02-27 17:06 1st Sub. (Buff) H.B. 154
Brady Brammer proposes the following substitute bill:
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Punitive Damages Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Andrew Stoddard
Senate Sponsor: Stephanie Pitcher
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LONG TITLE
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General Description:
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This bill modifies provisions related to punitive damages.
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Highlighted Provisions:
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This bill:
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▸ modifies provisions of the Victim Services Restricted Account; and
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▸ requires, after a set date, that the state's portion of punitive damage payments that are
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received in certain driving under the influence cases are deposited into the Victims
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Services Restricted Account.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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63M-7-219, as enacted by Laws of Utah 2023, Chapter 150
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78B-8-201, as last amended by Laws of Utah 2011, Chapter 79
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 63M-7-219 is amended to read:
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63M-7-219 . Victim Services Restricted Account -- Funding -- Uses.
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(1) There is created in the General Fund a restricted account known as the "Victim Services
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Restricted Account."
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(2) The Victim Services Restricted Account is funded by:
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(a) money appropriated to the account by the Legislature;
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(b) money deposited from a judgment in favor of the state pursuant to the requirements
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of Section 78B-8-201;
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[(b)] (c) gifts, donations, or grants from private entities or individuals; and
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[(c)] (d) interest earned on money in the account.
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(3) Subject to appropriation, the Legislature shall use the funds in the Victim Services
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Restricted Account to fund services for victims, including using funds for:
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(a) services provided by Children's Justice Centers;
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(b) services for sexual assault and domestic violence victims;
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(c) services recommended by the Utah Victim Services Commission under Section
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63M-7-804; or
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(d) any administrative costs associated with implementing victim services.
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Section 2. Section 78B-8-201 is amended to read:
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78B-8-201 . Basis for punitive damages awards -- Section inapplicable to DUI
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cases or providing illegal controlled substances -- Division of award with state -- Deposit
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of state judgment payments.
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(1)(a) Except as otherwise provided by statute, punitive damages may be awarded only
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if compensatory or general damages are awarded and it is established by clear and
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convincing evidence that the acts or omissions of the tortfeasor are the result of
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willful and malicious or intentionally fraudulent conduct, or conduct that manifests a
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knowing and reckless indifference toward, and a disregard of, the rights of others.
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(b) The limitations, standards of evidence, and standards of conduct of Subsection (1)(a)
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do not apply to any claim for punitive damages arising out of the tortfeasor's:
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(i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under
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the influence of any drug or combination of alcohol and drugs as prohibited by
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Section 41-6a-502;
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(ii) causing death of another person by providing or administering an illegal
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controlled substance to the person under Section 78B-3-801; or
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(iii) providing an illegal controlled substance to any person in the chain of transfer
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that connects directly to a person who subsequently provided or administered the
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substance to a person whose death was caused in whole or in part by the substance.
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(c) The award of a penalty under Section 78B-3-108 regarding shoplifting is not subject
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to the prior award of compensatory or general damages under Subsection (1)(a)
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whether or not restitution has been paid to the merchant prior to or as a part of a civil
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action under Section 78B-3-108.
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(2) Evidence of a party's wealth or financial condition shall be admissible only after a
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finding of liability for punitive damages has been made.
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(a) Discovery concerning a party's wealth or financial condition may only be allowed
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after the party seeking punitive damages has established a prima facie case on the
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record that an award of punitive damages is reasonably likely against the party about
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whom discovery is sought and, if disputed, the court is satisfied that the discovery is
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not sought for the purpose of harassment.
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(b) Subsection (2)(a) does not apply to any claim for punitive damages arising out of the
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tortfeasor's:
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(i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under
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the influence of any drug or combination of alcohol and drugs as prohibited by
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Section 41-6a-502;
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(ii) causing death of another person or causing a person to be addicted by providing
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or administering an illegal controlled substance to the person under Section
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78B-3-801; or
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(iii) providing an illegal controlled substance to any person in the chain of transfer
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that connects directly to a person who subsequently provided or administered the
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substance to a person whose death was caused in whole or in part by the substance.
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(3)(a) In any case where punitive damages are awarded, the court shall enter judgment as
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follows:
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(i) for the first $50,000, judgment shall be in favor of the injured party; and
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(ii) any amount in excess of $50,000 shall be divided equally between the state and
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the injured party, and judgment to each entered accordingly.
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(b)(i) The actual and bona fide attorney fees and costs incurred in obtaining and
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collecting the judgment for punitive damages shall be considered to have been
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incurred by the state and the injured party in proportion to the judgment entered in
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each party's behalf.
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(A) The state and injured party shall be responsible for each one's proportionate
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share only.
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(B) The state is liable to pay its proportionate share only to the extent it receives
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payment toward its judgment.
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(ii) If the court awards attorney fees and costs to the injured party as a direct result of
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the punitive damage award, the state shall have a corresponding credit in a
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proportionate amount based on the amounts of the party's respective punitive
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damage judgments. This credit may be applied as an offset against the amount of
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attorney fees and costs charged to the state for obtaining the punitive damage
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judgment.
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(c) The state shall have all rights due a judgment creditor to collect the full amounts of
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both punitive damage judgments until the judgments are fully satisfied.
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(i) Neither party is required to pursue collection.
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(ii) In pursuing collection, the state may exercise any of its collection rights under
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Section 63A-3-301 et seq., Section 63A-3-502 et seq., and any other statutory
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provisions. Any amounts collected on these judgments by either party shall be
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held in trust and distributed as set forth in Subsection (3)(e).
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(d) Unless all affected parties, including the state, expressly agree otherwise, collection
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on the punitive damages judgment shall be deferred until all other judgments have
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been fully paid. Any payment by or on behalf of any judgment debtor, whether
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voluntary, by execution, or otherwise, shall be distributed and applied in the
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following order:
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(i) to the judgment for compensatory damage and any applicable judgment for
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attorney fees and costs;
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(ii) to the initial $50,000 of the punitive damage judgment;
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(iii) to any judgment for attorney fees and costs awarded as a direct result of the
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punitive damages; and
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(iv) to the remaining judgments for punitive damages.
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(e) Any partial payments shall be distributed equally between the state and injured party.
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(f) After the payment of attorney fees and costs, all amounts paid on the state's judgment
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shall be remitted:
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(i) for an amount received on or before May 11, 2025, to the state treasurer to be
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deposited into the General Fund[.] ; and
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(ii) for an amount received after May 11, 2025, to the state treasurer to be deposited
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into the Victims Services Restricted Fund established in Section 63M-7-219.
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Section 3. Effective Date.
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This bill takes effect on May 7, 2025.
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