Congress 107 - HR 1805 - Small Business Liability Reform Act of 2001

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Cosponsors

Topics

Agriculture and Food Alcoholic beverages Civil actions and liability Commerce Damages Drug abuse Drunk driving Evidence (Law) Federal preemption Government Operations and Politics Law Lease and rental services Liability (Law) Liability for traffic accidents Limitation of actions Negligence Products liability Punitive damages Retail trade Small business State laws Transportation and Public Works Warranties

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Summary

Small Business Liability Reform Act of 2001 - Allows punitive damages to be awarded against a small business only if the claimant establishes by clear and convincing evidence that conduct carried out by the defendant with a conscious, flagrant indifference to the rights or safety of others was the proximate cause of the harm that is the subject of the action. Limits such punitive damages to the lesser of three times the amount awarded for economic and noneconomic losses, or $250,000. Makes such limitation inapplicable if the court finds that the defendant acted with specific intent to cause the type of harm for which the action is brought. Provides liability limitation exceptions.

States that in any civil action against a small business: (1) each defendant shall be liable only for the amount of noneconomic loss allocated to that defendant in direct proportion to the percentage of responsibility of that defendant for the harm caused to the plaintiff; and (2) the court shall render a separate judgment against each defendant describing such percentage of responsibility.

Excepts from such liability limitations specified misconduct of a defendant.

Mandates that, in any product liability action covered by this Act, a product seller other than a manufacturer shall be liable to a claimant only if such claimant establishes that: (1) the product that caused the harm was sold, rented, or leased by the seller, the seller failed to exercise reasonable care with respect to the product, and such failure was the proximate cause of harm to the plaintiff; (2) the seller made an express warranty applicable to such product, the product failed to conform to the warranty, and such failure caused the harm to the plaintiff; or (3) the product seller engaged in intentional wrongdoing, and such wrongdoing caused the harm to the plaintiff.

Actions

May 22, 2001

Referred to the Subcommittee on Commerce, Trade and Consumer Protection, for a period to be subsequently determined by the Chairman.
May 10, 2001

Referred to the Committee on the Judiciary, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
May 10, 2001

Sponsor introductory remarks on measure. (CR E783-784)
May 10, 2001

Introduced in House

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