The Charitable Cap: When It Applies, Who It Protects And Why It Matters

When a personal injury lawsuit is brought against a charitable organization, significant emphasis is placed upon evaluating whether the organization is legally liable for the injuries and the extent of the injuries resulting from the accident. Although liability and damages considerations are critical to any lawsuit, it is also important to evaluate any statutory defenses which might be available to the non-profit business.

A particularly compelling defense that is available to charitable organizations is a cap on damages that insulates the organization from exposure above a certain cap that is set for a particular jurisdiction. In Massachusetts, charitable associations are not liable for more than $20,000.00 in damages for injuries in tort (such as a negligence action for bodily injury) caused by the organization while engaging in its charitable activities. See M.G.L. c. 231 § 85K. This cap, and similar caps in other jurisdictions, present a critical defense for