Sa

Rewblis of he Philipines
HOUSE OF REPRESENTATIVES
Quexow City

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CATE: JAN 18
x TIME: 2S\pm

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8398

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING FOR THE CIVIL LIABILITY OF DRUG DEALERS
IN FAVOR OF PERSONS INJURED BY ILLEGAL DRUGS

This bill seeks to provide a civil remedy for damages to persons injured as a result of the
use of illegal drugs. To the extent possible, the cost of damage caused by the market for
illegal drugs will be shifted to those who illegally profit from that market. This may deter
those who have not yet entered into the distribution market for illegal drugs by
establishing the prospect of substantial monetary loss. Illegal drug users will also be
given an incentive to identify and pursue those who have provided them with illegal drugs
in the past.

Through this bill a new cause of action is established in favor of any person or entity
suffering damages or increased expense because of illegal drug use, including the illegal
drug user himself, against any person or entity that sold or was in the chain of distribution
of the illegal drugs used by the individual illegal drug user and any person or entity
involved in the sale or distribution of the type of illegal drugs used by that individual. The
bill sets forth certain exceptions, what damages may be recovered, rules on contributory
negligence, contribution among joint tort feasors, prejudgment attachments and other

procedures.

Luly IUND “LRA’ . VILLAFUERTE, JR.

EEPRES;
Satie oS
" RECEIVED 2

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Rewblec of the Phillies

HOUSE OF REPRESENTATIVES
wexen City
Quexow Cit

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8398

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING FOR THE CIVIL LIABILITY OF DRUG DEALERS
IN FAVOR OF PERSONS INJURED BY ILLEGAL DRUGS

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Drug Dealer Liability Act.”

SECTION 2. Declaration of Policy. — It is the policy of the state to promote the health and
well being of our people and to maintain peace and order. To this end, it is necessary to
provide measures that will help eradicate the use of illegal drugs by allowing the
facilitation of recovery of civil damages against drug dealers aside from the penal
sanctions under existing law.

SECTION 3. Definition of Terms. — For the purpose of this Act, the term:

(A) “Illegal drug” shall have the same meaning as the term “dangerous drugs” under
Republic Act No. 9165, as amended, also known as the Dangerous Drugs Act of
2002, and shall include methamphetamine hydrochloride, commonly known as
“shabu.”

“Individual drug user" means the individual whose use of a specified illegal drug is
the basis of an action brought under this Act.

“Participate in the marketing of illegal drugs” means to transport import into the
Philippines, sell, possess with the intent to sell, furnish, administer or give away an
illegal drug. “Participate in the Marketing of Illegal Drugs" does not include the
purchase or receipt of an illegal drug for personal use.

“Period of Illegal drug use” means in relation to the individual illegal drug user, the
period of time from the individual's first use of a specified illegal drug to the accrual

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of the cause of action. The period of illegal drug use is presumed to commence two
(2) years before the cause of action accrues unless the defendant proves otherwise.
(E) ‘Person’ means an individual, goverment entity, corporation, firm, trust,
partnership, or incorporated or unincorporated association existing under or
authorized by existing law or the laws of a foreign country.
(F) “Specified illegal drug” means the type of illegal drug used by an individual illegal
drug user which is the basis of an action brought under this Act.

SECTION 4. Persons Injured By an Individual legal Drug User. - Any one or more of the

following persons may bring an action for damages caused by an individual's use of an

illegal drug:

(A) A parent, legal guardian, child, spouse, or sibling of the individual illegal drug user;

(B) A person who was exposed to an illegal in utero;

(C) An employer of an individual drug user; or

(D) A medical facility, insurer, government entity, employer, or other entity that funded a
drug treatment program or employee assistance program for the individual illegal
drug user or that otherwise expended money in behalf of the individual drug user or
a dependent of the individual drug user; and

(E) A person injured as a result of the willful, reckless, or negligent actions of an

individual illegal drug user.

SECTION 5. Persons Liable for Damages. — A person entitled to seek damages under

the preceding section may seek damages from one or more of the following:

(A) A person who sold, administered or furnished, or is in the chain of the distribution,
an illegal drug used by the individual drug user; or

(B) If established by clear and convincing evidence, a person who within this state
knowingly participated in the marketing of the specified illegal drug used by an
individual illegal drug user during the individual drug user's period of illegal drug use.

SECTION 6. Damages. — A person injured by an illegal drug user under the preceding

section may bring an action to recover all of the following damages:

(A) Actual damages, including but not limited to the cost of treatment and rehabilitation,

medical expenses, loss of economic or educational potential, loss of productivity,

absenteeism, support expenses, accidents or injury, or any other pecuniary loss

proximately caused by an individual's use of an illegal drug;

Moral damages, including but not limited to physical and emotional pain, suffering,

physical impairment, emotional distress, disfigurement, loss of employment, loss of

companionship, services, and consortium, and other non-pecuniary loss proximately

caused by an individual's use of an illegal drug;

(C) Exemplary damages;

(D) Reasonable attorney's fees; and

(E) Costs of suit, including, but not limited to, expenses for expert witnesses and
expenses for investigative services to determine the identity of the defendants and
the location of any assets of the defendants.

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SECTION 7. Suits by Illegal Drug User. — An individual illegal drug user entitled to bring


an action under this Act may seek damages only from a person who sold, administered,
or furnished, or is in the chain of distribution of an illegal drug used by the individual
illegal drug user.

SECTION 8. Limited Damages. — An individual illegal drug user entitled to bring an

action under this Act may recover only the following damages:

(A) Actual damages, including but not limited to the cost of treatment and rehabilitation,
medical expenses, loss of economic or educational potential, loss of productivity,
absenteeism, support expenses, accidents or injury, or any other pecuniary loss
proximately caused by an individual's use of an illegal drug;

(B) Reasonable attorney's fees; and

(C) Costs of suit, including but not limited to expenses for expert witnesses and expense
for investigative services to determine the identity of the defendants and the location
of any assets of the defendants.

SECTION 9. Non-Exclusiveness; Exceptions to Liability. - Any cause of action
established under this Act shall be in addition to and not in lieu of any other cause of
action available to the plaintiff.

A law enforcement officer or agency or the state, or a person acting at the direction of a
law enforcement officer or agency or the state is not liable for participating in the
marketing of illegal drugs if the participation is in furtherance of an official investigation.

SECTION 10. Contributory Negligence. - Contributory negligence shall not bar recovery
by an individuat illegal drug user, but may diminish the award of any damages in
proportion to the amount of negligence attributable to the individual illegal drug user.
Contributory negligence shall not be attributable to a plaintiff who is not an individual
illegal drug user, unless the plaintiff wilfully and knowingly gave illegal drugs or money
for the purchase of the specified illegal drug

SECTION 11. Contribution Among and Recovery from Multiple Defendants. — A person
subject to liability under this Act has a right of contribution against any other person
subject to liability under this Act. Contribution may be enforced either in the original
action or by a separate action brought for that purpose. A plaintiff may seek recovery in
accordance with this Act and other laws against a person whom a defendant has
asserted a right of contribution.

SECTION 12. Effect of Criminal Drug Conviction. — A person against whom recovery is
sought who has a criminal conviction for other than mere possession of the specified
illegal drug under the “Dangerous Drugs Act of 2002" is estopped from denying
participation in the illegal drug market. Such a conviction is also a prima facie evidence
of the person's participation in the illegal drug market during the two years preceding the
date of an act giving rise to a conviction.

(B) The absence of a conviction of a person against whom recovery is sought does not
bar an action against that person.

SECTION 13. Prejudgment Attachment and Execution of Judgment. — Except as


provided in subsection (c) of this section, a plaintiff under Rule 57 of the Rules of Court
without the requirements provided for in Section 1 of the said Rule 57 against all of the
assets of a defendant sufficient to satisfy a potential award. If attachment is issued, a
defendant is entitled to an immediate hearing. The attachment may be removed if the
defendant demonstrates that the assets will be available for a potential award of if the
defendant posts a bond sufficient to cover a potential award.

A person against whom a judgment has been rendered under this Act is not eligible to
exempt any property, of whatever kind, from process to levy or process to execute on the
judgment.

‘Any assets sought to satisfy a judgment under this Act that have been named in a
forfeiture action pending on the date that the attachment under subsection (a) of this
section is sought or have been seized forfeiture by any government agency may not be
attached or used to satisfy a judgment unless and until the assets have been released
following conclusion of the forfeiture action or released by the agency that seized the
assets.

SECTION 14. Statute of Limitations. - Except as otherwise provided by this section, a
claim under this Act shall not be brought more than two years after the cause of action
accrues under this Act when a person who may recover has reason to know of the harm
from illegal drug use that is the basis of the cause of the action and has reason to know
that the illegal drug use is the cause of the harm.

For a plaintiff, the statute of limitations under this section is tolled while the individual
potential plaintiff is incapacitated by the use of an illegal drug to the extent that the
individual cannot reasonably be expected to seek recovery under this Act or as
otherwise provided by law. For a defendant, the statute of limitations under this section
does not expire until six (6) months after the individual potential defendant is convicted of
a criminal offense or as otherwise provided by law.

SECTION 15. Stay of Action.- On motion by a government agency involved in a drug
investigation or prosecution, an action brought under this Act shall be stayed until the
completion of the criminal investigation or prosecution that gave rise to the motion for a
stay of the action.

SECTION 16, Non-Retroactivity, ~ No cause of action shall accrue based upon any act
by a defendant that occurred prior to the effective date of this Act.

SECTION 17. Separability Clause. — If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.

SECTION 18. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or
inconsistent with, the provision of this Act is hereby repealed, modified or amended
accordingly.

SECTION 19. Effectivity Clause. This Act shall take effect fifteen (15) days after its


publication in at least two (2) newspapers of general circulation.

Approved,