Orrin Hatch: “I wish to discuss language in the Gorton- Rockefeller-Dole substitute amendment concerning punitive damages. The…”

“I wish to discuss language in the Gorton- Rockefeller-Dole substitute amendment concerning punitive damages. The substitute language includes a formula for calculating the amount of punitive damages allowed to be awarded to a claimant against a defendant. This formula originated with Senator Snowe and was added to the Dole-Exon-Hatch amendment last week, with my support. It remains part of the underlying substitute amendment. The formula to which I refer provides generally that the amount awarded to the claimant for punitive damages in a products liability action shall not exceed the greater of two times the sum of the amount awarded for economic loss and noneconomic loss, or $250,000. In the case of a small business, a special rule provides that the amount of punitive damages shall not exceed the lesser of two times the sum of the amount awarded to the claimant for economic loss and noneconomic loss, or $250,000. It is my understanding that the formula for calculating the amount of punitive damages is intended to take into account the separate provision in the bill that makes a defendant only severally liable for noneconomic losses.”