75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 878
House Bill 2271
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Attorney General Hardy
Myers for Department of Justice)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Provides that Department of Justice becomes party to civil
action upon return of verdict including award of punitive
damages. Specifies that department becomes party solely for
purpose of protecting interest of state in amount payable to
Criminal Injuries Compensation Account.
Provides that court may not reduce or vacate amount payable to
Criminal Injuries Compensation Account unless Department of
Justice stipulates in writing to reduction or vacation, or court
determines that reduction or vacation is required by state or
federal law.
A BILL FOR AN ACT
Relating to punitive damages; creating new provisions; and
amending ORS 31.735.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 31.735 is amended to read:
31.735. (1) { - Upon the entry of a verdict including an
award of punitive damages, the Department of Justice shall become
a judgment creditor as to the punitive damages portion of the
award to which the Criminal Injuries Compensation Account is
entitled pursuant to paragraph (b) of this subsection, and the
punitive damage portion of an award shall be allocated as
follows: - } { + Any punitive damages recovered in a civil
action shall be allocated as follows: + }
(a) Forty percent shall be paid to the prevailing party. The
attorney for the prevailing party shall be paid out of the amount
allocated under this paragraph, in the amount agreed upon between
the attorney and the prevailing party. However, in no event may
more than 20 percent of the amount awarded as punitive damages be
paid to the attorney for the prevailing party.
(b) Sixty percent shall be paid to the Criminal Injuries
Compensation Account of the Department of Justice Crime Victims'
Assistance Section to be used for the purposes set forth in ORS
chapter 147. However, if the prevailing party is a public entity,
the amount otherwise payable to the Criminal Injuries
Compensation Account shall be paid to the general fund of the
public entity.
{ - (2) The party preparing the proposed judgment shall
assure that the judgment identifies the judgment creditors
specified in subsection (1) of this section. - }
{ - (3) Upon the entry of a verdict including an award of
punitive damages, the prevailing party shall provide notice of
the verdict to the Department of Justice. In addition, upon entry
of a judgment based on a verdict that includes an award of
punitive damages, the prevailing party shall provide notice of
the judgment to the Department of Justice. The notices required
under this subsection must be in writing and must be delivered to
the Department of Justice Crime Victims' Assistance Section in
Salem, Oregon within five days after the entry of the verdict or
judgment. - }
{ + (2) Upon the return of a verdict including an award of
punitive damages, the Department of Justice becomes a party to
the action solely for the purpose of protecting the interest of
the state in the amount payable to the Criminal Injuries
Compensation Account under subsection (1)(b) of this section. The
clerk of the court shall add the Department of Justice to the
list of parties in the register of the court, with the address of
the department's Crime Victims' Assistance Section in Salem,
Oregon. The department must be served with any proposed form of
judgment in the action at least seven days before the judgment is
signed by the judge in the action.
(3) A court may not reduce or vacate the amount payable to the
Criminal Injuries Compensation Account under subsection (1)(b) of
this section unless:
(a) The Department of Justice stipulates in writing to the
reduction or vacation of the award; or
(b) The court determines that the reduction or vacation is
required by state or federal law. + }
(4) Whenever a judgment includes both compensatory and punitive
damages, any payment on the judgment by or on behalf of any
defendant, whether voluntary or by execution or otherwise, shall
be applied first to compensatory damages, costs and court-awarded
attorney fees awarded against that defendant and then to punitive
damages awarded against that defendant unless all affected
parties, including the Department of Justice, expressly agree
otherwise, or unless that application is contrary to the express
terms of the judgment.
(5) Whenever any judgment creditor of a judgment which includes
punitive damages governed by this section receives any payment on
the judgment by or on behalf of any defendant, the judgment
creditor receiving the payment shall notify the attorney for the
other judgment creditors and all sums collected shall be applied
as required by subsections (1) and (4) of this section, unless
all affected parties, including the Department of Justice,
expressly agree otherwise, or unless that application is contrary
to the express terms of the judgment.
SECTION 2. { + The amendments to ORS 31.735 by section 1 of
this 2009 Act apply only to civil actions in which judgments are
entered on or after the effective date of this 2009 Act. If a
verdict containing an award of punitive damages is returned
before the effective date of this 2009 Act, but a judgment has
not been entered in the action on the effective date of this 2009
Act, a judgment may not be entered in the action until the
requirements of ORS 31.735, as amended by section 1 of this 2009
Act, have been met. + }
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