Summary
The Noneconomic Damage Awards Act provides that an award for noneconomic damages shall not exceed [$250,000[1]] or the amount awarded in economic damages, whichever amount is greater. Economic damages are fully compensated and are not subject to the limitation.
Model Legislation
Section 1. {Title}
This Act shall be known and may be cited as the Noneconomic Damage Awards Act.
Section 2. {Definitions}
The following words, as used in this Act, shall have the meaning set forth below, unless the context clearly requires otherwise:
(A) “Noneconomic damages” means subjective, 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, and other nonpecuniary damages.
(B) “Economic damages” means objectively verifiable pecuniary damages arising from 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 objectively verifiable monetary losses.
Section 3. {Damage awards}
In any personal injury action, the prevailing plaintiff may be awarded:
(A) Compensation for economic damages suffered by the injured plaintiff; and
(B) Compensation for the noneconomic damages suffered by the injured plaintiff not to exceed:
(1) $250,000; or
(2) The amount awarded in economic damages, whichever amount is greater.
Section 4. {Special damages findings required}
(A) If liability is found in a personal injury or wrongful death action, then the trier of fact, in addition to other appropriate findings, shall make separate findings for each claimant specifying the amount of:
(1) Any past damages; and
(2) Any future damages and the periods over which they will accrue, on an annual basis, for each of the following types of damages:
(a) Medical and other costs of health care;
(b) Other economic loss; and
(c) Noneconomic loss.
(B) The calculation of all future medical care and other costs of health care and future noneconomic loss must reflect the costs and losses during the period of time the claimant will sustain those costs and losses. The calculation for other economic loss must be based on the losses during the period of time the claimant would have lived but for the injury upon which the claim is based.
Section 5. {Severability clause.}
Section 6. {Repealer clause.}
Section 7. {Effective date.}
Approved by ALEC Board of Directors on May 2002.
Reapproved by ALEC Board of Directors on January 28, 2013.
[1] To allow legislature to make a judgment as to what is appropriate for the state and that particular period of time.”
Keyword Tags: noneconomic damages