OR: The Full 30-Year Saga of the $500K Damages Cap

Struck down. Revived. Struck down again. And then a genuinely surprising twist for one specific kind of claim.

1987: A cap born from a wave of tort reform

During a nationwide wave of tort reform legislation in the 1980s, Oregon enacted a $500,000 cap on noneconomic damages — pain and suffering, emotional distress, and similar nonpecuniary losses — codified at ORS § 31.710.

1999: Struck down the first time

In a decision known as Lakin, the Oregon Supreme Court held that the cap violated the remedy clause of the Oregon Constitution, Article I, Section 10 — which the court read, at the time, as providing a substantive guarantee of a meaningful remedy for certain injuries.

2016: A surprising revival

In Horton v. Oregon Health & Science University, the Oregon Supreme Court overruled Lakin entirely, reviving several nearly century-old precedents that Lakin had itself overruled. Horton established a new test: a damages cap violates the remedy clause only if the capped amount is "insubstantial" compared to what the jury actually awarded — a "paltry fraction" of the real damages. Horton itself involved the Oregon Tort Claims Act's own damages cap, which the court found did not violate the remedy clause in that specific case.

2016-2020: Lower courts split

Following Horton, Oregon's Court of Appeals heard a string of cases applying the new test to the separate general noneconomic damages cap. In one case, Vasquez v. Double Press Manufacturing, reducing a plaintiff's award from $6.2 million to $1.9 million under the cap was found to leave him with only a "paltry fraction" of his actual damages — unconstitutional as applied. These cases built toward a final resolution.

2020: Struck down again, definitively

In Busch v. McInnis Waste Systems, the Oregon Supreme Court finally and definitively resolved the question: the $500,000 cap under ORS § 31.710(1) is unconstitutional as applied to an ordinary personal injury claim brought by a living plaintiff. One commentary memorably summarized the outcome: "Oregon's damages cap is dead — at least as to the living."

The genuinely surprising twist: it survives for wrongful death

Here's the detail that makes this story complete. The same $500,000 cap remains in place specifically for wrongful death claims in Oregon — a real, continuing limitation distinct from the ordinary personal injury context where it was struck down. The years of litigation specifically targeted the cap's application to living, injured plaintiffs; the wrongful death context has followed its own separate constitutional analysis and hasn't seen the same outcome.

Why this history genuinely matters today

For an ordinary Oregon personal injury claim brought by a living plaintiff, there is currently no general statutory ceiling on noneconomic damages — a jury's award for pain and suffering stands on its own. For a wrongful death claim specifically, the $500,000 cap remains a real, continuing consideration. Given how much this area of Oregon law has shifted over the decades, confirming the current state of the law with an attorney is a genuinely worthwhile step in any significant claim.

The damages cap saga — frequently asked questions

When was Oregon's noneconomic damages cap first enacted?

In 1987, during a nationwide wave of tort reform legislation, Oregon enacted a $500,000 cap on noneconomic damages, codified at ORS 31.710.

What happened to the cap in 1999?

The Oregon Supreme Court struck it down as unconstitutional under the remedy clause of the Oregon Constitution, in a decision known as Lakin.

How did the 2016 Horton decision change things?

Horton v. OHSU overruled Lakin and established a new legal test for whether a damages cap violates the remedy clause, reviving the possibility that the cap could again apply in some cases.

What did the 2020 Busch decision finally resolve?

The Oregon Supreme Court held that the $500,000 cap is unconstitutional as applied to an ordinary personal injury claim brought by a living plaintiff, definitively resolving years of lower court disagreement on the question.

Does the cap still apply to any claims in Oregon today?

Yes. It remains in place specifically for wrongful death claims, a genuinely surprising twist given that the same cap was struck down for the living.

This page provides general guidance only and is not legal advice. Figures are based on Oregon case law (Lakin v. Senco Products; Horton v. OHSU, 359 Or 168 (2016); Busch v. McInnis Waste Systems, 366 Or 628 (2020)) and statute (ORS § 31.710), verified per our methodology. Confirm how these considerations apply to a specific claim with a licensed Oregon attorney before acting.