MD SB871

Punitive damages in negligence cases may only be awarded if the plaintiff proves by clear and convincing evidence that the defendant acted with "gross negligence," defined as disregard for others' safety characterized by willful misconduct, repeated misconduct, malicious intent, or failure to exercise even slight care.

Defendants ordered to pay punitive damages must pay an additional 50% surcharge to the State, assessed by the State Court Administrator at the conclusion of all proceedings.

Surcharge revenue is deposited into the Blueprint for Maryland's Future Fund for education funding.

Juries may not be informed of the surcharge, and the surcharge cannot reduce the punitive damages amount paid to the plaintiff.

The Act explicitly abrogates the punitive damages standard from Owens-Illinois, Inc. v. Zenobia (1992), applies only prospectively to cases filed after October 1, 2026.