Discrimination damage cap raised (new law)

During the interim, a Remedies Working Group discussed issues related to the current foreclosure crisis. According to the group’s report, they explored whether additional criminal or civil legislation to protect homeowners from discriminatory practices was possible. They discovered that punitive damages under the state’s Human Rights Act were capped at $8,500. A new law raises the cap to $25,000.

“The group could identify no rationale for limiting the amount of punitive damages for discriminatory practices to such an arbitrarily low amount,” the report said.

Sponsored by Rep. Neil W. Peterson (R-Bloomington) and Sen. Mee Moua (DFL-St. Paul), the increase was signed into law by Gov. Tim Pawlenty April 24.

The law, effective Aug. 1, 2008, also clarifies that any sentence imposed under new mortgage fraud statute does not limit the state from prosecuting for conduct that may be a crime under other statutes.

HF3478/SF2915*/CH215