2005 Nevada Revised Statutes - Chapter 42 — Damages

CHAPTER 42 - DAMAGES

NRS 42.001 Definitions;exceptions.

NRS 42.005 Exemplaryand punitive damages: In general; limitations on amount of award; determinationin subsequent proceeding.

NRS 42.007 Exemplaryand punitive damages: Limitation on liability by employer for wrongful act ofhis employee; exception.

NRS 42.010 Exemplaryand punitive damages: Injury caused by operation of vehicle after consumptionof alcohol or controlled substance.

NRS 42.021 Actionsbased on professional negligence of providers of health care: Introduction ofcertain evidence relating to collateral benefits; restrictions on source ofcollateral benefits; payment of future damages by periodic payments. [This sectionwas proposed by an initiative petition and approved by the voters at the 2004General Election and therefore is not subject to legislative amendment orrepeal until after November 23, 2007.]

NRS 42.030 Courtapproval of agreement to transfer structured settlement required.

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NRS 42.001 Definitions;exceptions. As used in this chapter, unlessthe context otherwise requires and except as otherwise provided in subsection 5of NRS 42.005:

1. Conscious disregard means the knowledge of theprobable harmful consequences of a wrongful act and a willful and deliberatefailure to act to avoid those consequences.

2. Fraud means an intentional misrepresentation,deception or concealment of a material fact known to the person with the intentto deprive another person of his rights or property or to otherwise injureanother person.

3. Malice, express or implied means conduct which isintended to injure a person or despicable conduct which is engaged in with aconscious disregard of the rights or safety of others.

4. Oppression means despicable conduct that subjectsa person to cruel and unjust hardship with conscious disregard of the rights ofthe person.

(Added to NRS by 1995, 2668)

NRS 42.005 Exemplaryand punitive damages: In general; limitations on amount of award; determinationin subsequent proceeding.

1. Except as otherwise provided in NRS 42.007, in an action for the breach ofan obligation not arising from contract, where it is proven by clear andconvincing evidence that the defendant has been guilty of oppression, fraud ormalice, express or implied, the plaintiff, in addition to the compensatorydamages, may recover damages for the sake of example and by way of punishingthe defendant. Except as otherwise provided in this section or by specificstatute, an award of exemplary or punitive damages made pursuant to thissection may not exceed:

(a) Three times the amount of compensatory damagesawarded to the plaintiff if the amount of compensatory damages is $100,000 ormore; or

(b) Three hundred thousand dollars if the amount ofcompensatory damages awarded to the plaintiff is less than $100,000.

2. The limitations on the amount of an award ofexemplary or punitive damages prescribed in subsection 1 do not apply to anaction brought against:

(a) A manufacturer, distributor or seller of adefective product;

(b) An insurer who acts in bad faith regarding itsobligations to provide insurance coverage;

(c) A person for violating a state or federal lawprohibiting discriminatory housing practices, if the law provides for a remedyof exemplary or punitive damages in excess of the limitations prescribed insubsection 1;

(d) A person for damages or an injury caused by theemission, disposal or spilling of a toxic, radioactive or hazardous material orwaste; or

(e) A person for defamation.

3. If punitive damages are claimed pursuant to thissection, the trier of fact shall make a finding of whether such damages will beassessed. If such damages are to be assessed, a subsequent proceeding must beconducted before the same trier of fact to determine the amount of such damagesto be assessed. The trier of fact shall make a finding of the amount to beassessed according to the provisions of this section. The findings required bythis section, if made by a jury, must be made by special verdict along with anyother required findings. The jury must not be instructed, or otherwise advised,of the limitations on the amount of an award of punitive damages prescribed insubsection 1.

4. Evidence of the financial condition of thedefendant is not admissible for the purpose of determining the amount ofpunitive damages to be assessed until the commencement of the subsequentproceeding to determine the amount of exemplary or punitive damages to beassessed.

5. For the purposes of an action brought against aninsurer who acts in bad faith regarding its obligations to provide insurancecoverage, the definitions set forth in NRS42.001 are not applicable and the corresponding provisions of the commonlaw apply.

(Added to NRS by 1989, 486; A 1995, 2669)

NRS 42.007 Exemplaryand punitive damages: Limitation on liability by employer for wrongful act ofhis employee; exception.

1. Except as otherwise provided in subsection 2, in anaction for the breach of an obligation in which exemplary or punitive damagesare sought pursuant to subsection 1 of NRS42.005 from an employer for the wrongful act of his employee, the employeris not liable for the exemplary or punitive damages unless:

(a) The employer had advance knowledge that theemployee was unfit for the purposes of the employment and employed him with aconscious disregard of the rights or safety of others;

(b) The employer expressly authorized or ratified thewrongful act of the employee for which the damages are awarded; or

(c) The employer is personally guilty of oppression,fraud or malice, express or implied.

If theemployer is a corporation, the employer is not liable for exemplary or punitivedamages unless the elements of paragraph (a), (b) or (c) are met by an officer,director or managing agent of the corporation who was expressly authorized todirect or ratify the employees conduct on behalf of the corporation.

2. The limitations on liability set forth insubsection 1 do not apply to an action brought against an insurer who acts inbad faith regarding its obligations to provide insurance coverage.

(Added to NRS by 1995, 2668)

NRS 42.010 Exemplaryand punitive damages: Injury caused by operation of vehicle after consumption ofalcohol or controlled substance.

1. In an action for the breach of an obligation, wherethe defendant caused an injury by the operation of a motor vehicle in violationof NRS 484.379, 484.3795 or 484.37955 after willfully consuming orusing alcohol or another substance, knowing that he would thereafter operatethe motor vehicle, the plaintiff, in addition to the compensatory damages, mayrecover damages for the sake of example and by way of punishing the defendant.

2. The provisions of NRS42.005 do not apply to any cause of action brought pursuant to thissection.

(Added to NRS by 1965, 1143; A 1967, 738; 1981, 1928;1989, 487; 2005, 161)

NRS 42.021 Actionsbased on professional negligence of providers of health care: Introduction ofcertain evidence relating to collateral benefits; restrictions on source ofcollateral benefits; payment of future damages by periodic payments. [Thissection was proposed by an initiative petition and approved by the voters atthe 2004 General Election and therefore is not subject to legislative amendmentor repeal until after November 23, 2007.]

1. In an action for injury or death against a providerof health care based upon professional negligence, if the defendant so elects,the defendant may introduce evidence of any amount payable as a benefit to theplaintiff as a result of the injury or death pursuant to the United StatesSocial Security Act, any state or federal income disability or workerscompensation act, any health, sickness or income-disability insurance, accidentinsurance that provides health benefits or income-disability coverage, and anycontract or agreement of any group, organization, partnership or corporation toprovide, pay for or reimburse the cost of medical, hospital, dental or otherhealth care services. If the defendant elects to introduce such evidence, theplaintiff may introduce evidence of any amount that the plaintiff has paid orcontributed to secure his right to any insurance benefits concerning which thedefendant has introduced evidence.

2. A source of collateral benefits introduced pursuantto subsection 1 may not:

(a) Recover any amount against the plaintiff; or

(b) Be subrogated to the rights of the plaintiffagainst a defendant.

3. In an action for injury or death against a providerof health care based upon professional negligence, a district court shall, atthe request of either party, enter a judgment ordering that money damages orits equivalent for future damages of the judgment creditor be paid in whole orin part by periodic payments rather than by a lump-sum payment if the awardequals or exceeds $50,000 in future damages.

4. In entering a judgment ordering the payment offuture damages by periodic payments pursuant to subsection 3, the court shallmake a specific finding as to the dollar amount of periodic payments that willcompensate the judgment creditor for such future damages. As a condition toauthorizing periodic payments of future damages, the court shall require ajudgment debtor who is not adequately insured to post security adequate toassure full payment of such damages awarded by the judgment. Upon terminationof periodic payments of future damages, the court shall order the return ofthis security, or so much as remains, to the judgment debtor.

5. A judgment ordering the payment of future damagesby periodic payments entered pursuant to subsection 3 must specify therecipient or recipients of the payments, the dollar amount of the payments, theinterval between payments, and the number of payments or the period of timeover which payments will be made. Such payments must only be subject tomodification in the event of the death of the judgment creditor. Money damagesawarded for loss of future earnings must not be reduced or payments terminatedby reason of the death of the judgment creditor, but must be paid to persons towhom the judgment creditor owed a duty of support, as provided by law,immediately before his death. In such cases, the court that rendered theoriginal judgment may, upon petition of any party in interest, modify the judgmentto award and apportion the unpaid future damages in accordance with this subsection.

6. If the court finds that the judgment debtor hasexhibited a continuing pattern of failing to make the periodic payments asspecified pursuant to subsection 5, the court shall find the judgment debtor incontempt of court and, in addition to the required periodic payments, shallorder the judgment debtor to pay the judgment creditor all damages caused bythe failure to make such periodic payments, including, but not limited to,court costs and attorneys fees.

7. Following the occurrence or expiration of allobligations specified in the periodic payment judgment, any obligation of thejudgment debtor to make further payments ceases and any security given pursuantto subsection 4 reverts to the judgment debtor.

8. As used in this section:

(a) Future damages includes damages for futuremedical treatment, care or custody, loss of future earnings, loss of bodilyfunction, or future pain and suffering of the judgment creditor.

(b) Periodic payments means the payment of money ordelivery of other property to the judgment creditor at regular intervals.

(c) Professional negligence means a negligent act oromission to act by a provider of health care in the rendering of professionalservices, which act or omission is the proximate cause of a personal injury orwrongful death. The term does not include services that are outside the scopeof services for which the provider of health care is licensed or services forwhich any restriction has been imposed by the applicable regulatory board orhealth care facility.

(d) Provider of health care means a physicianlicensed under chapter 630 or 633 of NRS, dentist, licensed nurse, dispensingoptician, optometrist, registered physical therapist, podiatric physician,licensed psychologist, chiropractor, doctor of Oriental medicine, medicallaboratory director or technician, or a licensed hospital and its employees.

(Added to NRS by 2004 initiative petition, BallotQuestion No. 3)

NRS 42.030 Courtapproval of agreement to transfer structured settlement required.

1. An agreement to transfer the right to receivepayments pursuant to a structured settlement to a transferee is valid andenforceable only if the transfer is approved by a district court. Thetransferee must petition the district court for such approval and the courtshall approve the transfer if it determines that:

(a) The transfer is in the best interest of the payee,considering the totality of the circumstances, including, without limitation,the welfare and support of the dependents of the payee;

(b) The payee has been advised in writing by thetransferee to seek independent professional advice regarding the transfer andhas received such independent professional advice or has knowingly waived suchadvice in writing; and

(c) The transfer does not violate any applicable law orthe order of any court.

2. An action pursuant to subsection 1 must becommenced in the district court:

(a) Located where the original claim which gave rise tothe structured settlement was filed; or

(b) Within the county in which the payee resides.

3. Not later than 7 days before a hearing on apetition pursuant to subsection 1, the transferee must file with the districtcourt and serve on all interested parties and any attorney who represented thepayee in the action which resulted in the settled claim a notice of theproposed agreement and the petition for authorization of the proposedagreement. The notice must include, without limitation:

(a) A copy of the petition of the transferee;

(b) A copy of the proposed agreement;

(c) A copy of the disclosure required pursuant tosubsection 4;

(d) A list which includes the name and age of eachdependent of the payee;

(e) A statement that any interested party may support,oppose or otherwise respond to the petition of the transferee by appearing inperson or by counsel during the hearing on the petition or by submittingwritten comments to the court; and

(f) Notice of the time and place of the hearing, themanner in which a written response to the application must be filed and thedate by which a written response to the petition must be filed forconsideration by the court.

4. A transferee who commences an action pursuant tosubsection 1 must provide to the court with the proposed agreement a disclosuresetting forth:

(a) The amounts and due dates of the payments under thestructured settlement proposed to be transferred;

(b) The aggregate amount of the proposed payments to betransferred;

(c) The amount to be paid to the payee for the transferbefore deducting any expenses;

(d) An itemized list of all expenses that the payeewill be required to pay other than attorneys fees and which will be deductedfrom the amount paid to the payee for the transfer, including, withoutlimitation, any commission owed to a broker, service charges, application orprocessing fees, costs of closing on the agreement, filing or administrativecharges and fees paid to a notary public;

(e) The amount to be paid to the payee for the transferafter deducting the expenses;

(f) The amount of any liquidated damages which thepayee is required to pay if he breaches the transfer agreement;

(g) The discounted present value of the payments underthe structured settlement that are proposed to be transferred and the discountrate used to determine that value; and

(h) If adverse tax consequences exist, a statementwhich informs the payee that such a transfer may subject him to adverse taxconsequences with regard to the payment of federal income tax.

5. Compliance with the requirements set forth in thissection may not be waived.

6. As used in this section:

(a) Annuity issuer means an insurer who has issued acontract to fund periodic payments under a structured settlement;

(b) Dependents include, without limitation, thespouse of a payee, any minor child of a payee and any other person for whom thepayee is legally obligated to provide support, including, without limitation,alimony;

(c) Independent professional advice means advice ofan attorney, certified public accountant, actuary or other licensedprofessional adviser;

(d) Interested parties means the payee, anybeneficiary irrevocably designated under the annuity contract to receivepayments following the death of the payee, the annuity issuer, any person whois obligated to make payments pursuant to the structured settlement and anyother party who has continuing rights or obligations under the structuredsettlement;

(e) Payee means a person who is receiving tax-freepayments under a structured settlement and proposes to make a transfer of theright to receive payments under that structured settlement;

(f) Periodic payments includes, without limitation,both recurring payments and scheduled future lump-sum payments;

(g) Settled claim means the original tort claim orworkers compensation claim resolved by a structured settlement;

(h) Structured settlement means an arrangement forperiodic payment of damages for personal injuries or sickness established bysettlement or judgment in resolution of a tort claim or for periodic paymentsin settlement of a workers compensation claim;

(i) Transfer means any sale, assignment, pledge,hypothecation or other alienation or encumbrance by a payee for considerationof the right to receive payments pursuant to a structured settlement; and

(j) Transferee means a party acquiring or proposingto acquire the right to payments pursuant to a structured settlement through atransfer.

(Added to NRS by 2003, 1665)

 

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