SACRAMENTO – The Civil Justice Association of California today announced the introduction of a bill that would help California’s economic recovery by making legal damages fairer and more predictable, while protecting the compensation that injured parties receive in a lawsuit.
Assembly Bill 8X 40, authored by Assemblyman Roger Niello (R-Fair Oaks) and sponsored by CJAC, focuses on setting limits on punitive damages that can be added to the money an injured person receives to cover medical bills and related pain and suffering, property damage, lost earnings, and other actual losses.
“This bill is a fair, sensible solution to the problem of unpredictable jackpot awards, which drive up the cost of goods and services for all Californians and is yet another barrier to economic growth and job creation in a state that needs both,” said CJAC President John H. Sullivan.
The bill would limit punitive damages – which are meant to punish the defendant – to three times the amount of compensatory damages, or the actual damages that a person has suffered as a result of injury or harm. Currently, punitive damages can run from nothing to hundreds of millions of dollars at the whim of a judge or jury.
It also would prohibit an award of punitive damages when a product has been approved by a regulatory agency, unless a defendant has supplied misinformation or withheld information about the product. Under this provision, if a governmental agency approved a product that later injured someone, the maker of the product would still have to pay to compensate the injured party, but would not be punished with a punitive damages award.
In addition, the bill also would limit non-economic damages – damages for pain and suffering – to $250,000 in all civil cases.
This proposal is similar to the $250,000 limit on non-economic damages included in California’s Medical Injury Compensation Reform Act. For more than 30 years, that landmark reform measure has ensured that injured patients receive fair compensation while preserving their access to health care by keeping doctors, nurses, and other health care providers in practice and hospitals and clinics open.
“Neither justice nor economic vitality is served through excessive punitive legal extractions,” Assemblyman Niello said. “I am proud to partner with CJAC in offering the reasonable and fair approach of AB 8X 40.”