15 USC 6605 - Proportionate liability

U.S Code last checked for updates: Nov 22, 2024

§ 6605.

Proportionate liability

(a)

In general

(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

(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), 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) 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

(3)

Right to contribution not affected

(d)

Special rules

(1)

Uncollectible share

(A)

In general

Notwithstanding subsection (a), 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

(iii)

Additional liability

(B)

Overall limit

(C)

Subject to contribution

(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

(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

(2)

Statute of limitations for contribution

(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.

(Pub. L. 106–37, § 6, July 20, 1999, 113 Stat. 192.)

cite as: 15 USC 6605