It is patently unfair for a business to be held liable for punitive damages despite that business having strictly followed all applicable health and safety standards. HB 2503 addresses this concern by protecting law abiding businesses from punitive damage claims in product liability cases.
When businesses decide where to expand and invest, there are a number of factors that go into that decision, including a state's legal environment. States are more competitive in the battle for jobs when they have an environment that allows job creators to concentrate on innovation and expansion, not on looking over their shoulder in anticipation of the next legal action. We’d rather business spend their dollars on hiring new employees, not on hiring an army of lawyers.
HB 2503 helps facilitate economic growth by exempting manufacturers and sellers from punitive damages when their product was designed and manufactured according to the license or approval terms of a government agency. By deferring to agency decisions, HB 2503 establishes consistent safety standards and strongly incentivizes compliance from Arizona businesses. The bill only affects punitive damages, not compensatory damages. The bill simply tells manufacturers that if they play by the rules, then they shouldn't be punished.
This year presents a unique opportunity to continue to bolster Arizona's reputation as a leader in civil justice reform.
For questions regarding the Arizona Prosperity Project, please contact Grant Hanna - Government Relations, Arizona Chamber of Commerce & Industry
3200 N. Central Ave. Ste. 1125 Phoenix, AZ 85012 | grant@azprosperity.org | p.(602)248-9172 x. 119 | f.(602) 239-2820
