[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 78 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 78

 To provide a fair and balanced resolution to the problem of multiple 
        imposition of punitive damages, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

 Mr. Hatch (for himself and Mr. Thomas) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To provide a fair and balanced resolution to the problem of multiple 
        imposition of punitive damages, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multiple Punitive Damages Fairness 
Act of 1997''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Claimant.--The term ``claimant'' means any person who 
        brings a civil action and any person on whose behalf such an 
        action is brought. If such an action is brought through or on 
        behalf of an estate, the term includes the claimant's decedent. 
        If such action is brought through or on behalf of a minor or 
        incompetent, the term includes the claimant's legal guardian.
            (2) Harm.--The term ``harm'' means any legally cognizable 
        wrong or injury for which punitive damages may be imposed.
            (3) Defendant.--The term ``defendant'' means any 
        individual, corporation, company, association, firm, 
        partnership, society, joint stock company, or any other entity 
        (including any governmental entity).
            (4) Punitive damages.--The term ``punitive damages'' means 
        damages awarded against any person or entity to punish or deter 
        such person or entity, or others, from engaging in similar 
        behavior in the future.
            (5) Specific findings of fact.--The term ``specific 
        findings of fact'' means findings in written form focusing on 
        specific behavior of a defendant.
            (6) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, Puerto Rico, the 
        Northern Mariana Islands, the Virgin Islands, Guam, American 
        Samoa, and any other territory or possession of the United 
        States, or any political subdivision thereof.

SEC. 3. MULTIPLE PUNITIVE DAMAGES FAIRNESS.

    (a) Findings.--The Congress finds the following:
            (1) Multiple or repetitive imposition of punitive damages 
        for harms arising out of a single act or course of conduct may 
        deprive a defendant of all the assets or insurance coverage of 
        the defendant, and may endanger the ability of future claimants 
        to receive compensation for basic out-of-pocket expenses and 
        damages for pain and suffering.
            (2) The detrimental impact of multiple punitive damages 
        exists even in cases that are settled, rather than tried, 
        because the threat of punitive damages being awarded results in 
        a higher settlement than would ordinarily be obtained. To the 
        extent this premium exceeds what would otherwise be a fair and 
        reasonable settlement for compensatory damages, assets that 
        could be available for satisfaction of future compensatory 
        claims are dissipated.
            (3) Fundamental unfairness results when anyone is punished 
        repeatedly for what is essentially the same conduct.
            (4) Federal and State appellate and trial judges, and well-
        respected commentators, have expressed concern that multiple 
        imposition of punitive damages may violate constitutionally 
        protected due process rights.
            (5) Multiple imposition of punitive damages may be a 
        significant obstacle to comprehensive settlement negotiations 
        in repetitive litigation.
            (6) Limiting the imposition of multiple punitive damages 
        awards would facilitate resolution of mass tort claims 
        involving thousands of injured claimants.
            (7) Federal and State trial courts have not provided 
        adequate solutions to problems caused by the multiple 
        imposition of punitive damages because of a concern that such 
        courts lack the power or authority to prohibit subsequent 
        awards in other courts.
            (8) Individual State legislatures can create only a partial 
        remedy to address problems caused by the multiple imposition of 
        punitive damages, because each State lacks the power to control 
        the imposition of punitive damages in other States.
    (b) General Rule.--Except as provided in subsection (c), punitive 
damages shall be prohibited in any civil action in any State or Federal 
court in which such damages are sought against a defendant based on the 
same act or course of conduct for which punitive damages have already 
been sought or awarded against such defendant.
    (c) Circumstances for Award.--If the court determines in a pretrial 
hearing that the claimant will offer new and substantial evidence of 
previously undiscovered, additional wrongful behavior on the part of 
the defendant, other than the injury to the claimant, the court may 
award punitive damages in accordance with subsection (d).
    (d) Limitations on Award.--A court awarding punitive damages 
pursuant to subsection (c) shall--
            (1) make specific findings of fact on the record to support 
        the award;
            (2) reduce the amount of the punitive portion of the damage 
        award by the sum of the amounts of punitive damages previously 
        paid by the defendant in prior actions based on the same act or 
        course of conduct; and
            (3) prohibit disclosure to the jury of the court's 
        determination and action under this subsection.
    (e) Applicability and Preemption.--
            (1) In general.--Except as provided in paragraph (3), this 
        section shall apply to--
                    (A) any civil action brought on any theory where 
                punitive damages are sought based on the same act or 
                course of conduct for which punitive damages have 
                already been sought or awarded against the defendant; 
                and
                    (B) all civil actions in which the trial has not 
                commenced before the effective date of this Act.
            (2) Applicability.--Except as provided in paragraph (3), 
        this section shall apply to all civil actions in which the 
        trial has not commenced before the effective date of this Act.
            (3) Nonapplicability.--This section shall not apply to any 
        civil action involving damages awarded under any Federal or 
        State statute that prescribes the precise amount of punitive 
        damages to be awarded.
            (4) Exception.--This section shall not preempt or supersede 
        any existing Federal or State law limiting or otherwise 
        restricting the recovery for punitive damages to the extent 
        that such law is inconsistent with the provisions of this 
        section.

SEC. 4. EFFECT ON OTHER LAW.

    Nothing in this Act shall be construed to--
            (1) waive or affect any defense of sovereign immunity 
        asserted by any State under any law;
            (2) supersede any Federal law;
            (3) waive or affect any defense of sovereign immunity 
        asserted by the United States;
            (4) affect the applicability of any provision of chapter 97 
        of title 28, United States Code;
            (5) preempt State choice-of-law rules with respect to 
        claims brought by a foreign nation or a citizen of a foreign 
        nation;
            (6) affect the right of any court to transfer venue or to 
        apply the law of a foreign nation or to dismiss a claim of a 
        foreign nation or of a citizen of a foreign nation on the 
        ground of inconvenient forum; or
            (7) create a cause of action for punitive damages.
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