A busy week for the Connecticut legislature’s Judiciary Committee produced mixed results for the state's business climate and economy.

The Good News

The committee unanimously approved a bill that adopts the Connecticut Uniform Limited Liability Company Act.

In Connecticut, up to seven times as many limited liability companies are being formed each year compared with corporations.

Under the national Uniform Limited Liability Company Act, states have to adopt a set of rules providing consistency in the regulation, formation, and dissolution of limited liability companies.

HB 5259 complies, with a carefully crafted and comprehensive update of the state’s existing limited liability company act.

The ULLCA is more comprehensive, well written and modern than our current LLC act and represents a significant advancement in this area of law.

Adopting the ULLCA, through HB 5259, will streamline administration and in turn reduce costs, and provide decisive and predictable consistency across jurisdictions.

The bill now heads to the House for further action.

The Bad News

A bill that will greatly increase the damages that can be awarded in wrongful death actions was approved by the committee this week.

Liability insurance premiums in Connecticut, especially for medical professionals, are already among the highest in the country and higher damage payouts will increase insurance premiums in the state.

Connecticut desperately needs tort reform. Instead, SB 247 takes us further in the wrong direction.
SB 247 is a response to the decision in the Connecticut Supreme Court case Campos v. Coleman. Last year, in a controversial 4-3 decision, the high court overturned decades of precedent and greatly expanded the damages available to plaintiffs by recognizing a new cause of action for loss of parental consortium.

Loss of consortium is a form of third-party liability in which a tortfeasor is held responsible for indirect emotional harms suffered by a person with a close relationship to an injured or deceased party.

Although the Supreme Court overturned precedent, it did include several important restrictions that are not encompassed in SB 247.

For example, not in the court decision, but included in SB 247 is allowing for double recovery.

Connecticut already allows the estate of a deceased person to recover non-economic damages for “loss of life’s enjoyment.”

Ultimately, SB 247 could significantly increase damage payouts in wrongful death cases because each minor child would be entitled to a separate award of damages.

Connecticut desperately needs tort reform. Instead, SB 247 takes the state further in the wrong direction.

CBIA will continue to oppose this bill as it heads to the Connecticut State Senate for further action.

For more information, contact CBIA’s Louise DiCocco (203.589.6515) |