(1)4.5 Civil Penalties for Bad Faith Actors

(a) Any legal actor who is found to have acted in bad faith in violation of this chapter may be subject to civil penalties, independent of any criminal liability or professional discipline.

(b) Civil penalties under this section may include a statutory monetary penalty not to exceed two hundred fifty thousand dollars ($250,000). Any penalty imposed shall be proportionate to the severity, duration, and impact of the bad faith conduct.

(c) In addition to statutory penalties, a bad faith actor may be held civilly liable for damages arising from their conduct, including but not limited to actual damages, consequential damages, and any reasonably foreseeable harm caused by the violation.

(d) Where appropriate, a court may order the bad faith actor to pay restitution or reimbursement equal to the financial harm, loss, or costs incurred as a direct result of the actor’s conduct.

(e) The imposition of civil penalties under this section shall not preclude:

• Criminal prosecution where authorized by law;
• Professional discipline, suspension, or disbarment under this chapter; or
• Separate civil actions brought by affected parties.

(f) All civil penalties imposed under this section shall be subject to judicial review and due process protections consistent with this code and applicable law.