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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to punitive damages.
10 Highlighted Provisions:
11 This bill:
12 ▸ removes the requirement for the state to collect a portion of punitive damage
13 payments that are received in certain driving under the influence cases.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 78B-8-201, as last amended by Laws of Utah 2011, Chapter 79
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22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 78B-8-201 is amended to read:
24 78B-8-201. Basis for punitive damages awards -- Section inapplicable to DUI
25 cases or providing illegal controlled substances -- Division of award with state.
26 (1) (a) Except as otherwise provided by statute, punitive damages may be awarded only
27 if compensatory or general damages are awarded and it is established by clear and convincing
28 evidence that the acts or omissions of the tortfeasor are the result of willful and malicious or
29 intentionally fraudulent conduct, or conduct that manifests a knowing and reckless indifference
30 toward, and a disregard of, the rights of others.
31 (b) The limitations, standards of evidence, and standards of conduct of Subsection
32 (1)(a) do not apply to any claim for punitive damages arising out of the tortfeasor's:
33 (i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under the
34 influence of any drug or combination of alcohol and drugs as prohibited by Section 41-6a-502;
35 (ii) causing death of another person by providing or administering an illegal controlled
36 substance to the person under Section 78B-3-801; or
37 (iii) providing an illegal controlled substance to any person in the chain of transfer that
38 connects directly to a person who subsequently provided or administered the substance to a
39 person whose death was caused in whole or in part by the substance.
40 (c) The award of a penalty under Section 78B-3-108 regarding shoplifting is not
41 subject to the prior award of compensatory or general damages under Subsection (1)(a) whether
42 or not restitution has been paid to the merchant prior to or as a part of a civil action under
43 Section 78B-3-108.
44 (2) Evidence of a party's wealth or financial condition shall be admissible only after a
45 finding of liability for punitive damages has been made.
46 (a) Discovery concerning a party's wealth or financial condition may only be allowed
47 after the party seeking punitive damages has established a prima facie case on the record that
48 an award of punitive damages is reasonably likely against the party about whom discovery is
49 sought and, if disputed, the court is satisfied that the discovery is not sought for the purpose of
50 harassment.
51 (b) Subsection (2)(a) does not apply to any claim for punitive damages arising out of
52 the tortfeasor's:
53 (i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under the
54 influence of any drug or combination of alcohol and drugs as prohibited by Section 41-6a-502;
55 (ii) causing death of another person or causing a person to be addicted by providing or
56 administering an illegal controlled substance to the person under Section 78B-3-801; or
57 (iii) providing an illegal controlled substance to any person in the chain of transfer that
58 connects directly to a person who subsequently provided or administered the substance to a
59 person whose death was caused in whole or in part by the substance.
60 (3) This subsection applies to a judgment entered on or before April 30, 2024.
61 (a) In any case where punitive damages are awarded, the court shall enter judgment as
62 follows:
63 (i) for the first $50,000, judgment shall be in favor of the injured party; and
64 (ii) any amount in excess of $50,000 shall be divided equally between the state and the
65 injured party, and judgment to each entered accordingly.
66 (b) (i) The actual and bona fide attorney fees and costs incurred in obtaining and
67 collecting the judgment for punitive damages shall be considered to have been incurred by the
68 state and the injured party in proportion to the judgment entered in each party's behalf.
69 (A) The state and injured party shall be responsible for each one's proportionate share
70 only.
71 (B) The state is liable to pay its proportionate share only to the extent it receives
72 payment toward its judgment.
73 (ii) If the court awards attorney fees and costs to the injured party as a direct result of
74 the punitive damage award, the state shall have a corresponding credit in a proportionate
75 amount based on the amounts of the party's respective punitive damage judgments. This credit
76 may be applied as an offset against the amount of attorney fees and costs charged to the state
77 for obtaining the punitive damage judgment.
78 (c) The state shall have all rights due a judgment creditor to collect the full amounts of
79 both punitive damage judgments until the judgments are fully satisfied.
80 (i) Neither party is required to pursue collection.
81 (ii) In pursuing collection, the state may exercise any of its collection rights under
82 Section 63A-3-301 et seq., Section 63A-3-502 et seq., and any other statutory provisions. Any
83 amounts collected on these judgments by either party shall be held in trust and distributed as
84 set forth in Subsection (3)(e).
85 (d) Unless all affected parties, including the state, expressly agree otherwise, collection
86 on the punitive damages judgment shall be deferred until all other judgments have been fully
87 paid. Any payment by or on behalf of any judgment debtor, whether voluntary, by execution,
88 or otherwise, shall be distributed and applied in the following order:
89 (i) to the judgment for compensatory damage and any applicable judgment for attorney
90 fees and costs;
91 (ii) to the initial $50,000 of the punitive damage judgment;
92 (iii) to any judgment for attorney fees and costs awarded as a direct result of the
93 punitive damages; and
94 (iv) to the remaining judgments for punitive damages.
95 (e) Any partial payments shall be distributed equally between the state and injured
96 party.
97 (f) After the payment of attorney fees and costs, all amounts paid on the state's
98 judgment shall be remitted to the state treasurer to be deposited into the General Fund.
99 (4) A judgment entered on or after May 1, 2024, is not subject to the requirements of
100 Subsection (3).
101 Section 2. Effective date.
102 This bill takes effect on May 1, 2024.