Product Liability. Immunity from Punitive Damages. Initiative Statute.

Prohibits courts from assessing damages to punish defendants (punitive damages) when a product causes injury or harm if, at time of manufacture, distribution or sale, the product or the product’s warning information was in material compliance with existing laws, regulations or governmental standards. Immunity from punitive damage awards would be required unless injured party could prove, with clear and convincing evidence, that manufacturer, distributor or seller intentionally withheld or misrepresented information required by a governmental agency, and that such action was causally related to consumer injury. Measure applies to pending lawsuits. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potential unknown reduction in revenues to the state and local governments resulting from a potential decrease in punitive damage awards in certain product liability lawsuits. (SA2005RF0147.