Bill That Would Place a Cap on Punitive Damages Was Rejected by the Iowa Senate!

In a move lauded by many, the Senate voted against a bill that was aimed at placing a higher limit on the compensation that corporate entities and other defendants in civil litigations would be ordered to pay. Had it been put into effect, the law would cap punitive damages at $500,000 or three times the amount of compensation sought for damages, whichever would be greater.

Two Republican Senators along with 16 Democrats voted against the bill, making it one of the few legislative recommendations that could not be pushed through by the ruling party. The Association for Justice for the state of West Virginia certainly seemed in favor of the decision as its president, Anthony Majestro, stated that punitive damages are the only way to hold corporate entities liable for their wrong doings.
He added that by capping the amount, corporation would be given a free hand to continue with unscrupulous practices without the fear of law and monetary compensation to keep them in check. A corporate entity cannot be placed on criminal trial, so at least the punitive compensation should be significant enough to deter commercial establishments from misconduct.

According to Majestro, at the very least, the punitive damages sought should cover any profits that the corporation may have earned through the transgression along with an additional penalty thrown in for good measure, so that the management of commercial ventures would think twice before crossing the law.