Multiple Punitive Damages Fairness Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multiple Punitive Damages Fairness 
Act of 1995''.

SEC. 2. DEFINITIONS.

    For purposes of this Act, the term--
            (1) ``claimant'' means any person who brings a civil action 
        and any person on whose behalf such an action is brought; if 
        such an action is brought through or on behalf of an estate, 
        the term includes the claimant's decedent; if such action is 
        brought through or on behalf of a minor or incompetent, the 
        term includes the claimant's legal guardian;
            (2) ``harm'' means any legally cognizable wrong or injury 
        for which punitive damages may be imposed;
            (3) ``defendant'' means any individual, corporation, 
        company, association, firm, partnership, society, joint stock 
        company, or any other entity (including any governmental 
        entity);
            (4) ``punitive damages'' means damages awarded against any 
        person or entity to punish or deter such person or entity, or 
        others, from engaging in similar behavior in the future;
            (5) ``specific findings of fact'' means findings in written 
        form focusing on specific behavior of a defendant; and
            (6) ``State'' means any State of the United States, the 
        District of Columbia, Puerto Rico, the Northern Mariana 
        Islands, the Virgin Islands, Guam, American Samoa, and any 
        other territory or possession of the United States, or any 
        political subdivision thereof.

SEC. 3. MULTIPLE PUNITIVE DAMAGES FAIRNESS.

    (a) Findings.--The Congress finds the following:
            (1) Multiple or repetitive imposition of punitive damages 
        for harms arising out of a single act or course of conduct may 
        deprive a defendant of all the assets or insurance coverage of 
        the defendant, and may endanger the ability of future claimants 
        to receive compensation for basic out-of-pocket expenses and 
        damages for pain and suffering.
            (2) The detrimental impact of multiple punitive damages 
        exists even in cases that are settled, rather than tried, 
        because the threat of punitive damages being awarded results in 
        a higher settlement than would ordinarily be obtained. To the 
        extent this premium exceeds what would otherwise be a fair and 
        reasonable settlement for compensatory damages, assets that 
        could be available for satisfaction of future compensatory 
        claims are dissipated.
            (3) Fundamental unfairness results when anyone is punished 
        repeatedly for what is essentially the same conduct.
            (4) Federal and State appellate and trial judges, and well-
        respected commentators, have expressed concern that multiple 
        imposition of punitive damages may violate constitutionally 
        protected due process rights.
            (5) Multiple imposition of punitive damages may be a 
        significant obstacle to comprehensive settlement negotiations 
        in repetitive litigation.
            (6) Limiting the imposition of multiple punitive damages 
        awards would facilitate resolution of mass tort claims 
        involving thousands of injured claimants.
            (7) Federal and State trial courts have not provided 
        adequate solutions to problems caused by the multiple 
        imposition of punitive damages because of a concern that such 
        courts lack the power or authority to prohibit subsequent 
        awards in other courts.
            (8) Individual State legislatures can create only a partial 
        remedy to address problems caused by the multiple imposition of 
        punitive damages, because each State lacks the power to control 
        the imposition of punitive damages in other States.
    (b) General Rule.--Except as provided in subsection (c), punitive 
damages shall be prohibited in any civil action in any State or Federal 
court in which such damages are sought against a defendant based on the 
same act or course of conduct for which punitive damages have already 
been sought or awarded against such defendant.
    (c) Circumstances for Award.--If the court determines in a pretrial 
hearing that the claimant will offer new and substantial evidence of 
previously undiscovered, additional wrongful behavior on the part of 
the defendant, other than the injury to the claimant, the court may 
award punitive damages in accordance with subsection (d).
    (d) Limitations on Award.--A court awarding punitive damages 
pursuant to subsection (c) shall--
            (1) make specific findings of fact on the record to support 
        the award;
            (2) reduce the amount of the punitive portion of the damage 
        award by the sum of the amounts of punitive damages previously 
        paid by the defendant in prior actions based on the same act or 
        course of conduct; and
            (3) prohibit disclosure to the jury of the court's 
        determination and action under this subsection.
    (e) Applicability and Preemption.--(1) Except as provided in 
paragraph (3), this section shall apply to--
            (A) any civil action brought on any theory where punitive 
        damages are sought based on the same act or course of conduct 
        for which punitive damages have already been sought or awarded 
        against the defendant; and
            (B) all civil actions in which the trial has not commenced 
        before the effective date of this Act.
    (2) Except as provided in paragraph (3), this section shall apply 
to all civil actions in which the trial has not commenced before the 
effective date of this Act.
    (3) This section shall not apply to any civil action involving 
damages awarded under any Federal or State statute that prescribes the 
precise amount of punitive damages to be awarded.
    (4) This section shall not preempt or supersede any existing 
Federal or State law limiting or otherwise restricting the recovery for 
punitive damages to the extent that such law is inconsistent with the 
provisions of this section.

SEC. 4. EFFECT ON OTHER LAW.

    Nothing in this Act shall be construed to--
            (1) waive or affect any defense of sovereign immunity 
        asserted by any State under any law;
            (2) supersede any Federal law;
            (3) waive or affect any defense of sovereign immunity 
        asserted by the United States;
            (4) affect the applicability of any provision of chapter 97 
        of title 28, United States Code;
            (5) preempt State choice-of-law rules with respect to 
        claims brought by a foreign nation or a citizen of a foreign 
        nation;
            (6) affect the right of any court to transfer venue or to 
        apply the law of a foreign nation or to dismiss a claim of a 
        foreign nation or of a citizen of a foreign nation on the 
        ground of inconvenient forum; or
            (7) create a cause of action for punitive damages.

Summary: Multiple Punitive Damages Fairness Act of 1995 - Prohibits punitive damages in any civil action in State or Federal court in which such damages are sought against a defendant based on the same act or course of conduct for which punitive damages have already been sought or awarded against such defendant. Permits the court to award such punitive damages, subject to specified limitations, upon determining in a pretrial hearing that the claimant will offer new and substantial evidence of previously undiscovered, additional wrongful behavior on the part of the defendant, other than the injury to the claimant. Directs a court awarding punitive damages pursuant to such provision to: (1) make specific findings of fact on the record to support the award. (2) reduce the amount of the punitive portion of the damage award by the sum of the amounts of punitive damages previously paid by the defendant in prior actions based on the same act or course of conduct. And (3) prohibit disclosure to the jury of the court's determination and action. Makes this Act inapplicable to any civil action involving damages awarded under any Federal or State statute that prescribes the precise amount of punitive damages to be awarded.