Executive Summary

Legislation introduced by Rep. James Rogan (R-Calif.) intended to limit the amount of litigation and product liability damages against small businesses marked up by House Judiciary Committee Oct. 19. The bill, HR 2366, would allow punitive damages only if proof exists showing the business engaged in "willful misconduct or with a conscious, flagrant indifference to the rights or safety of others," and would limit damages to $250,000 or three times compensatory damages, whichever is less. Small businesses are defined as those with 25 or fewer employees; the bill could affect some dietary supplement firms