Damage Caps

Damage caps are laws, usually passed by state legislatures, that set a maximum dollar amount a jury can award in certain categories of a civil lawsuit, no matter how large the jury's original verdict. They most often apply to non-economic damages (pain and suffering, loss of companionship) and punitive damages, but some states also cap medical malpractice or wrongful death awards. If a jury awards more than the cap, the judge reduces the verdict to the legal maximum.

Origin

Damage caps spread across the United States during the "tort reform" movement of the 1970s through 1990s, when industry and insurance groups lobbied state legislatures to limit civil jury awards. California's 1975 MICRA statute, which capped non-economic damages in medical malpractice at $250,000, became an influential model.

Significance in Asbestos Context

For someone with mesothelioma, lung cancer, or asbestosis, damage caps can directly reduce what the family ultimately receives, sometimes by millions of dollars, even after a jury hears the full story of suffering and corporate wrongdoing. The rules vary enormously by state: some states have no caps for asbestos cases, some cap only punitive damages, and a few cap non-economic damages tightly. Because asbestos cases can often be filed in more than one state (where you lived, where you were exposed, where the defendant is headquartered, where you were diagnosed), the choice of jurisdiction can dramatically change the value of a claim. Your legal team will analyze which courts are available to you and how each state's caps would apply.

Example Sentence

After the jury returned a $12 million verdict, the judge was required to reduce the non-economic portion to comply with the state's damage caps, lowering the final award by several million dollars.

Related Terms

Compensatory Damages, Non-Economic Damages, Punitive Damages, Tort Reform, Wrongful Death, Forum Selection

Notes

• Ask your attorney early whether damage caps apply in the state(s) where your case could be filed, and whether filing in a different jurisdiction is possible and advantageous.
• Caps usually apply only to certain categories of damages. Economic losses like medical bills and lost wages are often not capped, so document every expense, treatment, and missed paycheck.
• Some states exempt intentional misconduct or fraud from punitive damage caps; evidence that a manufacturer hid the dangers of asbestos may matter to whether a cap applies.
• Bankruptcy trust claims are governed by trust distribution procedures, not state damage caps. These are a separate recovery path your lawyer should evaluate alongside any lawsuit.