In a lawsuit, a jury may award “punitive damages” to a successful plaintiff. Punitive damages are payable by the defendant in addition to compensatory damages like medical expenses, lost wages, future loss of earning power, etc. Punitive damages are awarded in cases of outrageous conduct to punish the defendant and deter others from engaging in similar conduct.

In State X, there are no specific limits on the amounts that may be awarded as punitive damages. Businesses have lobbied extensively for “tort reform” that would include a statute limiting the amount of punitive damages. The legislature in State X is considering a bill to place caps on punitive damages awards.

Please discuss the proposed legislation. Include in your response answers to these questions: “What public policies would be furthered by this law? How? What public policies might conflict with it? How? Should legislation like this be enacted?”