The bill amends sections 32-03.2-01 and 32-03.2-11 of the North Dakota Century Code, focusing on the definitions and conditions under which exemplary damages may be awarded in civil actions. It redefines "fault" to include various forms of negligence and liability, and introduces a new definition for "malice," which encompasses both direct intent to harm and reckless disregard for others' rights. Additionally, the bill modifies the criteria for awarding exemplary damages, allowing courts or juries to do so in cases of oppression, fraud, or malice, while also establishing specific procedures for amending pleadings to include claims for exemplary damages.

Furthermore, the bill sets 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. It also outlines the factors that must be considered when determining the appropriateness of exemplary damages, such as the relationship between the damages and the harm caused, the defendant's conduct, and any relevant criminal sanctions. Notably, the bill includes provisions that protect manufacturers and sellers from exemplary damages if they comply with federal safety regulations, unless certain conditions are met.

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