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7 LONG TITLE
8 General Description:
9 This bill addresses agreements to waive or limit liability for punitive damages.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ prohibits a court from enforcing agreements to waive or limit liability for punitive
14 damages; and
15 ▸ provides that certain financial institutions are exempt from the prohibition described
16 above.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 78B-8-204, Utah Code Annotated 1953
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25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 78B-8-204 is enacted to read:
27 78B-8-204. Agreements to waive or limit punitive damages unenforceable.
28 (1) As used in this section:
29 (a) "Agreement" means a written, verbal, or implied contract.
30 (b) "Court" means the same as that term is defined in Section 78B-11-102.
31 (c) "Insurance" means the same as that term is defined in Section 31A-1-301.
32 (2) Except as provided in Subsection (3), a court may not enforce an agreement to
33 waive or limit liability for punitive damages.
34 (3) Subsection (2) does not apply:
35 (a) to an agreement entered into before May 3, 2023;
36 (b) to an agreement entered into to settle or release a claim or cause of action for
37 damages or injury, regardless of whether litigation is pending; or
38 (c) if a party to an agreement is a financial institution or an affiliate of a financial
39 institution under Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801, et seq., unless
40 the agreement is for the sale or provision of insurance.