Punitive damage reform proposal faces first hearing

By CMTA Staff

Capitol Update, Jan. 11, 2008 Share this on FacebookTweet thisEmail this to a friend

On Tuesday, January 15th, the Senate Judiciary Committee will consider SB 423 (Tom Harman, R-Orange), which aims to provide a clear standard for reasonable punitive damages awards. The bill would limit such awards to no more than three times the compensatory damages.

State legislatures across the country have moved to adopt limits to prevent excessive punitive damage amounts. While five states prohibit punitive damages altogether in civil actions, twenty-two states impose some form of cap or formula.

Given California's reputation as having a poor legal climate with runaway punitive damage awards, CMTA encourages the legislature to adopt this proactive and common sense approach to reforming punitive damages.

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