Civil Actions - Punitive Damage Awards - Surcharge

SB 871 changes how punitive damages are awarded in Maryland civil cases. It requires plaintiffs to prove "gross negligence" (e.g., willful misconduct or repeated harm) 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-focused fund), separate from the amount paid to the plaintiff. Juries cannot be informed about this surcharge, and the law applies only to cases filed after October 1, 2026.