WASHINGTON — President Reagan was presented Monday with recommendations for dealing with the nation's liability insurance crisis, including limits on attorneys' fees and restrictions on punitive damages and damage awards for "pain and suffering," White House officials said.
At a meeting of the Domestic Policy Council, Reagan was told the problem is "out of control," with escalating premiums, insurance shortages and skyrocketing damage awards, the officials said.
Reagan was given the recommendations of an Administration working group on the problem headed by Assistant Atty. Gen. Richard K. Willard, who said in a speech here Monday that the crisis "is being felt in virtually every segment of American society."
Legal Definition Expanded
While an intense debate is under way over the causes of the crisis, most observers believe it stems, in part, from an expanding legal definition of "liability" by judges, legislators and juries. As a result, individuals, businesses and public agencies are being required to compensate injured people more readily, and more generously, than in the past.