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HB 906

Civil Actions - Punitive Damage Awards - Surcharge

2026 Regular Session Introduced by Ben Barnes and 1 co-sponsor

HB 906 imposes a surcharge on civil punitive damage awards in Maryland, diverting a portion from plaintiffs to state funds.

Hearing 2/18 at 1:00 p.m.
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Bill Summary · HB 906

Legislative bill overview

HB 906 would establish a surcharge on punitive damage awards in civil lawsuits in Maryland. The bill requires that a portion of punitive damages awarded by courts be directed to a designated fund or account, rather than going entirely to the plaintiff. This represents a modification to how punitive damages are currently distributed following civil litigation.

Why is this important

Punitive damages are meant to punish defendants for egregious conduct and deter future wrongdoing, beyond compensating injured plaintiffs. How these funds are allocated affects both litigation incentives and state revenue. The surcharge would redirect some funds from plaintiffs to the state, potentially impacting the financial motivation for bringing civil cases and affecting where public money comes from.

Potential points of contention

  • Plaintiff compensation vs. public interest: Plaintiffs and their attorneys may argue that surcharges reduce their recovery for bringing difficult cases to court, potentially discouraging litigation against bad actors
  • Defining the surcharge rate: Disagreement may arise over what percentage should be diverted and whether it should apply uniformly to all punitive damage awards regardless of size
  • Constitutional questions: There may be legal challenges regarding whether surcharges violate due process rights or alter the traditional purpose of punitive damages awards to the prevailing party

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

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