Skip to main content
Find a Lawyer

15 U.S.C. § 6604 - U.S. Code - Unannotated Title 15. Commerce and Trade § 6604. Punitive damages limitations

Current as of January 01, 2024 | Updated by Findlaw Staff

(a)In general

In any Y2K action in which punitive damages are permitted by applicable law, the defendant shall not be liable for punitive damages unless the plaintiff proves by clear and convincing evidence that the applicable standard for awarding damages has been met.

(b)Caps on punitive damages

(1)In general

Subject to the evidentiary standard established by subsection (a), punitive damages permitted under applicable law against a defendant described in paragraph (2) in a Y2K action may not exceed the lesser of--

(A) three times the amount awarded for compensatory damages; or

(B) $250,000.

(2)Defendant described

A defendant described in this paragraph is a defendant--

(A) who--

(i) is sued in his or her capacity as an individual; and

(ii) whose net worth does not exceed $500,000; or

(B) that is an unincorporated business, a partnership, corporation, association, or organization, with fewer than 50 full-time employees.

(3)No cap if injury specifically intended

Paragraph (1) does not apply if the plaintiff establishes by clear and convincing evidence that the defendant acted with specific intent to injure the plaintiff.

(c)Government entities

Punitive damages in a Y2K action may not be awarded against a government entity.

(d)Institutions of higher education

(1)In general

Subject to paragraph (2), punitive damages in a Y2K action may not be awarded against an instituion  1 of higher education as defined in section 1001(a) of Title 20.

(2)Exception

Paragraph (1) shall not apply to an institution of higher education if the Y2K failure in the Y2K action occurred in a computer-based student financial aid system of that institution of higher education, and the institution--

(A) has passed Y2K data exchange testing with the Department of Education; or

(B) is not or was not in the process of performing data exchange testing with the Department of Education at the time the Department terminates such testing.

1 So in original. Probably should be “institution”.
Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - 15 U.S.C. § 6604 - U.S. Code - Unannotated Title 15. Commerce and Trade § 6604. Punitive damages limitations - last updated January 01, 2024 | https://codes.findlaw.com/us/title-15-commerce-and-trade/15-usc-sect-6604/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard