Summary:

 Senate Bill 132 (SB 132) limits the amount of punitive damages that can be awarded in a legal action.   

Legislation Overview:

 Senate Bill 132 (SB 132) enacts a new section of law that limits the amount of punitive damages in a legal action. 
First, the bill provides that in a lawsuit in which compensatory damages are awarded to the winning party, the punitive damage award cannot exceed the compensatory damage award. 
Second, when punitive damages are awarded, the winning party may be awarded the costs for reasonable attorney fees.   

Current Law:

 Current law does not require that punitive damages be less than compensatory damages. However, the ratio between punitive and compensatory damages is one factor that courts look at in determining whether to reduce a punitive damages award.  Current law (Section 39-3-30 NMSA 1978) provides that in civil actions of any kind, the prevailing party recovers their costs against the other party, unless the court orders otherwise.