Governor Kenny Guinn of Nevada signed a bill into law yesterday that will place a cap on future pain-and-suffering awards in medical malpractice cases. The law's enactment was a relief for doctors and insurance carriers who have suffered from enormous malpractice verdicts over the past year. The state's largest physician insurance provider, St. Paul Cos., recently decided to leave the medical malpractice insurance business, citing the rising costs of malpractice claims. Last month, the University Medical Center in Las Vegas closed its trauma ward after dozens of doctors temporarily quit because they could not afford insurance.

Although pain-and-suffering awards will be limited to $350,000, plaintiffs can receive more if gross negligence is proven or if there is "clear and convincing" evidence that they deserved a larger payout. The law will take effect October 1.