Bill Text: NJ A1888 | 2010-2011 | Regular Session | Introduced
Bill Title: Limits punitive damages in certain cases involving two or more comparatively negligent defendants.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-25 - Introduced, Referred to Assembly Judiciary Committee [A1888 Detail]
Download: New_Jersey-2010-A1888-Introduced.html
Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
SYNOPSIS
Limits punitive damages in certain cases involving two or more comparatively negligent defendants.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning punitive damages and amending P.L.1995, c.142.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1995, c.142 (C.2A:15-5.14) is amended to read as follows:
6. a. Before entering judgment for an award of punitive damages, the trial judge shall ascertain that the award is reasonable in its amount and justified in the circumstances of the case, in light of the purpose to punish the defendant and to deter that defendant from repeating such conduct. If necessary to satisfy the requirements of this section, the judge may reduce the amount of or eliminate the award of punitive damages.
b. No defendant shall be liable for punitive damages in any action in an amount in excess of five times the liability of that defendant for compensatory damages or $350,000, whichever is greater.
c. The provisions of subsection b. of this section shall not apply to causes of action brought pursuant to P.L.1993, c.137 (C.2A:53A-21 et seq.), P.L.1945, c.169 (C.10:5-1 et seq.), P.L.1989, c.303 (C.26:5C-5 et seq.), P.L.1992, c.109 (C.2A:61B-1) or P.L.1986, c.105, (C.34:19-1 et seq.), or in cases in which a defendant has been convicted pursuant to N.J.S.2C:11-3, N.J.S.2C:11-4, R.S.39:4-50 or section 2 of P.L.1981, c.512 (C.39:4-50.4a) or the equivalent under the laws of any other jurisdiction.
d. Notwithstanding the provisions of subsection c. of this section, in any action where two or more defendants are found comparatively negligent and one of these defendants reaches a financial settlement with the plaintiff, that portion of the settlement amount representing punitive damages will be used to establish a figure representing 100% of the total punitive damage liability for all defendants and each remaining defendant will be liable for no more than that remaining defendant's share of the total punitive damages established pursuant to this subsection based on that remaining defendant's percentage of comparative fault.
(cf: P.L.2005,c.329,s.3)
2. This act shall take effect immediately.
STATEMENT
Punitive damages statutes
establish a means of punishing
defendants in civil causes of action where the defendant's conduct is
particularly egregious.
Under present law, the trier of fact determines punitive damages and may not be informed of any statutory limitations on or exceptions to the amount of punitive damages.
This bill would create an additional limitation on punitive damages in cases involving two or more defendants who are comparatively negligent and where one defendant settles with the plaintiff on a punitive damages amount by limiting the financial liability for all other defendants to a percentage of the settlement amount of punitive damages in proportion to each defendant's respective comparative fault.
