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S. 39

STATUS INFORMATION

General Bill
Sponsors: Senator Richardson
Document Path: l:\s-res\shr\007puni.mrh.doc

Introduced in the Senate on January 11, 2005
Currently residing in the Senate Committee on Judiciary

Summary: Punitive damages

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   12/8/2004  Senate  Prefiled
   12/8/2004  Senate  Referred to Committee on Judiciary
   1/11/2005  Senate  Introduced and read first time SJ-100
   1/11/2005  Senate  Referred to Committee on Judiciary SJ-100

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/8/2004

TO AMEND CHAPTER 32, TITLE 15 OF THE 1976 CODE, BY ADDING ARTICLE 3 TO PROVIDE FOR THE METHOD OF TRIAL, BURDEN OF PROOF, AND STANDARD OF REVIEW FOR AWARDING PUNITIVE DAMAGES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Title 15 of the 1976 Code is amended by adding:

Section 15-32-310.    As used in this article:

(1)    'Claimant' means a party to a civil action, including a plaintiff, counterclaimant, cross-claimant, or third-party plaintiff, seeking the recovery of punitive damages.

(2)    'Compensatory damages' means pecuniary damages arising from such things as medical expenses and medical care, rehabilitation services, custodial care, loss of earnings and earning capacity, loss of income, burial costs, loss of use of property, costs of repair or replacement of property, costs of obtaining substitute domestic services, loss of employment, loss of business or employment opportunities, and other monetary losses, and nonpecuniary damages arising from pain, suffering, inconvenience, physical impairment, disfigurement, mental anguish, emotional distress, loss of society and companionship, loss of consortium, injury to reputation, humiliation, other nonpecuniary damages, and any other theory of damages including, but not limited to, fear of loss, illness, or injury.

(3)    'Defendant' means a party to a civil action, including a counter defendant, cross-defendant, or third-party defendant, from whom a claimant seeks recovery of punitive damages.

(4)    'Punitive damages' means damages, other than compensatory damages, which are awarded pursuant to the provisions in Section 15-32-320. For purposes of this article, 'punitive damages' does not include treble damages, penalties, or statutory damages awarded pursuant to a statutory cause of action.

Section 15-32-320.    Subject to the provisions of this article, punitive damages may be awarded in a civil action to punish a defendant or to deter repetition of similar acts.

Section 15-32-330.    (A)    This article applies to every claim for punitive damages regardless of whether the claim for relief is based upon a common law right of action or based in equity. In an action subject to this article, in whole or in part, the provisions of this article prevail over another provision of law to the contrary.

(B)    The provisions of this article do not apply to actions brought under the South Carolina Tort Claims Act, as set forth in Chapter 78 of Title 15.

Section 15-32-340.    (A)    A civil action tried before a jury and seeking punitive damages must be conducted in a bifurcated trial. Each phase of the trial must be conducted before the same jury.

(B)    In the first phase of the trial, the jury shall:

(1)    determine and assign liability among the parties;

(2)    award compensatory damages against the liable parties; and

(3)    determine whether the claimant has shown by clear and convincing evidence that the conduct of the liable parties was wilful, wanton, reckless, or malicious.

(C)    If a jury has made a determination that the conduct of the liable parties was wilful, wanton, reckless, or malicious, a second phase of the trial must be held in which the jury determines the amount of punitive damages to be awarded. In determining the amount of punitive damages, the jury shall consider:

(1)    the degree of culpability of the liable parties;

(2)    the duration of the conduct;

(3)    the awareness or concealment of the conduct by the liable parties;

(4)    the existence of similar past conduct within South Carolina;

(5)    the likelihood that an award will deter these or other parties from similar conduct;

(6)    whether the award is reasonably related to the harm likely to result from the conduct;

(7)    the defendant's ability to pay; and

(8)    any other factor the court considers necessary for the jury to make an adequate and informed determination.

Section 15-32-350.    The court shall conduct a post trial review to ensure that an award of punitive damages is not grossly disproportionate to the severity of the offense or conduct of the liable parties. Upon conclusion of this review, the trial court shall state in a written opinion its reasons for upholding, overturning, or reducing the award. The trial court shall specifically address the evidence, or lack of evidence, as it relates to liability or the amount of punitive damages pursuant to the provisions of this article.

Section 15-32-360.    A demand for punitive damages must be pled, except for the amount, in the complaint."

SECTION    2.    This act takes effect July 1, 2005 and applies to all actions arising or accruing on or after the effective date.

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