15 USC 6604 - Punitive damages limitations

U.S Code last checked for updates: Apr 29, 2024

§ 6604.

Punitive damages limitations

(a)

In general

(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

(c)

Government entities

(d)

Institutions of higher education

(1)

In general

(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, § 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.)

cite as: 15 USC 6604