1978 VETOES.

and Process at Law", sub-title "Pleadings", said new section
to be known as Section 14A and to follow immediately after
Section 14 of said Article, relating to actions for damages
against charitable institutions.

By the terms of Senate Bill 594, there is proposed to be added
a new section to Article 75 which would relate to actions for
damages against charitable institutions. -

Briefly stated, the bill provides that where insurance is car-
ried neither the charitable institution nor the insured shall be
allowed to plead immunity from liability because of the fact
that the institution is established for charitable purposes. As
to the origin of the bill, it might be stated that persons injured
as a result of the negligence of agents of charitable institu-
tions feel that they should have the right to recover damages
against such institutions, in those cases where an insurance
company has accepted premiums covering the institution.

Cases have occurred, it is contended, where the insurance
companies have accepted premiums from charitable institu-
tions and then, after an accident resulting in personal injury,
have set up the defense that a charity cannot be sued. Various
questions have been raised as to possible difficulties affecting
the charitable institutions if this bill is approved. One possi-
bility is, some contend, that a charitable institution, once in-
sured, would have to pay the excess of the amount of judgment
returned in court, over the face amount of the insurance policy.
Others contend, that if, between the time of the acceptance of
the premium and the time of assertion of claims, the insurance
company becomes financially involved, then considerable diffi-
culties might ensue in regard to the pro-rating of its assets
in connection with claim for damages.

Inasmuch as the bill only covers those situations where a
charitable institution takes out insurance, it is argued that
such charities may refrain from continuing any liability poli-
cies now in effect. Meanwhile, they would be subject to judg-
ment as above indicated.

My investigation shows that a number of charitable and re-
ligious organizations are now carrying insurance with which
to meet claims for injuries which are deemed meritorious. This
bill might penalize those institutions for the very fact of their
taking insurance with which to meet any just claims.

The able chairman of the Senate Judicial Proceedings Com-
mittee, who introduced this measure, has pointed out the diffi-
culties which might arise, and he suggests the veto of his bill,
with provision for a study of this question by all the interested
parties.