Indianapolis, January 13, 2026
A coalition of business organizations in Indiana has formed the Indiana Alliance for Legal Reform to advocate for House Bill 1417, which aims to reshape civil lawsuits by capping non-economic damages, limiting public nuisance claims, and providing liability protections for businesses. Proponents argue these changes will foster a more business-friendly environment, while critics raise concerns over potential impacts on individual rights and tort law. The bill is currently under review in the House Judiciary Committee.
Major Reform Push: Indiana Business Groups Advocate for HB 1417
A proposed law seeks to reshape civil lawsuits and support business liability protections, sparking a debate on justice reform in Indianapolis.
Indianapolis, Indiana – A coalition of prominent Indiana business organizations has united to create the Indiana Alliance for Legal Reform, aiming to advocate for House Bill 1417. This proposed legislation focuses on reshaping civil lawsuits in the state, primarily by capping non-economic damages, restricting public nuisance claims, and providing liability protections for businesses. These measures are seen as essential to fostering a more favorable business environment in Indiana.
In a climate where local entrepreneurs strive to innovate and grow, the Indiana Alliance represents a significant effort by groups including the Indiana Chamber of Commerce and the Indiana Manufacturers Association. Executive Director Stephen Wolff noted the alliance’s objective to curb what they categorize as frivolous lawsuits that could burden hardworking Hoosier businesses.
Key Features of House Bill 1417
House Bill 1417, introduced by Rep. Matt Lehman, R-Berne, proposes several impactful reforms that aim to modernize Indiana’s civil justice system:
- Non-Economic Damages Cap: This provision would limit non-economic damages, including pain and suffering, to $1 million in civil cases. Courts would adjust any awards that exceed this cap, ensuring a more standardized approach to compensatory damages.
- Public Nuisance Claims: The legislation seeks to narrow the criteria for public nuisance claims. Only ongoing and unlawful conditions that violate an established public right and are prohibited by state or federal law can be classified as public nuisances.
- Liability Protections for Businesses: The bill introduces protections that prevent lawsuits against property and business owners for criminal acts committed by others on their premises. This also protects ride-hailing companies from liability for incidents occurring during a ride if the user has also committed a criminal act.
Support for the Bill: Enhancing Business Resilience
Proponents argue that these reforms could significantly boost the Indiana economy by protecting small businesses from excessive legal challenges. Advocates maintain that the non-economic damages cap would reduce the risk of exorbitant jury awards, thereby allowing businesses to allocate resources towards innovation and services rather than legal defenses. In a state where small businesses are the backbone of job creation, fostering a less litigious environment may promote enterprise and job growth.
Opposition Perspectives: Concerns over Rights and Justice
However, the bill has faced criticism from some lawmakers, notably Rep. Ed DeLaney, D-Indianapolis. He contends that the proposed measures may not address any significant issues within Indiana’s legal landscape and could undermine fundamental principles of tort law. Concerns have been raised regarding the potential impacts of limiting compensation for pain and suffering, as well as the provisions shielding transportation network companies from liability, which some interpret as overly protective of large corporations at the expense of individual rights.
Status and Next Steps for House Bill 1417
As of January 13, 2026, House Bill 1417 has been referred to the House Judiciary Committee, but no hearing date has been scheduled. The proposed reforms have initiated an important dialogue regarding the balance of protecting businesses while ensuring access to justice for individuals. Stakeholders from various sectors are closely monitoring developments as the bill progresses through the legislative process.
Getting Involved in Economic Growth
The ongoing discussions surrounding House Bill 1417 highlight the importance of community engagement in shaping Indiana’s economic future. As the local business ecosystem adapts to changing legal frameworks, residents and entrepreneurs are encouraged to stay informed and advocate for policies that support entrepreneurship and innovation. Supporting local businesses ultimately contributes to the resilience and growth of the Indianapolis economy.
Frequently Asked Questions (FAQ)
What is the Indiana Alliance for Legal Reform?
The Indiana Alliance for Legal Reform is a coalition of major Indiana business organizations, including the Indiana Chamber of Commerce, Indiana Manufacturers Association, National Federation of Independent Business, Indiana Motor Truck Association, and Indiana Bankers Association. The alliance advocates for civil justice reforms aimed at curbing what they describe as frivolous lawsuits and excessive jury awards against businesses.
What does House Bill 1417 propose?
House Bill 1417 proposes several key changes to Indiana’s civil justice system, including:
- Non-Economic Damages Cap: Capping non-economic damages, such as pain and suffering, at $1 million in all civil cases. Courts would be required to reduce awards exceeding this amount and allocate the capped damages proportionally among defendants based on fault.
- Public Nuisance Claims: Narrowing the scope of public nuisance claims by defining them as ongoing and unlawful conditions that interfere with an established public right and are expressly prohibited by state or federal law. Activities permitted by law, ordinance, or court order could not be considered public nuisances.
- Liability Protections for Businesses: Prohibiting lawsuits against property owners, business owners, or third-party business operators for criminal acts committed by someone else on their property or premises. Also, barring claims brought by individuals who committed the criminal act themselves, and prohibiting transportation network company riders from bringing claims against the company for injuries caused by a driver or occurring during a ride.
What is Rep. Ed DeLaney’s stance on the bill?
Rep. Ed DeLaney, D-Indianapolis, criticized House Bill 1417, arguing that it addresses problems Indiana does not have and undermines the core principles of tort law. He expressed concern that the non-economic damages cap could limit compensation for pain and suffering and questioned the provision shielding transportation network companies from liability.
What is the current status of House Bill 1417?
As of January 13, 2026, House Bill 1417 has been referred to the House Judiciary Committee but has yet to receive a hearing date. The proposed reforms have sparked debate between business advocates seeking liability protections and critics concerned about potential limitations on the rights of injured individuals.
Table of Key Features of House Bill 1417
| Feature | Description |
|---|---|
| Non-Economic Damages Cap | Caps non-economic damages, such as pain and suffering, at $1 million in all civil cases. Courts must reduce awards exceeding this amount and allocate the capped damages proportionally among defendants based on fault. |
| Public Nuisance Claims | Narrows the scope of public nuisance claims by defining them as ongoing and unlawful conditions that interfere with an established public right and are expressly prohibited by state or federal law. Activities permitted by law, ordinance, or court order cannot be considered public nuisances. |
| Liability Protections for Businesses | Prohibits lawsuits against property owners, business owners, or third-party business operators for criminal acts committed by someone else on their property or premises. Also bars claims brought by individuals who committed the criminal act themselves, and prohibits transportation network company riders from bringing claims against the company for injuries caused by a driver or occurring during a ride. |
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