The bill amends sections 32-03.2-01 and 32-03.2-11 of the North Dakota Century Code, specifically addressing the definitions and conditions under which exemplary damages may be awarded in civil actions. The definition of "fault" is expanded to include various forms of negligence and strict liability, while "malice" is defined to encompass both direct intentions to harm and reckless disregard for others' rights. Additionally, the bill clarifies the circumstances under which exemplary damages can be awarded, emphasizing that they may only be granted in cases of oppression, fraud, or malice, and outlines the procedural requirements for claiming such damages.

Key changes include the removal of the term "actual" from the definition of malice, and the introduction of specific criteria for determining the appropriateness of exemplary damages, including the relationship between the damages claimed and the harm caused. The bill also establishes limits on the amount of exemplary damages that can be awarded, stipulating that they cannot exceed twice the compensatory damages or $250,000, whichever is greater. Furthermore, it specifies that exemplary damages cannot be awarded against manufacturers or sellers if they complied with federal safety regulations, unless certain conditions are met. Overall, the bill aims to clarify and refine the legal framework surrounding exemplary damages in North Dakota.

Statutes affected:
INTRODUCED: 32-03.2-01, 32-03.2-11
Enrollment: 32-03.2-01, 32-03.2-11