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HB 1099

Civil Actions - Punitive Damage Awards - Surcharge

2025 Regular Session Introduced by Ben Barnes and 1 co-sponsor

Maryland bill establishes state surcharge on punitive damage awards in civil cases to generate revenue while reducing compensation to injury claimants.

Hearing 3/05 at 3:00 p.m.
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Bill Summary · HB 1099

Legislative bill overview

HB 1099 would establish a surcharge on punitive damage awards in civil litigation cases in Maryland. The bill requires a portion of punitive damages granted by courts to be collected as a state surcharge, with the collected funds directed to a specified purpose (likely a state fund or program, though the specific allocation mechanism is not detailed in the provided information).

Why is this important

Punitive damages are already rare in civil cases and represent a small fraction of civil litigation outcomes. This surcharge would create a new revenue stream for the state while potentially affecting how juries and judges approach punitive damage awards. The policy raises questions about the appropriate balance between compensating injured parties and generating state revenue from civil litigation.

Potential points of contention

  • Impact on plaintiffs: Survivors and injured parties who win punitive damages cases would receive less compensation, as a portion goes to the state rather than the claimant, potentially reducing incentives for holding defendants accountable
  • Deterrent effect: By reducing the financial impact of punitive damages awards on defendants, the surcharge could diminish the deterrent effect these damages are designed to provide against egregious corporate or individual misconduct
  • Revenue vs. justice debate: Whether using civil litigation outcomes as a revenue source appropriately balances compensatory justice goals with state fiscal needs

Compiled from official sources — confirm details with the bill’s official record.

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