Most Americans Unaware that CAPS Drastically Limit the Recovery a Plaintiff can Receive from a Winning Lawsuit.

Most people are unaware that statutory caps apply to damages available in Federal Court. These caps drastically limit the recovery that a plaintiff can receive from a winning lawsuit. To put it simply even if a jury awards Millions of dollars to a plaintiff that was discriminated against in the workplace, in most cases that plaintiff's recovery will be reduced to AT MOST $300,000.

Why don't people know this? The media loves an exciting headline that sells the seemingly contradicting ideals that a) that David can beat Goliath - a single person we can speak truth to power and win against all odds and b) there is too much litigation, and people are just out to shake down corporations. Otherwise, headlines would look something like this:

Jane Doe wins 127-million-dollar lawsuit against Acme Executive for Racism and Sexual Harassment BUT Damages awarded will be reduced to the statutory limit of $300,000.

Not exactly effective click bait.    

But the truth, in this employment attorney's opinion, is that these laws violate the 7th Amendment right to a jury, support corporate malfeasance, and are outdated and counterproductive to a civil society that claims to be a meritocracy and undermine everyone's right to be free from discrimination in the workplace.

CAPS have been in effect since lobbyist and other corporate interests created the tort reform (deform) law in 1991. Originally, a tactic meant to de-fund the democratic party - which it was thought plaintiff's attorneys largely funded, the insurance companies jumped on board and helped entrench the lie that lawsuits hurt the public. The law(s) should be abolished. Even if you support some limits the CAPS should be adjusted on a regular basis as the amount of the CAPS has never been adjusted for inflation - making a trial by jury even less of a deterrent to those who would break our civil rights laws.

These CAPS ensure that workers who win employment discrimination cases cannot receive a jury’s full award for the harm they suffer. Victims continue to suffer while their employer continues business as usual, undeterred by the verdicts "we the people" determine as just.

To read more please see: End Damage Caps for Workers Now

CAPS legislation: 42 U.S. Code § 1981a - Damages in cases of intentional discrimination in employment | U.S. Code | US Law | LII / Legal Information Institute