Text: HSB00591 Text: HSB00593 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 668.4, Code 2003, is amended to read as 1 2 follows: 1 3 668.4 JOINT AND SEVERAL LIABILITY. 1 4 In actions brought under this chapter, the rule of joint 1 5 and several liability shall not apply to defendantswho are1 6found to bear less than fifty percent of the total fault1 7assigned to all parties.However, a defendant found to bear1 8fifty percent or more of fault shall only be jointly and1 9severally liable for economic damages and not for any1 10noneconomic damage awards.1 11 Sec. 2. Section 668.12, Code 2003, is amended to read as 1 12 follows: 1 13 668.12 LIABILITY FOR PRODUCTS –STATE OF THE ART DEFENSE1 14 DEFENSES. 1 15 1. In any action brought pursuant to this chapter against 1 16 an assembler, designer, supplier of specifications, 1 17 distributor, manufacturer, or seller for damages arising from 1 18 an alleged defect in the design, testing, manufacturing, 1 19 formulation, packaging, warning, or labeling of a product, a 1 20 percentage of fault shall not be assigned to such persons if 1 21 they plead and prove that the product conformed to the state 1 22 of the art in existence at the time the product was designed, 1 23 tested, manufactured, formulated, packaged, provided with a 1 24 warning, or labeled. 1 25 2. Nothing contained inthis sectionsubsection 1 shall 1 26 diminish the duty of an assembler, designer, supplier of 1 27 specifications, distributor, manufacturer or seller to warn 1 28 concerning subsequently acquired knowledge of a defect or 1 29 dangerous condition that would render the product unreasonably 1 30 dangerous for its foreseeable use or diminish the liability 1 31 for failure to so warn. 1 32 3. An assembler, designer, supplier of specifications, 1 33 distributor, manufacturer, or seller shall not be subject to 1 34 liability for failure to warn regarding risks and risk- 1 35 avoidance measures that should be obvious to, or generally 2 1 known by, foreseeable product users. When reasonable minds 2 2 may differ as to whether the risk or risk-avoidance measure 2 3 was obvious or generally known, the issues shall be decided by 2 4 the trier of fact. 2 5 4. In any action brought pursuant to this chapter against 2 6 an assembler, designer, supplier of specifications, 2 7 distributor, manufacturer, or seller for damages arising from 2 8 an alleged defect in packaging, warning, or labeling of a 2 9 product, a product bearing or accompanied by a warning or 2 10 instruction that is reasonably safe for use if the warning or 2 11 instruction is followed shall not be deemed defective or 2 12 unreasonably dangerous on the basis of failure to warn or 2 13 instruct. 2 14 5. In any action brought pursuant to this chapter against 2 15 an assembler, designer, supplier of specifications, 2 16 distributor, manufacturer, or seller for damages arising from 2 17 an alleged defect in the design which allegedly enhanced 2 18 injuries, or any action alleging the crashworthiness of a 2 19 product, evidence of the user's or injured person's fault 2 20 shall be admissible and, subject to the provisions of section 2 21 668.2, shall be compared if such fault was a substantial 2 22 factor in causing the underlying accident or event producing 2 23 any injury to the claimant, including an enhanced injury. 2 24 6. An assembler, designer, supplier of specifications, 2 25 distributor, manufacturer, or seller shall not be subject to 2 26 liability under a theory of civil conspiracy unless such 2 27 persons knowingly entered into a conspiracy with an intent to 2 28 commit an unlawful act which causes harm. 2 29 Sec. 3. Section 668A.1, subsection 1, Code 2003, is 2 30 amended to read as follows: 2 31 1. In a trial of a claim involving the request for 2 32 punitive or exemplary damages, the court shall instruct the 2 33 jury to answer special interrogatories or, if there is no 2 34 jury, shall make findings, indicating all of the following: 2 35 a. Whether, by a preponderance of clear,and convincing,3 1and satisfactoryevidence, the conduct of the defendant from 3 2 which the claim arose constituted willful and wanton disregard 3 3 for the rights or safety of another. 3 4 b. Whether the conduct of the defendant was directed 3 5 specifically at the claimant, or at the person from which the 3 6 claimant's claim is derived. 3 7 c. Whether, by a preponderance of clear and convincing 3 8 evidence, the conduct of the defendant from which the claim 3 9 arose constituted actual malice. 3 10 Sec. 4. Section 668A.1, subsection 2, paragraph b, Code 3 11 2003, is amended to read as follows: 3 12 b. If the answer or finding pursuant to subsection 1, 3 13 paragraph "b", is negative, after payment of all applicable 3 14 costs and fees, an amount not to exceed twenty-five percent of 3 15 the punitive or exemplary damages awarded may be ordered paid 3 16 to the claimant, with the remainder of the award to be ordered 3 17 paid into a civil reparations trust fund administered by the 3 18 state court administrator. Attorney fees shall not be 3 19 recoverable on any punitive or exemplary damages award to be 3 20 ordered paid to the civil reparations trust fund. Funds 3 21 placed in the civil reparations trust shall be under the 3 22 control and supervision of the executive council, and shall be 3 23 disbursed only for purposes of indigent civil litigation 3 24 programs or insurance assistance programs. The state court 3 25 administrator shall file a report with the general assembly 3 26 for each fiscal year, relating to the administration of the 3 27 fund. 3 28 Sec. 5. NEW SECTION. 668A.2 DEFINITIONS. 3 29 As used in this chapter, the following terms shall have the 3 30 following meanings: 3 31 1. "Clear and convincing evidence" means evidence which 3 32 leaves no serious or substantial doubt about the correctness 3 33 of the conclusions drawn from the evidence. It is more than a 3 34 preponderance of evidence, but less than beyond a reasonable 3 35 doubt. 4 1 2. "Malice" means either conduct which is specifically 4 2 intended by the defendant to cause tangible or intangible 4 3 serious injury to the plaintiff or conduct that is carried out 4 4 by the defendant both with a flagrant indifference to the 4 5 rights of the plaintiff and with a subjective awareness that 4 6 such conduct will result in tangible serious injury. 4 7 Sec. 6. NEW SECTION. 668A.3 AWARD OF PUNITIVE OR 4 8 EXEMPLARY DAMAGES – PROOF – STANDARD. 4 9 Punitive or exemplary damages shall only be awarded where 4 10 the plaintiff proves by clear and convincing evidence that the 4 11 plaintiff's harm was the result of actual malice. This burden 4 12 of proof shall not be satisfied by proof of any degree of 4 13 negligence, including gross negligence. 4 14 Sec. 7. NEW SECTION. 668A.4 PUNITIVE OR EXEMPLARY DAMAGE 4 15 LIMITATIONS. 4 16 1. Except as provided in subsection 2, an award of 4 17 punitive or exemplary damages shall not exceed two times the 4 18 amount of the plaintiff's compensatory damages award or two 4 19 hundred fifty thousand dollars, whichever is greater. 4 20 2. If the defendant is a person or a business with fifty 4 21 or fewer full-time employees, an award of punitive or 4 22 exemplary damages shall not exceed two times the amount of the 4 23 plaintiff's compensatory damages or two hundred fifty thousand 4 24 dollars, whichever is less. 4 25 Sec. 8. NEW SECTION. 668B.1 CITATION. 4 26 This chapter may be cited as the "Noneconomic Damage Awards 4 27 Act". 4 28 Sec. 9. NEW SECTION. 668B.2 DAMAGE AWARDS. 4 29 In any personal injury action, the prevailing plaintiff may 4 30 be awarded all of the following damages: 4 31 1. Compensation for economic damages suffered by the 4 32 injured plaintiff. 4 33 2. Compensation for the noneconomic damages suffered by 4 34 the injured plaintiff not to exceed the greater of either of 4 35 the following: 5 1 a. Two hundred fifty thousand dollars, except upon a 5 2 finding of especially egregious conduct on the part of the 5 3 defendant. 5 4 b. The amount awarded in economic damages. 5 5 EXPLANATION 5 6 This bill concerns regulatory and statutory requirements 5 7 impacting business relating to liability reform. 5 8 The bill eliminates the rule of joint and several liability 5 9 for defendants in a civil action. 5 10 The bill requires a finding of actual malice on the part of 5 11 the defendant for liability for punitive or exemplary damages. 5 12 The bill also provides a clear and convincing evidence 5 13 standard in such actions. The bill generally limits the 5 14 amount of a punitive damages award to twice the amount of the 5 15 plaintiff's compensatory damages or $250,000, whichever is 5 16 greater. The bill further provides that attorney fees shall 5 17 not be recovered on any punitive or exemplary damages award 5 18 that is ordered to be paid to the civil reparations trust 5 19 fund. In addition, the bill establishes a reporting 5 20 requirement for the state court administrator, relating to the 5 21 administration of the civil reparations trust fund. 5 22 The bill establishes the noneconomic damage awards Act and 5 23 provides that an award for noneconomic damages in a personal 5 24 injury action shall not exceed $250,000, or the amount awarded 5 25 in economic damages, whichever is greater. However, the 5 26 limitation does not apply upon a finding of especially 5 27 egregious conduct on the part of the defendant. 5 28 The bill provides that an assembler, designer, supplier of 5 29 specifications, distributor, manufacturer, or seller shall not 5 30 be subject to liability for failure-to-warn claims in product 5 31 liability actions for product risks and risk-avoidance 5 32 measures obvious to or generally known by foreseeable product 5 33 users. The bill further provides that when there is a 5 34 question as to whether the risk or risk-avoidance measure was 5 35 obvious or generally known, the issue shall be decided by the 6 1 trier of fact. 6 2 The bill provides that in any action against an assembler, 6 3 designer, supplier of specifications, distributor, 6 4 manufacturer, or seller for damages arising from an alleged 6 5 defect in packaging, warning, or labeling of a product, a 6 6 product bearing or accompanied by a warning or instruction 6 7 that is reasonably safe for use if the warning or instruction 6 8 is followed shall not be deemed defective or unreasonably 6 9 dangerous on the basis of failure to warn or instruct. 6 10 The bill provides that in any action against such persons 6 11 for damages arising from a defective design which allegedly 6 12 enhanced injuries or any action alleging the crashworthiness 6 13 of a product, evidence of the injured person's conduct is 6 14 admissible in court and the injured person's comparative fault 6 15 should be assessed if such fault was a substantial factor in 6 16 causing the underlying accident or event producing any injury 6 17 to the claimant. 6 18 The bill further provides that such persons shall not be 6 19 subject to liability for any alleged civil conspiracy claim 6 20 unless such persons knowingly entered into a conspiracy with 6 21 an intent to commit an unlawful act which causes harm. 6 22 LSB 5348YC 80 6 23 rh/gg/14
Text: HSB00591 Text: HSB00593 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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