§ 6604. Punitive damages limitations

Statutory text

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.

Caps on punitive damages

In general

Subject to the evidentiary standard established by subsection (a), punitive damages permitted under applicable law against a defendant described in paragraph (2) in a Y2K action may not exceed the lesser of—

three times the amount awarded for compensatory damages; or

$250,000.

Defendant described

A defendant described in this paragraph is a defendant—

who—

is sued in his or her capacity as an individual; and

whose net worth does not exceed $500,000; or

that is an unincorporated business, a partnership, corporation, association, or organization, with fewer than 50 full-time employees.

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.

Government entities

Punitive damages in a Y2K action may not be awarded against a government entity.

Institutions of higher education

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.

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—

has passed Y2K data exchange testing with the Department of Education; or

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.

Footnotes

1 So in original. Probably should be “institution”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1999
Y2K Act
Pub. L. 106–37 § 5 · 113 Stat. 185
Enacted · 15 U.S.C. § 6604
Pub. L. 106–37, § 5, July 20, 1999, 113 Stat. 192
Source evidence
Code source credit
Pub. L. 106–37, § 5, July 20, 1999, 113 Stat. 192
Enacted provision · exact public law section
SEC. 5. 15 USC 6604. PUNITIVE DAMAGES LIMIATIONS. (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), 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.
1999
District of Columbia Appropriations Act, 2000
Pub. L. 106–113 div. B § 1000(a)(4)(tIII)(s311) · 113 Stat. 1501
Added · 15 U.S.C. § 6604(d)
Pub. L. 106–113 added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 106–113 added subsec. (d).

1 of 2 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments

1999—Subsec. (d). Pub. L. 106–113 added subsec. (d).

Credits

1999 · 2 acts

1999Pub. L. 106–37, § 5, July 20, 1999, 113 Stat. 192
1999Pub. L. 106–113, div. B, § 1000(a)(4) [title III, § 311], Nov. 29, 1999, 113 Stat. 1535, 1501A–265.

Show as published

(Pub. L. 106–37, § 5, July 20, 1999, 113 Stat. 192; Pub. L. 106–113, div. B, § 1000(a)(4) [title III, § 311], Nov. 29, 1999, 113 Stat. 1535, 1501A–265.)