North DakotaSB 22902025 Regular SessionSenateWALLET

AN ACT to amend and reenact sections 32-03.2-01 and 32-03.2-11 of the North Dakota Century Code, relating to when a court or jury may give exemplary damages.

Sponsored By: Michael Dwyer (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Cap on punitive damage awards

Punitive damages cannot exceed the greater of two times compensatory damages or $250,000. No punitive damages are allowed if there are no compensatory damages. The jury is not told about this limit. The court must cut any higher verdict down to the cap.

Easier punitive claims after recent DUI

In car crash injury cases, the court can consider punitive damages if clear and convincing evidence shows the at‑fault driver had a DUI conviction within the past five years and was driving under one of these: blood alcohol at least 0.08; under the influence of a controlled substance not used as prescribed; under the influence of alcohol and refused a required test; or under the influence of a listed volatile chemical. The prior DUI conviction is admissible at trial.

Stricter path to punitive damages

Punitive damages are only allowed in non‑contract cases for oppression, fraud, or actual malice, proven by clear and convincing evidence. You cannot ask for punitive damages in the first complaint. After filing, you must move to amend and attach affidavits or depositions; the court allows it only if a preponderance shows oppression, fraud, or malice. Either side can have the court decide compensatory damages first, and punitive‑only evidence is kept out until then. The jury must size any punitive award using factors like harm, how bad and long the conduct was, concealment, profit, and any criminal penalties. The law bars evidence of the defendant’s net worth. It defines fault broadly and defines malice as intent to injure or reckless disregard of others’ rights. Amended punitive claims relate back to the original filing date.

Shield for compliant product makers

Manufacturers and sellers are not liable for punitive damages if the product met federal laws or rules, or had federal premarket approval, when made. This shield does not apply if the plaintiff proves the company knowingly hid or lied about required information to the federal agency, or made an illegal payment to get approval. These exceptions must be proven by clear and convincing evidence.

When employers owe punitive damages

A principal (like an employer) faces punitive damages for an agent’s act only if one of these is proven by clear and convincing evidence: the principal or a manager authorized the act; the agent was unfit and the principal was reckless in hiring or keeping the agent; the agent was a manager acting in the job; or the principal or a manager later approved the act.

Sponsors & Cosponsors

Sponsor

  • Michael Dwyer

    Republican • Senate

Cosponsors

  • Pat D. Heinert

    Republican • House

  • Lawrence R. Klemin

    Republican • House

  • Mary Schneider

    Democratic • House

  • Sean Cleary

    Republican • Senate

  • Jonathan Sickler

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 133 • No: 5

House vote 3/18/2025

Second reading, passed, yeas 88 nays 5

Yes: 88 • No: 5

Senate vote 2/5/2025

Second reading, passed, yeas 45 nays 0

Yes: 45 • No: 0

Actions Timeline

  1. Filed with Secretary Of State 03/26

    3/27/2025House
  2. Signed by Governor 03/25

    3/26/2025Senate
  3. Sent to Governor

    3/24/2025Senate
  4. Signed by President

    3/24/2025Senate
  5. Signed by Speaker

    3/24/2025House
  6. Returned to Senate

    3/19/2025Senate
  7. Second reading, passed, yeas 88 nays 5

    3/18/2025House
  8. Reported back, do pass, place on calendar 12 1 1

    3/17/2025House
  9. Committee Hearing 09:00

    3/17/2025House
  10. Introduced, first reading, referred Judiciary Committee

    2/18/2025House
  11. Received from Senate

    2/6/2025House
  12. Second reading, passed, yeas 45 nays 0

    2/5/2025Senate
  13. Reported back, do pass, place on calendar 7 0 0

    2/4/2025Senate
  14. Committee Hearing 10:30

    2/4/2025Senate
  15. Introduced, first reading, referred Judiciary Committee

    1/20/2025Senate

Bill Text

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