SB 62
Modifies provisions relating to civil actions to recover damages for unlawful merchandising practices
LR Number:
Last Action:
5/17/2019 - Informal Calendar S Bills for Perfection--SB 62-Burlison, with SCS
Journal Page:
Calendar Position:
Effective Date:
August 28, 2019

Current Bill Summary

SCS/SB 62 - This act modifies provisions regarding civil actions for certain unlawful merchandising practices.

An unlawful merchandising practice shall not include any advertisement, merchandise, or transaction in which the merchandise consists of a new residence in a transaction in which the buyer is offered an express warranty in the sale contract by the builder or by a third party warranty paid for by the builder and the sale contract includes a disclaimer. A "residence" is defined as a single-family house, duplex, triplex, quadraplex, or unit in a multiunit residential structure in which the title to each individual unit is transferred to an owner under a condominium or cooperative system and includes common areas and common elements.

Currently, the court may award punitive damages as well as attorney's fees and equitable relief in actions for unlawful merchandising practices. This act repeals the availability of punitive damages and provides that the plaintiffs in a class action for unlawful merchandising practices may only seek to recover compensatory damages. Additionally, in a class action, a court may enjoin the practices declared to be unlawful and may determine an award of reasonable attorney's fees for counsel for the class. Such fees shall bear a reasonable relationship to the amount of the judgment. After the commencement of the class action, an order permitting the class action shall specify how the class claims and any issues affecting only individual members will be tried in a manageable, time efficient manner.

Prior to entry of a judgment against a defendant, the court shall require each member of the class to submit a statement requesting a specific dollar amount and information regarding the nature of the member's loss or damages. The statement shall indicate how the loss or damages were caused by the defendant's unlawful act. No award of damages shall be made without objective proof that the members suffered actual damage by the unlawful act. No judgment shall be entered until the amount of money owed to each member based on individual proof is determined. The amount of the judgment shall not exceed the sum of money owed to each class member.

The provisions of this act shall only apply to causes of action that accrue on or after August 28, 2019.



No Amendments Found.