In 2011, the Tennessee legislature enacted limitations on non-economic compensatory damages and punitive damages which are recoverable in Tennessee. T.C.A. 29-39-102 was part of the Tennessee Civil Justice Act of 2011. It limits non-economic compensatory damages suffered by each injured plaintiff to $750,000 except in cases of what the legislature defined as "catastrophic" injury, in which case the limit on non-economic damages is increased to $1,000,000.

In 2011, the Tennessee Legislature, carrying the banner of tort reform, enacted a limitation on non-economic damages recoverable by an injured plaintiff. The pertinent statute, T.C.A. § 29-39-102 (part of the Tennessee Civil Justice Act of 2011) limits non-economic damages suffered by each injured plaintiff (including derivative claims of a spouse or child) to $750,000, except in cases of "catastrophic" injury. T.C.A. §§ 29-39-102 (a)(2), (c) and (e).

TENNESSEETennessee caps non-economic damages at $750,000, which is raised to $1 million if the plaintiff suffers catastrophic injury. Tenn. Code Ann. § 29-39-102; McClay v. Airport Mgm’t Serv., Inc., 596 S.W.3d 686 (Tenn. 2020) (upholding constitutionality of statutory cap on non-economic damages against plaintiff’s arguments that the statute violated her right to a trial by jury, violated the separation of powers doctrine, and discriminated disproportionately against women); but seeLindenberg v. Jackson National Life Ins. Co., 912 F.3d 348 (6th Cir. 2018), cert. denied, 140 S.Ct. 6356 (2019) (holding the statutory cap on punitive damages is unconstitutional). The cap is eliminated entirely if the defendant had a specific intent to inflict serious physical injury; intentionally falsified, destroyed, or concealed records of evidence to avoid liability; was under the influence of alcohol, drugs, or any other intoxicant or stimulant; or whose actions result in a felony conviction.

Following a trial, the jury returned a verdict awarding the plaintiff $444,500.00 in economic damages and $930,000.00 in non-economic damages.The defendant asked the court to apply Tennessee's non-economic damages cap, which limits non-economic damages to $750,000.00. See Tenn. Code Ann. §§ 29-39-102(a)-(e). The plaintiff objected, arguing that the damages cap violated the right to a trial by jury, amounted to an impermissible exercise of judicial powers by the Tennessee legislature, and, in an unusual argument, disproportionally discriminated against women, all in violation of the Tennessee Constitution.

The cap is applied by the trial judge after the jury verdict if and when the jury awards the plaintiff damages in excess of the cap. Tenn. Code Ann. 29-39-102(g). The Supreme Court vacated the prior ruling of the trial court and remanded the case for further proceedings.

In 2011, Tennessee joined a growing number of states that passed tort reform. In Particular Tennessee Code Annotated § 29-39-102 provides for caps on non-economic damages and Tennessee Code Annotated § 29-39-104 provides for caps on punitive damages. Neither statute provides any guidance as to how those caps should be applied.