§ 6604. — Punitive damages limitations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC6604]
TITLE 15--COMMERCE AND TRADE
CHAPTER 92--YEAR 2000 COMPUTER DATE CHANGE
Sec. 6604. Punitive damages limitations
(a) In general
In any Y2K action in which punitive damages are permitted by
applicable law, the defendant shall not be liable for punitive damages
unless the plaintiff proves by clear and convincing evidence that the
applicable standard for awarding damages has been met.
(b) Caps on punitive damages
(1) In general
Subject to the evidentiary standard established by subsection
(a) of this section, punitive damages permitted under applicable law
against a defendant described in paragraph (2) in a Y2K action may
not exceed the lesser of--
(A) three times the amount awarded for compensatory damages;
or
(B) $250,000.
(2) Defendant described
A defendant described in this paragraph is a defendant--
(A) who--
(i) is sued in his or her capacity as an individual; and
(ii) whose net worth does not exceed $500,000; or
(B) that is an unincorporated business, a partnership,
corporation, association, or organization, with fewer than 50
full-time employees.
(3) No cap if injury specifically intended
Paragraph (1) does not apply if the plaintiff establishes by
clear and convincing evidence that the defendant acted with specific
intent to injure the plaintiff.
(c) Government entities
Punitive damages in a Y2K action may not be awarded against a
government entity.
(d) Institutions of higher education
(1) In general
Subject to paragraph (2), punitive damages in a Y2K action may
not be awarded against an instituion \1\ of higher education as
defined in section 1001(a) of title 20.
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\1\ So in original. Probably should be ``institution''.
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(2) Exception
Paragraph (1) shall not apply to an institution of higher
education if the Y2K failure in the Y2K action occurred in a
computer-based student financial aid system of that institution of
higher education, and the institution--
(A) has passed Y2K data exchange testing with the Department
of Education; or
(B) is not or was not in the process of performing data
exchange testing with the Department of Education at the time
the Department terminates such testing.
(Pub. L. 106-37, Sec. 5, July 20, 1999, 113 Stat. 192; Pub. L. 106-113,
div. B, Sec. 1000(a)(4) [title III, Sec. 311], Nov. 29, 1999, 113 Stat.
1535, 1501A-265.)
Amendments
1999--Subsec. (d). Pub. L. 106-113 added subsec. (d).
Section Referred to in Other Sections
This section is referred to in section 6617 of this title.
