Public Citizen is a consumer group founded by Ralph Nader that works for a cleaner environment, safer medical products and a more open, democratic government. Business interests have lobbied relentlessly at both the state and federal levels to convince public officials to limit the liability of corporations responsible for causing injuries or death.
Punitive damages are one of the least understood features of the civil justice system.
Punitive damages are designed to punish a defendant for grossly inappropriate actions and, in so doing, to deter future such actions by signaling that their consequences can be severe. For many years, the U.S. Congress has considered federal products liability legislation that would, among other things, cap the amount of punitive damages that corporations could be required to pay. This cap would apply nationwide, except where state law provides a more restrictive cap, in which case the state law would prevail. No matter what form, a punitive damages cap contained in federal products liability legislation would fundamentally disrupt this country's products liability system, which has operated pursuant to state law for over 200 years. Potential corporate liability for punitive damages in products liability cases is an integral part of the deterrence function.