March 9, 2011

Proposed cap on punitive damages in California is deleted from amended version of bill

We previously blogged about Assembly Bill 158, which, in its original form, would have limited punitive damages in California to three times compensatory damages.  The bill also included proposals to (1) eliminate punitive damages in products liability cases in which the defendant could establish that its product was in compliance with applicable regulations, and (2) limit noneconomic damages to $250,000 in all negligence cases.

An amended version of the bill is now scheduled for a hearing on March 1315.  The amended version of the bill, however, no longer includes the caps on punitive damages or noneconomic damages.  It contains only the limitation on punitive damages for products liability cases.