46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO DAMAGES; PROVIDING FOR PAYMENT OF PUNITIVE DAMAGES TO THE GENERAL FUND; PROHIBITING THE STATE FROM ASSERTING A CLAIM FOR OR RECOVERING PUNITIVE DAMAGES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Punitive Damages Act".

Section 2. LEGISLATIVE FINDINGS--PURPOSE OF THE ACT.--The legislature finds that punitive damages are awarded in tort actions for the purpose of punishing wrongdoers and as a warning and deterrent to other wrongdoers. Such damages are not awarded as further compensation to injured parties that are fully compensated through awards of compensatory damages. Accordingly, the legislature finds that making punitive damages payable to injured parties is illogical and unfairly discriminatory. In those cases in which punitive damages are awarded, the injured party recovers more than fair compensation. There is no sound reason that some injured parties should recover more compensation than that to which they are otherwise entitled because wrongdoers are being punished. Accordingly, the purpose of the Punitive Damages Act is to provide a fairer and more equitable distribution of punitive damages awards.

Section 3. PUNITIVE DAMAGES AWARDS--DISPOSITION.--When a court enters judgment for punitive damages in a tort action, the court shall direct in the judgment that payment of the damages shall be made to the state general fund.

Section 4. PUNITIVE DAMAGES AWARDS--LIMITATION ON STATE RECOVERY.--The state shall not assert a claim for or recover punitive damages in a tort action to which the state is a party.

Section 5. APPLICABILITY.--The Punitive Damages Act does not apply to a case pending in a court on the effective date of the act.