Limits the award of punitive damages to the lesser of defendant’s highest annual gross income during the preceding five years or $5 million. Provides that if the defendant earned more profit from the objectionable conduct than either of these limits, the court could award 1.5 times the amount of that profit. Requires the determination of awards for punitive damages to be made in a separate proceeding. Requires a plaintiff to prove punitive damages by “clear and convincing” evidence. Provides seven criteria for the judge to consider in punitive damages cases, including whether this is the first award against a given defendant.