Reduces the limit on the amount of noneconomic damages that may be awarded for noneconomic loss arising from a claim of bodily injury from $400,000 to $350,000.  Does not impact damages such as lost wages, medical expenses and future loss of expected wages, and lays out exceptions to the limit in case of gross negligence, reckless disregard, intentional actions, or malicious conduct.  Eliminates the establishment of the Health Care Indemnity Fund.

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Limits noneconomic damages to $300,000 in medical liability cases provided the defendant made an offer of judgment and the amount of the verdict is less than one-and-a-half times the amount of the final offer of judgment.  Indexed the limit to inflation.  Non-economic damages do not include, by definition, exemplary damages.  Limit on noneconomic damages may be lifted if nine or more members of the jury find by clear and convincing evidence that the defendant committed negligence or if nine or more members of the jury find by a preponderance of the evidence that the conduct of the defendant was willful or wanton.  Provides, however, that the judge must, before submitting such determination to the jury, make a threshold determination that there is evidence from which the jury could reasonably make the findings set forth in the case.  Provides that if the jury returns a verdict that is greater than $300,000 but less than one-and-a-half times the amount of the final offer of judgment, the court shall submit additional forms of possible verdicts to the jury covering possible determinations of negligence and/or willful and wanton conduct.  Provided that limits do not apply to wrongful death action.  Provisions of this section sunsets on November 1, 2010

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Extends the sunset provision on the limit on noneconomic damages for ob/gyn’s and emergency care situations (S.B. 629, 2003) from July 1, 2008 until November 1, 2010.

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