Does Georgia take part of a punitive damages award in product cases?

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Yes. In product-liability cases, Georgia law directs that the large majority of any punitive-damages award goes to the state rather than to the injured plaintiff. Under O.C.G.A. § 51-12-5.1, 75% of a punitive award in a product case is paid into the state treasury, leaving the plaintiff with 25%. This “split-recovery” arrangement is unique to product claims.

How the split works

After a jury sets a punitive figure in a product-liability case, the statute reduces what reaches the plaintiff. The state’s 75% share is calculated after subtracting a proportional part of the costs of litigation, including reasonable attorney’s fees, as determined by the trial judge. So the deduction is taken from the gross punitive award, the litigation costs attributable to that portion are accounted for, and the remainder is divided with three-quarters going to the state through the Office of the State Treasurer.

The state’s interest in the award carries real legal weight. Once judgment is entered, the state holds the rights of a judgment creditor for its share until that share is satisfied.

What makes product cases different

Product-liability claims are treated differently from ordinary tort cases in several ways under the same statute:

  • There is no $250,000 cap on the punitive amount.
  • Only one punitive award may be recovered from a defendant for the conduct at issue, no matter how many causes of action are pleaded.
  • The 75/25 split sends most of the award to the state.

The reasoning behind the split is that punitive damages punish a defendant and protect the public, so the public, through the state, shares in the recovery. The compensatory portion of the verdict is unaffected; only the punitive component is divided. A plaintiff’s award for medical bills, lost income, and pain and suffering stays with the plaintiff in full.

The bottom line

In Georgia product-liability cases, the state does claim part of a punitive award, and a large part: 75% after a proportional share of litigation costs, with 25% remaining for the plaintiff. This split applies only to the punitive portion and only in product cases, while compensatory damages are not touched.

This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.

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