COLUMBUS (January 5, 2007) - Governor Bob Taft today released the following statement regarding his decision to allow Amended Substitute Senate Bill 117 to become law without his signature:

"I have decided to allow Amended Substitute Senate Bill 117 become law without my signature. While there are many provisions in this bill that I endorse, there is one that I cannot support. Because the Ohio Constitution precludes me from exercising a line item veto, I feel my only course is to not sign the bill.

"I support the General Assembly's determination to prevent insurance companies from attempting to hide behind attorney-client privilege in instances where that privilege has been abused to aide or further the commission of bad faith, fraud, or criminal misconduct by the insurance company. Such a measure certainly protects our insurance consumers in situations where they are at their most vulnerable.

"I also support changes made by the General Assembly to recognize that causes of action based upon the design, manufacture, and supply of products are best addressed under Ohio's products liability law and should not be treated as public nuisance claims. Liability should attach in such cases only where it can be proven that a specific manufacturer is responsible for the product.

"Had the foregoing been the only provisions in SB 117, I would have readily signed it. However, I cannot agree with the General Assembly's amendment to the Consumer Sales Practices Act (CSPA) which limits damage awards for noneconomic harm to the very small amount of $5,000. Even though consumers, including victims of predatory lending, will still have a private right of action under the CSPA, and actions may still be brought at the initiative of the Attorney General, SB 117's amendment weakens the Act with respect to predatory lending and all other consumer transactions. It encourages potential offenders to engage in a cost-benefit analysis and build the low level of potential damages into their business plans. This limit is unjustifiably low given the limits on noneconomic damages that I signed into law when the General Assembly enacted comprehensive lawsuit reform in 2004. Similar limits (up to $350,000 per person or $500,000 per occurrence) will afford predictability under the CSPA while providing a more significant deterrent for those who would otherwise prey upon vulnerable consumers.

"I encourage the General Assembly to revisit this issue in its current session."

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Media Contact: Mark Rickel, Governor's Press Secretary, at (614) 644-0957.

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