Bill > HB1099

This bill modifies Maryland law regarding punitive damages in civil actions by establishing a stricter standard for awarding such damages and introducing a mandatory surcharge. The bill defines "gross negligence" as a severe form of disregard for others' safety that includes willful misconduct, repeated harmful actions, or demonstrating indifference to legal obligations. Under the new provisions, plaintiffs can only be awarded punitive damages if they prove gross negligence by "clear and convincing evidence," which is a higher legal standard than previous requirements. The bill also mandates that when punitive damages are awarded, the defendant must pay an additional 50% surcharge, which will be deposited into the Blueprint for Maryland's Future Fund, a state education funding mechanism. Importantly, this surcharge is considered an extra payment that does not reduce the original punitive damages award, and juries will not be informed about its existence. The legislation explicitly states that it applies only to future cases filed after its effective date of October 1, 2025, and is intended to overturn a previous legal precedent set in a 1992 court case regarding punitive damages criteria.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1099?ys=2025RS