Lawyers Association.
Richard S. Fleisher, David A. Novoselsky and Todd A. Smith, of Chicago, for amicus curiae People‘s Medical Society.
Robert A. Clifford & Associates, of Chicago (Robert A. Clifford and Robert P. Sheridan, of counsel), for amicus curiae Consumer Health Resource Center.
John C. Wunsch, of Chicago (Patrick G. Reardon and Stephen M. Connolly, of counsel), for amicus curiae the Illinois State Council of Senior Citizens.
JUSTICE MILLER delivered the opinion of the court:
The plaintiff, Bernice Bernier, brought this action in the circuit court of Cook County challenging the constitutionality of various provisions of Public Act 84-7. Approved June 25, 1985, and effective August 15, 1985, Public Act 84-7 made a number of significant changes to the Code of Civil Procedure (
The plaintiff, a resident and taxpayer of Cook County, instituted her action as a taxpayer‘s suit on July 3, 1985. Named as defendants in the action were various State officials, and the complaint sought to enjoin the disbursement and expenditure of public funds for carrying out the various provisions in Public Act 84-7. By her amended complaint the plaintiff attacked the constitutionality of five parts of the legislation—those establishing a system of review panels, providing for the periodic payment of future damages, modifying the collateral-source rule, prohibiting awards of punitive damages, and limiting the amounts of contingent fees. Following an extensive evidentiary hearing, in which both the plaintiff and the defendants presented testimony on the nature and extent of the medical malpractice crisis and the effect that the provisions here may have on litigants, the trial judge found that all five parts challenged by the plaintiff violated a number of State and Federal constitutional guarantees.
Public Act 84-7 amended sections 2-1109, 2-1205, 8-2001, and 8-2003 of the Code of Civil Procedure (
We note at the outset that “[t]here is, as this court has frequently emphasized, a strong presumption that legislative enactments are constitutional (People v. Greene (1983), 96 Ill. 2d 334, 338; Cronin v. Lindberg (1976), 66 Ill. 2d 47, 58), and one who asserts otherwise has the burden of clearly establishing the constitutional violation (Polyvend, Inc. v. Puckorius (1979), 77 Ill. 2d 287, 303; People v. Dale (1950), 406 Ill. 238, 244.).” (Sayles v. Thompson (1983), 99 Ill. 2d 122, 124-25.) Because many of the provisions challenged here are attacked on the same grounds, as violating the due process and equal protection guarantees of both the State and Federal constitutions (see
The rational-basis test generally has been applied in testing the constitutionality of medical malpractice legislation under guarantees of due process and equal protection. (See Smith, Battling a Receding Tort Frontier: Constitutional Attacks on Medical Malpractice Laws, 38 Okla. L. Rev. 195, 202-12 (1985).) Two notable exceptions, however, are found in Carson v. Maurer (1980), 120 N.H. 925, 424 A.2d 825, and Arneson v. Olson (N.D. 1978), 270 N.W.2d 125. In Carson the Supreme Court of New Hampshire held, as a matter of State constitutional law, that the appropriate standard to use in assessing the equal-protection challenges there was “whether the challenged classifications are reasonable and have a fair and substantial relation to the object of the legislation.” (120 N.H. 925, 932-33, 424 A.2d 825, 831.) Applying that
We decline to follow Carson and Arneson in applying to medical malpractice legislation a standard stricter than rationality review. We do not believe that the provisions in question implicate a suspect or quasi-suspect classification, and accordingly the appropriate standard for determining the plaintiff‘s equal protection challenges under the Illinois and Federal constitutions is whether the legislation bears a rational relationship to a legitimate governmental interest. (McDonald v. Board of Election Commissioners (1969), 394 U.S. 802, 809, 22 L. Ed. 2d 739, 745, 89 S. Ct. 1404, 1408; Illinois Housing Development Authority v. Van Meter (1980), 82 Ill. 2d 116, 119-20.) This standard applies as well to the additional argument that the provisions violate the State constitutional prohibition against special legislation (Jenkins v. Wu (1984), 102 Ill. 2d 468, 477-78; Anderson v. Wagner (1979), 79 Ill. 2d 295, 315), for although the guarantee of equal protection and the prohibition against special legislation are not identical, they are “generally judged by the same standard” (Chicago National League Ball Club, Inc. v. Thompson (1985), 108 Ill. 2d 357, 368). Similarly, we do not believe that the provisions here burden a fundamental right, and for our purposes here the appropriate inquiry under due process is whether the legislation bears a rational relationship to a legitimate
The history of the legislation amply demonstrates that it was enacted in response to what was perceived to be a crisis in the area of medical malpractice. Whether a malpractice crisis existed at all was disputed by the plaintiff in the circuit court, however, and the trial judge expressly found that there was no crisis and that the provisions challenged here were therefore unnecessary. The plaintiff and several amici urge those points in this court as well. Their argument is similar to the reasoning employed in Boucher v. Sayeed (R.I. 1983), 459 A.2d 87, where the Supreme Court of Rhode Island tested medical malpractice legislation under the rational-basis standard but took judicial notice that no malpractice crisis existed in 1981, when the provisions were enacted. The court therefore held that the provisions violated equal protection, concluding, “Absent a crisis to justify the enactment of such legislation, we can ascertain no satisfactory reason for the separate and unequal treatment that it imposes on medical malpractice litigants.” (459 A.2d 87, 93.) The appropriate degree of deference in this regard was explained in Minnesota v. Clover Leaf Creamery Co. (1981), 449 U.S. 456, 464, 66 L. Ed. 2d 659, 668-69, 101 S. Ct. 715, 724, where the court said:
“But States are not required to convince the courts of the correctness of their legislative judgments. Rather, ‘those challenging the legislative judgment must convince the court that the legislative facts on which the classification is apparently based could not reasonably be conceived to be true by the governmental decisionmaker.’ Vance v. Bradley [(1979), 440 U.S. 93, 111, 59 L. Ed. 2d 171, 184-85, 99 S. Ct. 939, 949-50]. [Citations.]
Although parties challenging legislation under the Equal Protection Clause may introduce evidence support
ing their claim that it is irrational, United States v. Carolene Products Co. [(1938), 304 U.S. 144, 153-54, 82 L. Ed. 1234, 1242, 58 S. Ct. 778 784], they cannot prevail so long as ‘it is evident from all the considerations presented to [the legislature], and those of which we may take judicial notice, that the question is at least debatable.’ [304 U.S. 144, 154, 82 L. Ed. 1234, 1243, 58 S. Ct. 778, 784.] Where there was evidence before the legislature reasonably supporting the classification, litigants may not procure invalidation of the legislation merely by tendering evidence in court that the legislature was mistaken.”
It may fairly be said that whether a malpractice crisis existed was a question “at least debatable.” Our task, therefore, is limited to determining whether the legislation in question is constitutional, not whether it is wise as well. See In re J.S. (1984), 103 Ill. 2d 395, 407.
I
The plaintiff first challenges the provisions for review panels in cases of healing-art malpractice; these are set out in sections 2-1012 through 2-1020 of the Code of Civil Procedure (
The legislation in question provides, as a prerequisite to trial in a case for healing-art malpractice, that a panel composed of a circuit judge, a practicing attorney, and a health-care professional must convene and make a determination regarding liability and, if liability is found, damages. Procedures are set out for maintaining rosters of judges, attorneys, and health-care professionals from which the parties select the panel members. (See
Proceedings before the panel are to be conducted in an adversary manner, and the parties and the panel may call and examine witnesses (see
In Wright v. Central Du Page Hospital Association (1976), 63 Ill. 2d 313, this court invalidated a system of screening panels for medical malpractice cases. The provisions considered in Wright, sections 58.2 through 58.10 of the Civil Practice Act (
The defendants would distinguish the panel procedures at issue here from those that were found unconstitutional in Wright. In Wright the judicial member of the panel was to determine all procedural issues, including matters of evidence, and the law of evidence was to be followed unless the panel in its discretion determined otherwise (see
Because the current provisions make the judicial member of the panel the sole authority over legal issues, the defendants believe that the panel procedures here may be distinguished from those in Wright. Although the provisions here are different in several respects from those construed by the court in Wright, we do not believe that the current provisions eliminate entirely the problem that concerned the court in Wright. The problem described in Wright—that the judicial member of the panel was forced to share his authority with the nonjudicial members—did not arise simply because the panel as a whole made legal and factual determinations. Rather, Wright was concerned that the nonjudicial members of the panel were given a judicial role, and the court there noted that the nonjudicial members of the panel could make determinations, either legal or factual, contrary to those reached by the judge. For that reason, the court found that the nonjudicial members of the panel were empowered “to exercise a judicial function in violation of sections 1 and 9 of article VI of the Constitution.” Wright v. Central Du Page Hospital Association (1976), 63 Ill. 2d 313, 322.
A problem similar to that in Wright inheres in the panel procedures at issue here. Under these provisions, the role of the judicial member of the panel must take one of two forms. Either he serves on the panel in his judicial capacity but is forced to share, with the two nonjudicial members, his judicial authority to make factual determinations, or he is denied his judicial authority and has no greater authority than the two other panel mem
For the reasons indicated, we conclude that the procedures for review panels, set out in sections 2-1012 through 2-1020, are unconstitutional. Given this result, we need not consider the plaintiff‘s remaining arguments against the provisions.
II
The plaintiff also challenges the provisions allowing the periodic payment of certain damages, set out in sections 2-1701 through 2-1719 of the Code of Civil Procedure (
The provisions, applicable to actions for healing-art malpractice (see
If the procedures apply in a case, the trier of fact is to make several special findings regarding both past damages and future damages, and must further specify as future damages medical and other health-care costs, other economic losses, and noneconomic loss. Under these provisions, economic loss is defined in terms of pecuniary harm, and noneconomic loss includes loss of consortium and all nonpecuniary harm for which damages are recoverable, including damages for pain and suffering (see
The trier of fact is to compute the future damages without reducing them to present value, and in a jury case, the jury must be instructed to this effect. (See
“The court shall determine the amount of future damages to be awarded in equivalent lump sum. This amount shall be that part of the equivalent lump sum value of future damages which does not exceed $250,000. *** The amount of future damages awarded in equivalent lump sum shall be added to the total amount of past damages recoverable and this total shall be known as the present award. The periodic award shall consist of the total amount of future damages without reduction to an equivalent lump sum value, reduced in the proportion that the equivalent lump sum value of the amount of future damages included in the lump sum present award bears to the equivalent lump sum value of the total amount of future damages.”
Adequate security must be posted by a defendant who is liable for a periodic award. See
The circuit judge found that the provisions denied the right to trial by jury as guaranteed by the Illinois Constitution (see
It is a well-recognized principle that a litigant does not have an indefeasible interest in the continuation of a particular remedy or mode or form of recovery. (See Grasse v. Dealer‘s Transport Co. (1952), 412 Ill. 179, 190.) Moreover, the only changes effected by the provisions in question here concern the computation and payment of future damages. Many States have enacted provisions allowing for the periodic payment of future damages in medical malpractice cases. (See, e.g.,
We do not believe that the provisions interfere with the right to trial by jury. The jury is to continue to make all damage computations; the only change in the jury‘s function from the traditional rule is that the jury is instructed not to reduce the amounts to present value, and the statute provides the discount factor that the trial court must use for that purpose. But this is no greater impediment to the jury-trial right than a statute setting a predetermined interest rate for judgments. Nor is the right to trial by jury diminished by section 2-1719(3), which purports to require the Director of the Department of Insurance to “publish[ ] prior to January 1 of each year the rate of discount per annum set out in subsection (c) of Section 2-1709” (
The plaintiff also finds violations of equal protection and due process in the provisions in question here. Specifically, the plaintiff points to the use of a predetermined discount rate, to provisions pertaining to the disposition of payments upon a recipient‘s death, and to the forms of security that a tortfeasor may post that will result in his discharge. We observe at the outset that the distinction drawn by the provisions permitting periodic payments in cases of healing-art malpractice, but not in others, does not offend equal protection or constitute special legislation. As explained in the prefatory note to the model act, “[H]alf million and multi-million dollar awards have become so frequent in the last few years that they no longer represent the exceptional case. Such awards have a great impact on the availability and affordability of bodily injury liability insurance. The most acute problems have been experienced in the areas of product liability and medical malpractice, situations that give rise to some of the most serious injury cases.” (Model Periodic Payment of Judgments Act, Prefatory Note, 14 U.L.A. 20 (Supp. 1986).) An additional concern
With respect to due process, the plaintiff first contends that the discount rate currently set in the provisions, 6%, may be unrealistic and therefore result in overestimations or underestimations of present value. The plaintiff accurately observes that the use of a discount rate lower than prevailing interest rates may result in an artificially high present value, and, conversely, that the use of a discount rate higher than prevailing interest rates may result in an artificially low present value. Having determined that the legislature‘s decision to set a discount rate does not interfere with a plaintiff‘s State constitutional right to a jury trial, we do not consider here the additional, separate question whether an unrealistic or “incorrect” discount rate may result in a denial of due process. The current discount
The plaintiff also questions
“If, in an action for wrongful death, a judgment for periodic installments provides payments to more than one person entitled to receive benefits for losses that do not terminate under subsection (a) and one or more but fewer than all of them die, the surviving beneficiaries succeed to the shares of the deceased beneficiaries. The surviving beneficiaries are entitled to shares proportionate to their shares in the periodic installments not yet paid, but they are not entitled to receive payments beyond the respective periods specified for them in the judgment.” (
Ill. Rev. Stat. 1985, ch. 110, par. 2-1713(b) .)
A companion provision,
“If, in an action other than one for wrongful death, a judgment for periodic installments is entered and a person entitled to receive benefits for losses that do not terminate under subsection (a) under the judgment dies and is survived by one or more qualifying survivors, any periodic installments not yet due at the death must be shared equitably by those survivors.” (
Ill. Rev. Stat. 1985, ch. 110, par. 2-1713(c) .)
The plaintiff believes that the first provision unfairly interferes with the right to dispose of property and that both provisions are vague. The provisions in question, based on those appearing in the model act, do not operate as takings or unduly interfere with one‘s right to dispose of property. The provisions in question are drawn from the model act. (See Model Periodic Payment of Judgments Act, secs. 11(b), (c), 14 U.L.A. 37 (Supp. 1986).) The comment to the model act explains:
“Subsection (b) deals with the wrongful death case. If a periodic-instalment judgment provides payments to more than one beneficiary of a wrongful death claim and one or more, but fewer than all, of the beneficiaries die, the surviving beneficiaries succeed to the shares of the deceased beneficiaries. The surviving beneficiaries are to divide the deceased beneficiaries’ shares proportionately.
* * *
Subsection (c) deals with cases other than wrongful death in which a person receives a periodic-instalment judgment, but the person subsequently dies. If there are qualifying survivors, any periodic instalments representing economic loss not yet due at the death must be shared equitably between the survivors.” (14 U.L.A. 37-38 (Supp. 1986).)
Thus,
The plaintiff also objects to the forms of security that may be required (see
III
The plaintiff also challenges the constitutionality of
A large number of other States have modified or abrogated the collateral-source rule in medical malpractice cases, allowing recoveries to be reduced by amounts received from public or private sources. (See, e.g.,
The plaintiff also contends that the deduction allowed by
We find no conflict between the two provisions. If, under a setoff system, suit were filed to attach social security benefits, the Federal provision would be violated. (Philpott v. Essex County Welfare Board (1973), 409 U.S. 413.)
“We believe that plaintiffs’ reliance on section [407] of the Act,
42 U.S.C. section 407 (1976), is misplaced. It isevident that section [407], on its face, protects social security benefits against direct attachment, garnishment, assignment, or levy. [Citations.] Our research has disclosed no case where a court has either upheld or invalidated under section [407] a salary setoff scheme similar to the one at issue here.” (684 F.2d 472, 476 n.7.)
We do not believe that
IV
The plaintiff also challenges the provision prohibiting awards of punitive damages in actions for healing art or legal malpractice.
“In all cases, whether in tort, contract or otherwise, in which the plaintiff seeks damages by reason of legal, medical, hospital, or other healing art malpractice, no punitive, exemplary, vindictive or aggravated damages shall be allowed.”
The circuit judge found that
Notably, other statutes prohibiting the recovery of punitive damages in various types of actions previously have been upheld by this court. (See Siegall v. Solomon (1960), 19 Ill. 2d 145 (actions for alienation of affections); Smith v. Hill (1958), 12 Ill. 2d 588 (actions for breach of promise to marry).) We do not believe that the
Moreover, that in Illinois one may not insure against awards of punitive damages (see Beaver v. Country Mutual Insurance Co. (1981), 95 Ill. App. 3d 1122) does not render the provision irrational in the context in which it was enacted. The purpose of the legislation here was broad enough, we believe, to extend beyond problems that must be peculiar to insurable damages. The elimination of awards for punitive damages in actions for medical malpractice serves the legislative goals of reducing damages generally against the medical profession. For these reasons, we conclude that the provision does not violate equal protection or due process or constitute spe
The plaintiff also argues that
The single-subject clause prohibits the inclusion of “discordant” provisions in the same legislation. (See People ex rel. Ogilvie v. Lewis (1971), 49 Ill. 2d 476, 487-88.) In People ex rel. Carey v. Board of Education (1973), 55 Ill. 2d 533, the court considered the argument that a single-subject violation was present in an act that amended the School Code by containing provisions that changed the fiscal year for the Chicago board of education and also establishing parental or truant schools in that system. The court found no violation of the single-subject clause contained in the current constitution, explaining:
“As we stated in Sangamon County Fair and Agricultural Ass‘n v. Stanard (1956), 9 Ill. 2d 267, 272-3: ‘When the title of the act amended is set forth in the title of the amendatory act, as was here done, any provision which might have been inserted in the original act may be incorporated in the amendatory act.’ Provisions concerning ‘parental schools’ were included in the School Code before its amendment (see
Ill. Rev. Stat. 1971, ch. 122, par. 34-117 ) and they did not become ‘discordant’ or ‘incongruous’ because they were included in this amendatory act. Cf. People ex rel. Gutknecht v. City of Chicago (1953), 414 Ill. 600.” (55 Ill. 2d 533, 536-37.)
The comparable provision in the previous Illinois Constitution said, “No act hereafter passed shall embrace more
V
The remaining provision challenged by the plaintiff here is
The circuit judge found that the provision violates the separation-of-powers clause by invading the authority of the judicial branch to oversee the activities of attorneys, that it violated due process, that it may deny plaintiffs access to the courts, and that it constituted special legislation and violated principles of equal protection.
Other States have enacted statutes regulating or controlling the contingent fees that attorneys may charge in representing parties in medical malpractice cases. Many of those provisions, like the one in question here, contain specific limits on the percentage rates that may be used in computing the fee. (See, e.g.,
We first consider the plaintiff‘s argument that the limits placed on fees by
Relevant, too, are the large number of other State and Federal statutes limiting the amounts of fees that lawyers may charge in handling certain claims or
The difference between common law and statutory rights, remedies, or causes of action does not support the distinction that the plaintiff would draw here. The legal profession is as subject to regulation and interference by the limits contained in the statutes set out above as it is by the provision in question here. In either case, the relationship affected is that between the attorney and his client, and that does not vary with the source of the remedy being pursued.
Nor do we believe that
The plaintiff also argues that
VI
For the reasons indicated, we hold that the provisions for review panels,
Affirmed in part and reversed in part.
JUSTICE SIMON took no part in the consideration or decision of this case.
JUSTICE RYAN, concurring in part and dissenting in part:
I concur with the majority opinion, except that I believe the fact that the judge member of the review panel shares the fact-finding function with the two nonjudge members does not render the panel provisions of the act unconstitutional. There are, however, other provisions relating to the review panel which pose serious constitutional questions.
The provisions for review panels in the present act,
In the present act, the fact that the nonjudge members of the review panel share the fact-finding function with the judge member does not, in my opinion, vest the judicial powers in nonjudicial personnel. In fact, the provisions of our present act clearly separate the judicial and nonjudicial functions of the panel. In jury trials the fact-finding function has long been vested completely in nonjudicial personnel. I therefore do not view the participation of the nonjudicial members of the panel in the fact-finding process as invading the province of the judiciary. In Wright, this court stated, “[W]e do not imply that a valid pretrial panel procedure cannot be devised.” (Wright v. Central Du Page Hospital Association (1976), 63 Ill. 2d 313, 324.) Also, in Anderson v. Wagner (1979), 79 Ill. 2d 295, 304, this court restated that observation of Wright, and said that in Wright we did not hold that all statutory provisions creating panels for the review of malpractice claims were unconstitutional. I believe that a valid panel of three individuals, including one judge, can be created as long as the judicial functions are clearly separated from the nonjudicial functions and are vested in the judicial member of the panel. I am of the opinion that this has been clearly accomplished by the present act. See Comment, Illinois’ Medical Malpractice Review Panel Provision: A Constitutional Analysis, 17 Loy. U.
In Eastin v. Broomfield (1977), 116 Ariz. 576, 570 P.2d 744, the Supreme Court of Arizona distinguished its statute from our 1975 medical malpractice act and declined to follow this court‘s decision in Wright. The Arizona court in Eastin upheld the provisions of the Arizona statute which provided that a judge, a lawyer and a health-care provider sit as a medical malpractice review panel. The court found that the operation of such a panel would not invade the judicial function of the court.
Thus I believe that a medical review panel which includes one judicial member may constitutionally operate in the manner provided in our act, and I disagree with the conclusion of the majority opinion to the contrary. However, I also believe that the provision of
For the above reasons, I would uphold the medical review panel but would invalidate the other objectionable provisions discussed, which I consider to be severable.
(No. 61772.—
THE PEOPLE OF THE STATE OF ILLINOIS, Appellee, v. VICTOR SALDIVAR, Appellant.
Opinion filed September 17, 1986.
