REPORT TITLE:
Civil Justice Reform


DESCRIPTION:
Repeals certain exceptions to the abolition of joint and several
liability.  Limits recovery for all noneconomic damages in tort
actions to $500,000.  Codifies court rule relating to offers of
judgment.  Allows evidence of collateral source payments to be
admitted at trial.  Limits punitive damages awards.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           500
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO CIVIL JUSTICE REFORM.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that there is a need to
 
 2 provide meaningful reform of the tort and civil justice system in
 
 3 Hawaii.  Specifically, this Act does each of the following:
 
 4      (1)  Part I of this Act repeals all of the exceptions to the
 
 5           abolition of joint and several liability except for the
 
 6           recovery of economic and noneconomic damages against
 
 7           tortfeasors in actions involving serious bodily injury
 
 8           or death, and defines "serious bodily injury";
 
 9      (2)  Part II limits recovery for all noneconomic damages in
 
10           tort actions to $500,000;
 
11      (3)  Part III allows courts to award attorneys' fees and
 
12           court costs in civil actions based on a percentage of a
 
13           party's claims or defenses determined to be frivolous.
 
14           Part III also codifies rule 68 of the Hawaii rules of
 
15           civil procedure relating to offers of judgment, and
 
16           adds reasonable attorneys' fees;
 
17      (4)  Part IV allows evidence of collateral source payments
 
18           to be admitted at trial.  In addition, part IV reduces
 
19           tort damage awards by all collateral sources available
 

 
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 1           to claimants, and establishes the right of a provider
 
 2           of collateral sources to reimbursement from the
 
 3           collateral sources claimant if the claimant has
 
 4           recovered from the tortfeasor; and
 
 5      (5)  Part V limits punitive damages awards to three times
 
 6           the amount of compensatory damages.  Part V also
 
 7           requires a judge, rather than a jury, to determine the
 
 8           dollar amount of any award of punitive damages, and
 
 9           further requires one-third of all punitive damages
 
10           awards to be deposited in the state general fund.
 
11               PART I.  JOINT AND SEVERAL LIABILITY
 
12      SECTION 2.  The legislature finds that while the abolition
 
13 of joint and several liability, which was enacted in 1986, was an
 
14 important step towards implementing tort reform in Hawaii, the
 
15 numerous exceptions to that section render that law almost
 
16 meaningless.  Accordingly, the purpose of this Part is to provide
 
17 that the only exception to the abolition of joint and several
 
18 liability is for the recovery of economic and noneconomic damages
 
19 against joint tortfeasors in actions involving serious bodily
 
20 injury or death.  "Serious bodily injury" is defined as any
 
21 physical injury that results in paraplegia or quadriplegia, or
 
22 that the fact finder determines to be as damaging or severe to an
 
23 individual to the same extent as if the individual was rendered a
 

 
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 1 paraplegic or quadriplegic.
 
 2      SECTION 3.  Section 663-10.9, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§663-10.9[]]  Abolition of joint and several liability;
 
 5 [exceptions.] exception.  (a)  Joint and several liability for
 
 6 joint tortfeasors as defined in section 663-11 is abolished
 
 7 except [in the following circumstances:
 
 8      (1)  For] for the recovery of economic and noneconomic
 
 9           damages against joint tortfeasors in actions involving
 
10           asbestos-related torts and for the recovery of economic
 
11           and noneconomic damages against joint tortfeasors in
 
12           actions involving serious bodily injury or death to
 
13           persons[.]; provided that
 
14      [(2) For the recovery of economic and noneconomic damages
 
15           against joint tortfeasors in actions involving:
 
16           (A)  Intentional torts;
 
17           (B)  Torts relating to environmental pollution;
 
18           (C)  Toxic and asbestos-related torts;
 
19           (D)  Torts relating to aircraft accidents;
 
20           (E)  Strict and products liability torts; or
 
21           (F)  Torts relating to motor vehicle accidents except
 
22                as provided in paragraph (4).
 
23      (3)  For] the recovery of noneconomic damages [in actions,
 

 
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 1           other than those enumerated in paragraph (2), involving
 
 2           injury or death to persons] shall be limited to actions
 
 3           against those tortfeasors whose individual degree of
 
 4           negligence is found to be twenty-five per cent or more
 
 5           under section 663-31.  Where a tortfeasor's degree of
 
 6           negligence is less than twenty-five per cent, then the
 
 7           amount recoverable against that tortfeasor for
 
 8           noneconomic damages shall be in direct proportion to
 
 9           the degree of negligence assigned.
 
10      [(4) For recovery of noneconomic damages in motor vehicle
 
11           accidents involving tort actions relating to the
 
12           maintenance and design of highways including actions
 
13           involving guardrails, utility poles, street and
 
14           directional signs, and any other highway-related device
 
15           upon a showing that the affected joint tortfeasor was
 
16           given reasonable prior notice of a prior occurrence
 
17           under similar circumstances to the occurrence upon
 
18           which the tort claim is based.  In actions in which the
 
19           affected joint tortfeasor has not been shown to have
 
20           had such reasonable prior notice, the recovery of
 
21           noneconomic damages shall be as provided in paragraph
 
22           (3).]
 
23      (b)  As used in this section, "serious bodily injury" means
 

 
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 1 any physical injury or impairment of physical condition that:
 
 2      (1)  Results in paraplegia or quadriplegia; or
 
 3      (2)  The finder of fact determines to be as damaging or
 
 4           severe to an individual to the same extent as if the
 
 5           individual was rendered a paraplegic or quadriplegic."
 
 6      SECTION 4.  This Part shall apply only to causes of action
 
 7 based upon acts or omissions occurring on or after its effective
 
 8 date.
 
 9                   PART II.  NONECONOMIC DAMAGES
 
10      SECTION 5.  The purpose of this Part is to limit recovery
 
11 for all noneconomic damages in tort actions to $500,000.
 
12 Noneconomic damages generally include such claims as pain and
 
13 suffering, mental anguish, disfigurement, loss of enjoyment of
 
14 life, loss of consortium, and other nonpecuniary losses.  Under
 
15 current law, the maximum limit on damages recoverable for only
 
16 one type of noneconomic damage -- pain and suffering -- is
 
17 $375,000.  However, there is no upper limit on maximum damages
 
18 with respect to other types of noneconomic damages.  The
 
19 legislature finds that placing a realistic cap on all noneconomic
 
20 damages in tort actions, rather than only for pain and suffering,
 
21 will help to lower the costs of liability insurance for Hawaii's
 
22 consumers.
 
23      SECTION 6.  Section 663-8.7, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "[[]§663-8.7[]]  Limitation on [pain and suffering.]
 
 3 noneconomic damages.  (a)  Damages recoverable for [pain and
 
 4 suffering] all noneconomic damages as defined in section 663-8.5
 
 5 shall be limited to a maximum award of [$375,000; provided that
 
 6 this limitation shall not apply to tort actions enumerated in
 
 7 section 663-10.9(2).] $500,000 with respect to any tort action."
 
 8      SECTION 7.  This Part shall apply only to causes of action
 
 9 based upon acts or omissions occurring on or after its effective
 
10 date.
 
11                     PART III.  COSTS AND FEES
 
12      SECTION 8.  The legislature finds that, under current law,
 
13 when a frivolous claim or defense is made by a party in a civil
 
14 action, in order for a court to make an award of attorneys' fees
 
15 in that action, the court must first find in writing that "all"
 
16 of the claims or defenses made by a party are frivolous and are
 
17 not reasonably supported by the facts and the law in the civil
 
18 action.  The legislature finds, however, that it is often the
 
19 case that only a portion, but not all, of the claims or defenses
 
20 made by a party may be found to be frivolous.  In these cases,
 
21 however, the court would be prohibited from awarding attorneys'
 
22 fees to the other party since not "all" of the claims or defenses
 
23 were found to be frivolous.
 

 
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 1      In order to remedy this unjust result, the purpose of this
 
 2 Part is to allow the court to award attorneys' fees where the
 
 3 court finds that less than all of the claims or defenses are
 
 4 determined to be frivolous.  If the court finds that only a
 
 5 portion of the claims or defenses are frivolous, it must
 
 6 determine the amount of the award of attorneys' fees and costs
 
 7 based on the percentage of the claims or defenses deemed to be
 
 8 frivolous.  The amount of the award is to be allocated in direct
 
 9 proportion to the percentage of frivolous claims or defenses.  In
 
10 addition, this Part further allows the court to award court costs
 
11 as well as attorneys' fees if a party makes frivolous claims or
 
12 defenses in civil actions.
 
13      The legislature further finds that there is a need to codify
 
14 rule 68 of the Hawaii rules of civil procedure relating to offers
 
15 of judgment.  That rule permits the recovery of costs by either
 
16 party contingent on that party's having made an offer of
 
17 settlement that was not accepted and that was at least as
 
18 favorable to the offeree as the final judgment in the case.  In
 
19 addition to codifying rule 68, this Part also requires the
 
20 payment of reasonable attorneys' fees as well as court costs in
 
21 order to encourage pre-trial settlements.
 
22      SECTION 9.  Chapter 607, Hawaii Revised Statutes, is amended
 
23 by adding a new section to be appropriately designated and to
 

 
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 1 read as follows:
 
 2      "§607-    Offer of judgment.  At any time more than ten days
 
 3 before the trial begins, a party defending against a claim may
 
 4 serve upon the adverse party an offer to allow judgment to be
 
 5 taken against the offeror for the money or property or to the
 
 6 effect specified in that offer, with costs then accrued.  If
 
 7 within ten days after the service of the offer the adverse party
 
 8 serves written notice that the offer is accepted, either party
 
 9 may then file the offer and notice of acceptance together with
 
10 proof of service and thereupon the clerk shall enter judgment.
 
11 An offer not accepted shall be deemed withdrawn and evidence
 
12 thereof is not admissible except in a proceeding to determine
 
13 costs.
 
14      If the judgment finally obtained by the offeree is not more
 
15 favorable than the offer, the offeree must pay the costs incurred
 
16 after the making of the offer.  The fact that an offer is made
 
17 but not accepted does not preclude a subsequent offer.
 
18      When the liability of one party to another has been
 
19 determined by verdict or order or judgment, but the amount or
 
20 extent of the liability remains to be determined by further
 
21 proceedings, the party adjudged liable may make an offer of
 
22 judgment, which shall have the same effect as an offer made
 
23 before trial if it is served within a reasonable time not less
 

 
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 1 than ten days prior to the commencement of hearings to determine
 
 2 the amount or extent of liability.
 
 3      As used in this section, "costs" includes both court costs
 
 4 and reasonable attorneys' fees."
 
 5      SECTION 10.  Section 607-14.5, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§607-14.5  Attorneys' fees and costs in civil actions.(a)
 
 8 In any civil action in this State where a party seeks money
 
 9 damages or injunctive relief, or both, against another party, and
 
10 the case is subsequently decided, the court [may], as it deems
 
11 just, may assess against either party, and enter as part of its
 
12 order, for which execution may issue, a reasonable sum for
 
13 attorneys' fees[,] and costs, in an amount to be determined by
 
14 the court upon a specific finding that all or a portion of the
 
15 party's claim or defense was frivolous[.] as provided in
 
16 subsection (b).
 
17      (b)  In determining the award of attorneys' fees and costs
 
18 and the amounts to be awarded, the court must find in writing
 
19 that all or a portion of the claims or defenses made by the party
 
20 are frivolous and are not reasonably supported by the facts and
 
21 the law in the civil action.  If the court determines that only a
 
22 portion of the claims or defenses made by the party are
 
23 frivolous, the court shall determine the amount of the award of
 

 
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 1 attorneys' fees and costs based on the percentage of the claims
 
 2 or defenses deemed to be frivolous.  The amount of the award
 
 3 shall be allocated in direct proportion to the percentage of
 
 4 frivolous claims or defenses."
 
 5      SECTION 11.  This Part shall apply only to civil actions
 
 6 filed on or after its effective date.
 
 7                   PART IV.  COLLATERAL SOURCES
 
 8      SECTION 12.  The purpose of this Part is to allow evidence
 
 9 of collateral source payments to be admitted at trial.  In
 
10 addition, this Part reduces tort damage awards by all collateral
 
11 sources available to claimants, and establishes the right of a
 
12 provider of collateral sources to reimbursement from the
 
13 collateral sources claimant if the claimant recovered from the
 
14 tortfeasor.
 
15      SECTION 13.  Chapter 621, Hawaii Revised Statutes, is
 
16 amended by adding a new section to be appropriately designated
 
17 and to read as follows:
 
18      "§621-     Admissibility of collateral sources.  In any
 
19 action for tort, including a medical tort as defined in section
 
20 671-1, evidence shall be admissible for consideration by the
 
21 court to establish that any such past or future cost or expense
 
22 was or, with reasonable certainty, will be replaced or
 
23 indemnified, in whole or in part, from any collateral source, as
 

 
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 1 defined in chapter 663."
 
 2      SECTION 14.  Chapter 663, Hawaii Revised Statutes, is
 
 3 amended by adding a new section to be appropriately designated
 
 4 and to read as follows:
 
 5      "§663-     Reduction of award; collateral indemnity.  (a)
 
 6 In any action to which this section applies in which liability is
 
 7 admitted or is determined by the trier of fact and in which
 
 8 damages are awarded to compensate the claimant for losses
 
 9 sustained, the court shall reduce the amount of the award by the
 
10 total of all amounts which have been paid for the benefit of the
 
11 claimant, or that are otherwise available to the claimant, from
 
12 all collateral sources; provided that there shall be no reduction
 
13 for collateral sources for which a subrogation or reimbursement
 
14 right exists.
 
15      (b)  For the purposes of this section:
 
16      "Collateral sources" means any payments made to the
 
17 claimant, or made on the claimant's behalf, by or pursuant to:
 
18      (1)  The United States Social Security Act, except Title
 
19           XVIII and Title XIX; any federal, state, or local
 
20           income disability act; or any other public programs
 
21           providing medical expenses, disability payments, or
 
22           other similar benefits, except those prohibited by
 
23           federal law and those expressly excluded by law as
 

 
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 1           collateral sources;
 
 2      (2)  Any health, sickness, income disability insurance, or
 
 3           motor vehicle accident insurance required by state law
 
 4           that provides health benefits, wage continuation, or
 
 5           income disability coverage; and any other similar
 
 6           insurance benefits required by state law, whether
 
 7           purchased by the claimant or provided by others; or
 
 8      (3)  Any contract or agreement of any group, organization,
 
 9           partnership, or corporation to provide, pay for, or
 
10           reimburse the costs of hospital, medical, dental, or
 
11           other health care services.
 
12      Notwithstanding any other provision of this section,
 
13 benefits that the party awarded damages, the person injured or
 
14 that person's estate is obligated to repay; life insurance or
 
15 other death benefits; insurance benefits for which the person
 
16 injured or deceased or members of that person's family paid
 
17 premiums; retirement and pension plan benefits; benefits received
 
18 under Medicare, or any other federal program providing for a
 
19 federal government lien on or right of reimbursement from the
 
20 plaintiff's recovery, the workers' compensation law, the Medicaid
 
21 program of Title XIX of the Social Security Act or from any
 
22 medical services program administered by the department of health
 
23 or department of human services shall not be considered a
 

 
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 1 collateral source.
 
 2      (c)  If the fee for legal services provided to the claimant
 
 3 is based on a percentage of the amount of money awarded to the
 
 4 claimant, the percentage shall be based on the net amount of the
 
 5 award as reduced by the amounts of collateral sources.
 
 6      (d)  A provider of collateral sources that has a right of
 
 7 subrogation or reimbursement that has complied with this section
 
 8 shall have a right of reimbursement from a claimant to whom it
 
 9 has provided collateral sources if the claimant has recovered all
 
10 or part of the collateral sources from a tortfeasor.  The
 
11 provider's right of reimbursement shall be limited to the actual
 
12 amount of collateral sources recovered by the claimant from a
 
13 tortfeasor, minus its pro rata share of costs and attorney's fees
 
14 incurred by the claimant in recovering the collateral sources
 
15 from the tortfeasor.  In determining the provider's pro rata
 
16 share of those costs and attorney's fees, the provider shall have
 
17 deducted from its recovery a percentage amount equal to the
 
18 percentage of the judgment or settlement that is for costs and
 
19 attorney's fees.
 
20      (e)  Any disputes between the claimant and the provider as
 
21 to the actual amount of collateral sources recovered by the
 
22 claimant from a tortfeasor shall be subject to determination by a
 
23 court of competent jurisdiction.  In determining the actual
 

 
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 1 amount of collateral sources recovered, the court shall give
 
 2 consideration to any offset in the amount of settlement or
 
 3 judgment for any comparative negligence of the claimant,
 
 4 limitations in the amount of liability insurance coverage
 
 5 available to the tortfeasor, or any other mitigating factors
 
 6 which the court deems equitable and appropriate under the
 
 7 circumstances.
 
 8      (f)  A claimant shall send the provider of any collateral
 
 9 sources, by certified or registered mail, notification of the
 
10 claimant's intent to claim damages from the tortfeasor.  If the
 
11 claimant has filed suit against the tortfeasor at the time the
 
12 notice is sent, a copy of the complaint against the tortfeasor
 
13 shall be sent along with the notice.  The notice shall include a
 
14 statement that the provider of collateral sources will waive any
 
15 right to subrogation or reimbursement unless it provides the
 
16 claimant or claimant's attorney a statement asserting payment of
 
17 benefits and right of subrogation or reimbursement within thirty
 
18 days following receipt of the claimant's notification to the
 
19 collateral source provider.
 
20      (g)  Within thirty days after receipt of the claimant's
 
21 notification of intent to claim damages from the tortfeasor, the
 
22 provider of collateral sources must provide the claimant or
 
23 claimant's attorney a statement asserting its payment of
 

 
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                                     S.B. NO.           500
                                                        
                                                        


 1 collateral sources benefits and right of subrogation or
 
 2 reimbursement.  Failure of the provider of collateral sources to
 
 3 provide the statement to the claimant or claimant's attorney
 
 4 within the thirty-day period shall result in waiver of any claim
 
 5 to subrogation or reimbursement by the provider with respect to
 
 6 any collateral sources.  No right of subrogation or reimbursement
 
 7 shall exist for a provider of collateral sources that has waived
 
 8 its right of subrogation or reimbursement pursuant to this
 
 9 subsection.
 
10      (h)  Reimbursement of a collateral source provider pursuant
 
11 to this section shall satisfy the collateral source provider's
 
12 right of subrogation or reimbursement.  The provider shall have
 
13 no right of subrogation or reimbursement for collateral sources
 
14 payments made after the date of waiver, settlement, or judgment.
 
15      (i)  A collateral source provider claiming a right of
 
16 subrogation or reimbursement under this section shall cooperate
 
17 with the claimant by producing any information that is reasonably
 
18 necessary for the claimant to prove the nature and extent of the
 
19 value of the collateral sources provided.  The failure of the
 
20 collateral source provider to cooperate may be taken into account
 
21 by the court in determining the right to or the amount of the
 
22 reimbursement asserted."
 
23      SECTION 15.  Section 663-10, Hawaii Revised Statutes, is
 

 
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 1 repealed.
 
 2      ["[§663-10]  Collateral sources; protection for liens and
 
 3 rights of subrogation.  In any civil action in tort, the court,
 
 4 before any judgment or stipulation to dismiss the action is
 
 5 approved, shall determine the validity of any claim of a lien
 
 6 against the amount of the judgment or settlement by any person
 
 7 who files timely notice of the claim to the court or to the
 
 8 parties in the action.  The judgment entered, or the order
 
 9 subsequent to settlement, shall include a statement of the
 
10 amounts, if any, due and owing to any person determined by the
 
11 court to be a holder of a valid lien and to be paid to the
 
12 lienholder out of the amount of the corresponding special damages
 
13 recovered by the judgment or settlement.  In determining the
 
14 payment due the lienholder, the court shall deduct from the
 
15 payment a reasonable sum for the costs and fees incurred by the
 
16 party who brought the civil action in tort.  As used in this
 
17 section, lien means a lien arising out of a claim for payments
 
18 made or indemnified from collateral sources for costs and
 
19 expenses arising out of the injury which is the subject of the
 
20 civil action in tort."]
 
21      SECTION 16.  This Part shall apply only to causes of action
 
22 based upon acts or omissions occurring on or after its effective
 
23 date.
 

 
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 1                     PART V.  PUNITIVE DAMAGES
 
 2      SECTION 17.  The legislature finds that there is an
 
 3 immediate need to reform Hawaii's laws providing for the award of
 
 4 punitive damages.  Punitive damages, also known as exemplary
 
 5 damages, are intended to punish the defendant and deter both the
 
 6 defendant and others from engaging in similar acts of wrongdoing
 
 7 in the future.  Punitive damages are distinguishable from
 
 8 compensatory damages, which are the primary form of damages
 
 9 awarded under tort law and are designed to "make the plaintiff
 
10 whole".  Compensatory damages compensate tort victims for damages
 
11 including payment for out-of-pocket expenses, such as lost wages
 
12 and medical costs, and awards for pain and suffering.  In
 
13 contrast, punitive damages were developed as an auxiliary to
 
14 criminal law to impose a public sanction on conduct that might
 
15 not be pursued by criminal law enforcement.
 
16      The legislature finds that in recent years, the number of
 
17 punitive damages claims asserted have increased dramatically.
 
18 While large punitive damages awards can be reduced on appeal as
 
19 being excessive, the effect of the assertion of these claims is
 
20 to raise the cost of litigation, undermine confidence in the
 
21 civil justice system, handicap Hawaii's businesses in competition
 
22 with foreign enterprises, and generally increase the costs of
 
23 doing business in the State.
 

 
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 1      The purpose of this Part is to reform the law relating to
 
 2 punitive damages by:
 
 3      (1)  Limiting punitive damages awards to three times the
 
 4           amount of compensatory damages;
 
 5      (2)  Requiring a judge to determine the dollar amount of any
 
 6           award of punitive damages, rather than the jury, to
 
 7           ensure that the amount of these awards is determined in
 
 8           a fair and constitutional manner and will be less
 
 9           likely to be overturned or reduced on appeal.  The
 
10           determination as to whether punitive damages should be
 
11           awarded will continue to be made by juries or judges in
 
12           jury-waived trials; and
 
13      (3)  Requiring that one-third of all punitive damages awards
 
14           be deposited into the state general fund, and requiring
 
15           the administrative director of the courts to provide
 
16           for the collection of these awards and to submit an
 
17           annual report to the chief justice of the Hawaii
 
18           supreme court and the legislature regarding amounts
 
19           paid into the general fund during the previous fiscal
 
20           year.
 
21      SECTION 18.  Chapter 663, Hawaii Revised Statutes, is
 
22 amended by adding a new section to be appropriately designated
 
23 and to read as follows:
 

 
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                                     S.B. NO.           500
                                                        
                                                        


 1      "§663-    Punitive damages.  (a)  Except as otherwise
 
 2 provided by law, no award of punitive damages may be made in any
 
 3 court of competent jurisdiction in this State except as provided
 
 4 in this section.
 
 5      (b)  The dollar amount of any punitive damages awarded in
 
 6 any case shall be determined only by the judge in the judge's
 
 7 discretion, and not the jury.
 
 8      (c)  Punitive damages imposed against a defendant in any
 
 9 case shall not exceed three times the amount of compensatory
 
10 damages.
 
11      (d)  Notwithstanding any other law to the contrary,
 
12 including but not limited to any statutory or common law, 33.3
 
13 per cent of all punitive damages awarded in any case, pursuant to
 
14 the final judgment of any court of competent jurisdiction in this
 
15 State, and upon the exhaustion of all appeals in that action,
 
16 shall be deemed to be the property of the State and shall be
 
17 collected pursuant to section 601-3(a)(9) and deposited with the
 
18 state director of finance to the credit of the state general
 
19 fund."
 
20      SECTION 19.  Section 601-3, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§601-3 Administrative director.  (a)  The chief justice,
 
23 with the approval of the supreme court, shall appoint an
 

 
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 1 administrative director of the courts to assist the chief justice
 
 2 in directing the administration of the judiciary.  The
 
 3 administrative director shall be a resident of the State for a
 
 4 continuous period of three years prior to the administrative
 
 5 director's appointment, and shall be appointed without regard to
 
 6 chapters 76 and 77 and shall serve at the pleasure of the chief
 
 7 justice.  The administrative director shall hold no other office
 
 8 or employment.  [Effective January 1, 1989, the administrative
 
 9 director shall receive a salary of $81,629 a year.]  Effective
 
10 January 1, 1990, the administrative director shall receive a
 
11 salary of $85,302 a year.  The administrative director shall,
 
12 subject to the direction of the chief justice, perform the
 
13 following functions:
 
14      (1)  Examine the administrative methods of the courts and
 
15           make recommendations to the chief justice for their
 
16           improvement;
 
17      (2)  Examine the state of the dockets of the courts, secure
 
18           information as to their needs of assistance, if any,
 
19           prepare statistical data and reports of the business of
 
20           the courts and advise the chief justice to the end that
 
21           proper action may be taken;
 
22      (3)  Examine the estimates of the courts for appropriations
 
23           and present to the chief justice the administrative
 

 
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 1           director's recommendations concerning them;
 
 2      (4)  Examine the statistical systems of the courts and make
 
 3           recommendations to the chief justice for a uniform
 
 4           system of judicial statistics;
 
 5      (5)  Collect, analyze, and report to the chief justice
 
 6           statistical and other data concerning the business of
 
 7           the courts;
 
 8      (6)  Assist the chief justice in the preparation of the
 
 9           budget, the six-year program and financial plan, the
 
10           variance report and any other reports requested by the
 
11           legislature;
 
12      (7)  Carry out all duties and responsibilities that are
 
13           specified in Title 7 as it pertains to employees of the
 
14           judiciary; [and]
 
15      (8)  Attend to such other matters as may be assigned by the
 
16           chief justice[.]; and
 
17      (9)  Provide for the collection of punitive damages awards
 
18           as provided in section 663-    for deposit into the
 
19           state general fund, and submit an annual report to the
 
20           chief justice and the legislature on amounts paid into
 
21           that fund pursuant to section 663-    during the
 
22           previous fiscal year.
 
23      (b)  The administrative director shall, with the approval of
 

 
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                                     S.B. NO.           500
                                                        
                                                        


 1 the chief justice, appoint a deputy administrative director of
 
 2 the courts without regard to chapters 76 and 77 and such
 
 3 assistants as may be necessary.  Such assistants shall be
 
 4 appointed without regard to chapters 76 and 77.  [Effective
 
 5 January 1, 1989, the salary of the deputy administrative director
 
 6 shall be $74,608 a year.]  Effective January 1, 1990, the salary
 
 7 of the deputy administrative director shall be $77,966 a year.
 
 8 The administrative director shall be provided with necessary
 
 9 office facilities.
 
10      (c)  The judges, clerks, officers, and employees of the
 
11 courts shall comply with all requests of the administrative
 
12 director for information and statistical data relating to the
 
13 business of the courts and expenditure of public funds for their
 
14 maintenance and operation."
 
15      SECTION 20.  The chief justice of the supreme court and the
 
16 administrative director of the courts shall adopt rules relating
 
17 to the collection of punitive damages as required by this Part
 
18 for deposit into the state general fund for the efficient
 
19 implementation of this Part.
 
20                      PART VI.  MISCELLANEOUS
 
21      SECTION 21.  This Act does not affect rights and duties that
 
22 matured, penalties that were incurred, and proceedings that were
 
23 begun, before its effective date.
 

 
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                                     S.B. NO.           500
                                                        
                                                        


 1      SECTION 22.  If any provision of this Act, or the
 
 2 application thereof to any person or circumstance is held
 
 3 invalid, the invalidity does not affect other provisions or
 
 4 applications of the Act which can be given effect without the
 
 5 invalid provision or application, and to this end the provisions
 
 6 of this Act are severable.
 
 7      SECTION 23.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 24.  This Act shall take effect upon its approval.
 
10 
 
11                           INTRODUCED BY:  _______________________