Manufacturer Exemption from Punitive Damages: H.B. 2503 (2012) - ATRA

Manufacturer Exemption from Punitive Damages: H.B. 2503 (2012)

| November 15, 2016

Establishes reasonable liability rules for manufacturers, service providers and sellers

Establishes reasonable liability rules for manufacturers, service providers and sellers of products with respect to punitive damages when their product or service is in compliance with state or federal laws/regulations. Recognizes that the specific purpose of an award of punitive damages is to punish and deter unlawful conduct, and a defendant should not be punished in civil litigation when it is in compliance with applicable laws and regulatory requirements. Does not apply if it can be demonstrated that the defendant engaged in the following conduct: (1) the business withheld or misrepresented information utilized to gain regulatory approval; (2) the defendant mad an illegal payment to an official to obtain approval of the product or service; or, (3) the defendant sold a product or service after the government ordered the product or service to be removed from the marketplace.

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