In July, Governor Nikki Haley signed a law that limits punitive damages for lawsuits in South Carolina. The law, which was passed by both houses in June, was signed at a ceremony at the State House. The new law will cap punitive awards in typical cases at three times the actual damages or $500,000, whichever amount is greater.
For severe cases, the cap is limited to four times the amount of actual damages or $2 million, whichever is larger. Those cases must involve one of two situations:
- There must be unreasonable financial gain which involves unreasonably dangerous conduct by a corporation, or
- The actions of the defendant could subject that person to a felony conviction
This cap is lifted entirely, however, if the individual responsible for the injury was under the influence of drugs or alcohol, intended to cause harm or there is, in fact, a felony conviction. This new limit takes effect on January 1, 2012.
These caps are higher than other similar laws throughout the Southeast, but supporters of the law say they were necessary to make South Carolina more business friendly. Business leaders in the state pressed for lower caps, but they are supportive of the law as a whole. Critics, however, believe these laws only hurt the individual injured in the accident, by limiting the amount they can recover for injuries that can, in some cases, affect them for the rest of their lives.
Governor Haley pushed for a $350,000 cap or three times the actual damages, with no exemptions. The House passed this version of the bill in February, but it took months of discussions for both houses to agree on the larger amount and limited exemptions. According to a report by McClatchy Newspapers, this law ends years of debate on the subject and tilts the legal system in the state to a more business friendly environment.
This law marks the first punitive damages cap in the state of South Carolina. For those who are victims in personal injury cases, it basically limits the amount they can recover for pain and suffering.
It is important for those who have been injured in an accident to work with an attorney who can protect their rights and make sure they recover the amount they need to move forward. Despite the new law, it is still possible to recover compensation for damages and hold those responsible for the injuries accountable.
