The recent ruling by the Oregon Supreme Court that the $200,000 cap for economic and non-economic damages in cases involving public agencies is insufficient, puts a new wrinkle on the use of an e-clause in the February special session.

In a peculiar bout of hubris, State Senator Larry George attempted to block the upcoming legislative session on the grounds that it was called using an emergency clause where none exists.

George's quixotic effort failed. A Marion court judge ruled that the use of an emergency clause satisfied constitutional requirements. The result was surprising to no one, least of all George.

But now, as the Oregonian's editorial board observed, we really do have a legislative emergency:

"... by one rough calculation, the cost to the state in lawsuit payouts could reach $75 million a biennium. Legislators must summon their courage and avert this financial disaster-in-the-making. After that, Gov. Ted Kulongoski should convene a come-to-Jesus meeting among the intransigent groups involved in this argument, similar to the "Mahonia Hall" meeting he helped lead to settle the Oregon workers compensation crisis. We need a better, fairer tort system that protects both victims and taxpayers. For that matter, a Mahonia Hall-type settlement could set the model for wider tort reform in Oregon.

The Governor and legislature should put aside partisan politics and calculations about the 2008 election and act immediately to address this issue.