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Attack On Maryland's Noneconomic Damages Cap Fails In High Court

Green v. N.B.S., Inc., No. 95 (Md. July 2009)

The Maryland Court of Appeals recently held that Maryland's statutory cap on noneconomic damages applies to claims brought under the state's Consumer Protection Act. The Court rejected arguments that the cap only applies to personal injury claims based on traditional common law torts, such as negligence.


The case arose from injuries Kelly Green suffered as a child because of lead paint exposure in a Northeast Baltimore house that her family rented from N.B.S., Inc. The case was tried in Baltimore City Circuit Court under the theory that Green's family was deceived into renting a house with lead paint, in violation of Maryland's Consumer Protection Act. Agreeing, Judge John Philip Miller directed a verdict for Green, but allowed the amount of damages to be decided by a jury. After a $2.3 million verdict was announced, Judge Miller reduced the award to $515,000 pursuant to Maryland's statutory cap. The Court of Special Appeals upheld the reduction, prompting Green to seek review by the Court of Appeals.

Md. Code, Cts. & Jud. Proc. § 11-108 limits the amount of noneconomic personal injury damages that victims of "tortious conduct" may receive. On appeal, Green's attorney argued that, because the case involved a statutory cause of action, Green's personal injuries were not the result of tortious conduct. Judge Joseph F. Murphy, Jr., writing for a unanimous Court of Appeals, instead noted that "the fact that a cause of action arises out of a statute does not mean that a tort has not been committed." He further explained that, "the term ‘tort' as defined by Black's [Law Dictionary] encompasses all ‘civil wrongs,' not just wrongs that were recognized as a civil wrong at common law." The Court affirmed the decision of the Circuit Court, and upheld the reduction of damages.

The Court's holding is consistent with previous Maryland cases in which the term "tortious act or omission" was interpreted to include causes of action to recover for constitutional torts. See Lee v. Cline, 384 Md. 245 (2004); In re Wallace W., 333 Md. 186 (1993). While not directly on point, such case law suggests that tortious conduct includes more than simply common law torts.

Green v. N.B.S., Inc. highlights an ongoing debate over the appropriateness of Maryland's noneconomic damages cap. Proponents of the cap often argue that it prevents runaway jury verdicts based more on emotion rather than the facts of a particular case, while opponents argue it is constitutionally unfair to reduce an award that a jury determines is appropriate.

In an effort to accommodate both sides, Maryland's Legislature has placed steadily increasing limits on the amount of damages plaintiffs may receive. Originally set at $350,000 in 1986, the cap was raised to $500,000 in 1994, where, under the current terms of the statute, it continues to increase by $15,000 each October 1. The current cap for causes of actions accruing between October 1, 2008 and September 30, 2009 is $710,000. 


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