15 U.S.C. § 6605 : US Code - Section 6605: Proportionate liability

Search 15 U.S.C. § 6605 : US Code - Section 6605: Proportionate liability

(a) In general
Except in a Y2K action that is a contract action, and except as
provided in subsections (b) through (g) of this section, a person
against whom a final judgment is entered in a Y2K action shall be
liable solely for the portion of the judgment that corresponds to
the relative and proportionate responsibility of that person. In
determining the percentage of responsibility of any defendant, the
trier of fact shall determine that percentage as a percentage of
the total fault of all persons, including the plaintiff, who caused
or contributed to the total loss incurred by the plaintiff.
(b) Proportionate liability
(1) Determination of responsibility
In any Y2K action that is not a contract action, the court
shall instruct the jury to answer special interrogatories, or, if
there is no jury, the court shall make findings with respect to
each defendant, including defendants who have entered into
settlements with the plaintiff or plaintiffs, concerning -
(A) the percentage of responsibility, if any, of each
defendant, measured as a percentage of the total fault of all
persons who caused or contributed to the loss incurred by the
plaintiff; and
(B) if alleged by the plaintiff, whether the defendant (other
than a defendant who has entered into a settlement agreement
with the plaintiff) -
(i) acted with specific intent to injure the plaintiff; or
(ii) knowingly committed fraud.
(2) Contents of special interrogatories or findings
The responses to interrogatories or findings under paragraph
(1) shall specify the total amount of damages that the plaintiff
is entitled to recover and the percentage of responsibility of
each defendant found to have caused or contributed to the loss
incurred by the plaintiff.
(3) Factors for consideration
In determining the percentage of responsibility under this
subsection, the trier of fact shall consider -
(A) the nature of the conduct of each person found to have
caused or contributed to the loss incurred by the plaintiff;
and
(B) the nature and extent of the causal relationship between
the conduct of each such person and the damages incurred by the
plaintiff.
(c) Joint liability for specific intent or fraud
(1) In general
Notwithstanding subsection (a) of this section, the liability
of a defendant in a Y2K action that is not a contract action is
joint and several if the trier of fact specifically determines
that the defendant -
(A) acted with specific intent to injure the plaintiff; or
(B) knowingly committed fraud.
(2) Fraud; recklessness
(A) Knowing commission of fraud described
For purposes of subsection (b)(1)(B)(ii) of this section and
paragraph (1)(B) of this subsection, a defendant knowingly
committed fraud if the defendant -
(i) made an untrue statement of a material fact, with
actual knowledge that the statement was false;
(ii) omitted a fact necessary to make the statement not be
misleading, with actual knowledge that, as a result of the
omission, the statement was false; and
(iii) knew that the plaintiff was reasonably likely to rely
on the false statement.
(B) Recklessness
For purposes of subsection (b)(1)(B) of this section and
paragraph (1) of this subsection, reckless conduct by the
defendant does not constitute either a specific intent to
injure, or the knowing commission of fraud, by the defendant.
(3) Right to contribution not affected
Nothing in this section affects the right, under any other law,
of a defendant to contribution with respect to another defendant
found under subsection (b)(1)(B) of this section, or determined
under paragraph (1)(B) of this subsection, to have acted with
specific intent to injure the plaintiff or to have knowingly
committed fraud.
(d) Special rules
(1) Uncollectible share
(A) In general
Notwithstanding subsection (a) of this section, if, upon
motion made not later than 6 months after a final judgment is
entered in any Y2K action that is not a contract action, the
court determines that all or part of the share of the judgment
against a defendant for compensatory damages is not collectible
against that defendant, then each other defendant in the action
is liable for the uncollectible share as follows:
(i) Percentage of net worth
The other defendants are jointly and severally liable for
the uncollectible share if the plaintiff establishes that -
(I) the plaintiff is an individual whose recoverable
damages under the final judgment are equal to more than 10
percent of the net worth of the plaintiff; and
(II) the net worth of the plaintiff is less than
$200,000.
(ii) Other plaintiffs
For a plaintiff not described in clause (i), each of the
other defendants is liable for the uncollectible share in
proportion to the percentage of responsibility of that
defendant.
(iii) Additional liability
For a plaintiff not described in clause (i), in addition to
the share identified in clause (ii), the defendant is liable
for an additional portion of the uncollectible share in an
amount equal to 50 percent of the amount determined under
clause (ii) if the plaintiff demonstrates by a preponderance
of the evidence that the defendant acted with reckless
disregard for the likelihood that its acts would cause injury
of the sort suffered by the plaintiff.
(B) Overall limit
The total payments required under subparagraph (A) from all
defendants may not exceed the amount of the uncollectible
share.
(C) Subject to contribution
A defendant against whom judgment is not collectible is
subject to contribution and to any continuing liability to the
plaintiff on the judgment.
(D) Suits by consumers
(i) Notwithstanding subparagraph (A), the other defendants
are jointly and severally liable for the uncollectible share if
-
(I) the plaintiff is a consumer whose suit alleges or
arises out of a defect in a consumer product; and
(II) the plaintiff is suing as an individual and not as
part of a class action.
(ii) In this subparagraph:
(I) The term "class action" means -
(aa) a single lawsuit in which: (1) damages are sought on
behalf of more than 10 persons or prospective class
members; or (2) one or more named parties seek to recover
damages on a representative basis on behalf of themselves
and other unnamed parties similarly situated; or
(bb) any group of lawsuits filed in or pending in the
same court in which: (1) damages are sought on behalf of
more than 10 persons; and (2) the lawsuits are joined,
consolidated, or otherwise proceed as a single action for
any purpose.
(II) The term "consumer" means an individual who acquires a
consumer product for purposes other than resale.
(III) The term "consumer product" means any personal
property or service which is normally used for personal,
family, or household purposes.
(2) Special right of contribution
To the extent that a defendant is required to make an
additional payment under paragraph (1), that defendant may
recover contribution -
(A) from the defendant originally liable to make the payment;
(B) from any other defendant that is jointly and severally
liable;
(C) from any other defendant held proportionately liable who
is liable to make the same payment and has paid less than that
other defendant's proportionate share of that payment; or
(D) from any other person responsible for the conduct giving
rise to the payment that would have been liable to make the
same payment.
(3) Nondisclosure to jury
The standard for allocation of damages under subsection (a) of
this section and subsection (b)(1) of this section, and the
procedure for reallocation of uncollectible shares under
paragraph (1) of this subsection, shall not be disclosed to
members of the jury.
(e) Settlement discharge
(1) In general
A defendant who settles a Y2K action that is not a contract
action at any time before final verdict or judgment shall be
discharged from all claims for contribution brought by other
persons. Upon entry of the settlement by the court, the court
shall enter an order constituting the final discharge of all
obligations to the plaintiff of the settling defendant arising
out of the action. The order shall bar all future claims for
contribution arising out of the action -
(A) by any person against the settling defendant; and
(B) by the settling defendant against any person other than a
person whose liability has been extinguished by the settlement
of the settling defendant.
(2) Reduction
If a defendant enters into a settlement with the plaintiff
before the final verdict or judgment, the verdict or judgment
shall be reduced by the greater of -
(A) an amount that corresponds to the percentage of
responsibility of that defendant; or
(B) the amount paid to the plaintiff by that defendant.
(f) General right of contribution
(1) In general
A defendant who is jointly and severally liable for damages in
any Y2K action that is not a contract action may recover
contribution from any other person who, if joined in the original
action, would have been liable for the same damages. A claim for
contribution shall be determined based on the percentage of
responsibility of the claimant and of each person against whom a
claim for contribution is made.
(2) Statute of limitations for contribution
An action for contribution in connection with a Y2K action that
is not a contract action shall be brought not later than 6 months
after the entry of a final, nonappealable judgment in the Y2K
action, except that an action for contribution brought by a
defendant who was required to make an additional payment under
subsection (d)(1) of this section may be brought not later than 6
months after the date on which such payment was made.
(g) More protective State law not preempted
Nothing in this section preempts or supersedes any provision of
State law that -
(1) limits the liability of a defendant in a Y2K action to a
lesser amount than the amount determined under this section; or
(2) otherwise affords a greater degree of protection from joint
or several liability than is afforded by this section.