This 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, strict liability, and failure to exercise reasonable care, while a new definition for "malice" is introduced, encompassing both direct intent to injure and reckless disregard for others' rights. Additionally, the bill modifies the criteria for awarding exemplary damages, removing the requirement for "actual" malice and allowing for a broader interpretation of the circumstances under which such damages can be claimed.

The bill also outlines the procedural requirements for seeking exemplary damages, including the need for a motion to amend pleadings accompanied by supporting evidence. It establishes that exemplary damages may not exceed twice the amount of compensatory damages or $250,000, whichever is greater, and specifies that evidence of a defendant's financial condition is not admissible in determining exemplary damages. Furthermore, it introduces specific conditions under which exemplary damages may be awarded against manufacturers or sellers of products, as well as against principals for acts committed by their agents. The bill also clarifies the circumstances under which exemplary damages may be considered in cases involving motor vehicle accidents, particularly when the driver has a history of violations related to alcohol or controlled substances.

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