Tort Liability Reform Act of 1986

Tort Liability Reform Act of 1986 - Title I: Federal Tort Liability Reform - Amends the Federal Rules of Civil Procedure to provide certain limitations and procedures regarding civil damages in tort actions seeking recovery against the United States.

Requires a pretrial hearing to be held within 30 to 60 days after the filing of an action. Directs the hearing official to make recommendations regarding: (1) the relative strength of the legal position of each party; and (2) expediting discovery proceedings. Requires the court to take certain actions to expedite matters where discovery has not been completed within one year.

Requires that future damages awards exceeding $100,000 be made by periodic payments. Requires that damages awards be offset by any amount received as compensation for the same injury from other sources. Limits the amount of damages for noneconomic losses to $100,000.

Makes any attorney whose conduct is calculated for delay, or is found to be in bad faith, subject to pecuniary sanctions by the court.

Title II: State Tort Liability Reform - Provides certain limitations and procedures regarding civil damages in claims arising under State law alleging negligence, strict or product liability, intentionally tortious conduct, or malpractice.

Requires a pretrial hearing to be held within 30 to 60 days after the filing of an action. Directs the hearing official to make recommendations regarding: (1) the relative strength of the legal position of each party; and (2) expediting discovery proceedings. Requires the court to take certain actions to expedite matters where discovery has not been completed within one year.

Requires that future damages awards exceeding $100,000 be made by periodic payments. States that no interest shall be paid for any period preceding the date on which the action is commenced. Requires that damages awards be offset by any amount received as compensation for the same injury from other sources. Limits the amount of damages for noneconomic losses to $100,000.

Permits the awarding of punitive damages only where the conduct of the defendant manifests a conscious disregard for safety. Provides that punitive damages awarded in any civil action to which this Act applies shall be paid to the clerk of the court and transmitted to the Treasurer of the United States or the treasurer of the State in which the court is located.

Makes any attorney whose conduct is calculated for delay, or is found to be in bad faith, subject to pecuniary sanctions by the court.

Preempts any inconsistent State law.