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. The definition of "fault" is expanded to include various forms of negligence and strict liability, while "malice" is defined as either a direct intention to injure or a reckless disregard for the rights of others. Additionally, the bill clarifies the circumstances under which exemplary damages can be awarded, specifically requiring clear and convincing evidence of oppression, fraud, or malice, and detailing the process for amending pleadings to include such claims.

Furthermore, the bill establishes guidelines for the assessment of exemplary damages, including a cap on the amount awarded, which cannot exceed twice the compensatory damages or $250,000, whichever is greater. It also specifies that evidence of a defendant's financial condition is inadmissible in determining exemplary damages and outlines the conditions under which exemplary damages may be awarded against manufacturers or sellers of products. Notably, the bill removes references to "actual" malice and certain conditions related to motor vehicle accidents, streamlining the criteria for awarding exemplary damages in these cases.

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