[Code of Federal Regulations]
[Title 6, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 6CFR25.7]

[Page 113-114]
 
                       TITLE 6--HOMELAND SECURITY
 
   CHAPTER I--DEPARTMENT OF HOMELAND SECURITY, OFFICE OF THE SECRETARY
 
PART 25_REGULATIONS TO SUPPORT ANTI-TERRORISM BY FOSTERING EFFECTIVE
 
Sec.  25.7  Litigation management.

    (a) Liability for all claims against a Seller arising out of, 
relating to, or resulting from an Act of Terrorism when such Seller's 
Qualified Anti-Terrorism Technology has been deployed in defense 
against, response to, or recovery from such act and such claims result 
or may result in loss to the Seller shall not be in an amount greater 
than the limits of liability insurance coverage required to be 
maintained by the Seller under this section or as specified in the 
applicable Designation.
    (b) In addition, in any action for damages brought under section 442 
of Title 6, United States Code:
    (1) No punitive damages intended to punish or deter, exemplary 
damages, or other damages not intended to compensate a plaintiff for 
actual losses may be awarded, nor shall any party be liable for interest 
prior to the judgment;
    (2) Noneconomic damages may be awarded against a defendant only in 
an amount directly proportional to the percentage of responsibility of 
such defendant for the harm to the plaintiff, and no plaintiff may 
recover noneconomic damages unless the plaintiff suffered physical harm; 
and
    (3) Any recovery by a plaintiff shall be reduced by the amount of 
collateral source compensation, if any, that the plaintiff has received 
or is entitled to receive as a result of such Acts of Terrorism that 
result or may result in loss to the Seller.
    (c) Without prejudice to the authority of the Under Secretary to 
terminate a Designation pursuant to paragraph (h) of Sec.  25.6, the 
liability limitations and reductions set forth in this

[[Page 114]]

section shall apply in perpetuity to all sales or deployments of a 
Qualified Anti-Terrorism Technology in defense against, response to, or 
recovery from any Act of Terrorism that occurs on or after the effective 
date of the Designation applicable to such Qualified Anti-Terrorism 
Technology, regardless of whether any liability insurance coverage 
required to be obtained by the Seller is actually obtained or maintained 
or not, provided that the sale of such Qualified Anti-Terrorism 
Technology was consummated by the Seller on or after the earliest date 
of sale of such Qualified Anti-Terrorism Technology specified in such 
Designation and prior to the earlier of the expiration or termination of 
such Designation.
    (d) There shall exist only one cause of action for loss of property, 
personal injury, or death for performance or non-performance of the 
Seller's Qualified Anti-Terrorism Technology in relation to an Act of 
Terrorism. Such cause of action may be brought only against the Seller 
of the Qualified Anti-Terrorism Technology and may not be brought 
against the buyers, the buyers' contractors, or downstream users of the 
Technology, the Seller's suppliers or contractors, or any other person 
or entity. In addition, such cause of action must be brought in the 
appropriate district court of the United States.