Civil Actions - Punitive Damage Awards - Surcharge

HB 1099 changes Maryland's rules for punitive damages in civil negligence cases. It requires plaintiffs to prove "gross negligence" (defined as reckless disregard for others' safety) by clear and convincing evidence before punitive damages can be awarded. The bill also imposes a 50% surcharge on all punitive damage awards, which must be paid by the defendant and deposited into the Blueprint for Maryland’s Future Fund (an education funding program). This surcharge is separate from the punitive damages amount and cannot be disclosed to juries. The bill applies only to cases filed after its effective date of October 1, 2025, and does not affect past cases.