MARYLAND REFORMS

Employer Reference Liability: HB 597 (1996).  Releases employers from civil liability for providing employee references using a presumption of good faith. Provides that the good faith presumption can be rebutted only by “clear and convincing” evidence that there was actual malice or false information was intentionally or recklessly disclosed.

Good Faith Reliance: Consumer Protection Contracts-Late Fees: SB 145 (2000).  Retroactively protects businesses that imposed late fees in good faith in reliance on the generally accepted understanding of the law governing late fees.  Allows businesses to charge a reasonable late fee to recover the cost of delinquent payments and encourages customers to pay on time.  Protects all consumers by requiring a limit on late fees.

Jury Service Reform: HB 1185 (2005). Increases juror compensation from $15 to $50 per day, after the fifth day of service.  Provides leave time protections for employees.

Medical Liability Reform: Arbitration: Md. Cts. & Jud. Pro. § 3-2A-07.  Provides that if a legal fee is in dispute, an arbitration panel or a court will determine if the fee is reasonable.

Medical Liability Reform: Certificate of Merit: HB 188 (1998).  Requires a certificate of merit by a qualified expert to be filed in claims against licensed professionals.

Noneconomic Damages Reform: Uninsured Drivers: HB 714 (2001).  Provides that an individual driving a motor vehicle that is not covered by insurance is considered to have waived the right to recover noneconomic damages under specified circumstances.

Noneconomic Damages Reform: Wrongful Death: SB 283 (1994): Md. Cts. & Jud. Pro. §11-108.  Limits noneconomic damages in wrongful death actions to $500,000.  In cases where there are two or more beneficiaries, the limit is $700,000.  The reform somewhat counters the effect of the Streidel decision, which held that Maryland's $350,000 limit on noneconomic damages did not apply in wrongful death actions.

Noneconomic Damages Reform: Public Entity Lawsuits: SB 237 (1987).  Limits the award of noneconomic damages in public entity lawsuits to $200,000 per person and $500,000 per incident. 

Noneconomic Damages Reform: SB 558 (1986): Md. Cts. & Jud. Pro. §11-108.  Limits the award of noneconomic damages to $500,000.  The Court of Special Appeals of Maryland upheld the constitutionality of the noneconomic damages limit in Potomac Electric Co. v. Smith, 79 Md. App. 591, 558 A.2d 768 1989.  The $350,000 limit on noneconomic damages in personal injury actions did not violate the equal protection or right to jury trial provisions of the State Constitution.  Murphy v. Edmonds, 601 A.2d 102 (Md. 1992).

Officers and Directors Liability Reform: HB 273 (1988).  Limits the liability of directors and officers of for-profit corporations.

Officers and Directors Liability Reform: SB 223 (1988).  Limits the liability of directors and officers on non-profit corporations.

Periodic Payment of Future Damages: SB 558 (1986): Md. Cts. & Jud. Pro. § 11-109.  Allows a court to order the periodic payment of future damages.

Punitive Damages Reform: Owens-Illinois v. Zenobia, 601 A.2d 633 (Md. 1992).  Requires a plaintiff to prove punitive damages by “clear and convincing” evidence.