ASSEMBLY, No. 813

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman FARRAGHER

An Act concerning punitive damage awards and amending P.L.1995, c.142.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 6 of P.L.1995, c.142 (C.2A:15-5.14) is amended to read as follows:

    6. a. Before entering judgment for an award of punitive damages, the trial judge shall ascertain that the award is reasonable in its amount and justified in the circumstances of the case, in light of the purpose to punish the defendant and to deter that defendant from repeating such conduct. If necessary to satisfy the requirements of this section, the judge may reduce the amount of or eliminate the award of punitive damages.

    b. No defendant shall be liable for punitive damages in any action in an amount in excess of five times the liability of that defendant for compensatory damages or $350,000, whichever is greater.

    c. The provisions of subsection b. of this section shall not apply to causes of action brought pursuant to P.L.1993, c.137 (C.2A:53A-21 et seq.), P.L.1945, c.169 (C.10:5-1 et seq.), P.L.1989, c.303 (C.26:5C-5 et seq.) or P.L.1992, c.109 (C.2A:61B-1), or in cases in which a defendant has been convicted pursuant to R.S.39:4-50 or section 2 of P.L.1981, c.512 (C.39:4-50.4a).

    d. There is established the "Tort Victim Compensation Fund." The "Tort Victim Compensation Fund" shall be a separate, nonlapsing fund administered by the Administrative Office of the Courts. All moneys deposited in that account shall be used to satisfy the claims of any person who has received a personal injury award and has been unable to collect the award despite exhausting all means of collecting the award.

    e. The court shall order that ten percent of every punitive damage award be deposited in the "Tort Victim Compensation Fund." No amount shall be collected until all costs, compensatory damages and attorney fees have been deducted.

    f. The Supreme Court may adopt Rules of Court appropriate or necessary to effectuate the purpose of this act.

(cf: P.L.1995, c.142, s.6)

    2. This act shall take effect immediately.

STATEMENT

    This bill would establish the "Tort Victim Compensation Fund." This separate, nonlapsing fund would be administered by the Administrative Office of the Courts. Under the provisions of the bill every person who recovers punitive damages in a personal injury action would be required to deposit ten percent of the punitive damage portion of the award in the fund. The moneys deposited in the fund would be used to satisfy the claims of any person who has received a personal injury award but has been unable to collect the award despite exhausting all means of collecting the award.

Establishes the "Tort Victim Compensation Fund."