Last week, my colleagues and I gave initial approval to Senate Bill 591, which concerns punitive damages. This week, we third read and passed a compromised version of SB 591. The House of Representatives will now consider the bill as it moves through the legislative process.
Senate Bill 591 modifies the process for awarding punitive damages. Under current law, plaintiffs often bring forward cases for compensatory and punitive damages. Compensatory damages are awarded to right a wrong, while punitive damages are awarded as a punishment or deterrent. When compensatory and punitive damages claims are made together at the beginning of the case, it can create an inflated number. As a business man myself, I have seen this action scare businesses into making larger settlements. This is an issue because punitive damages are not covered by insurance, so it can cause businesses to lose a lot of money, sometimes leading to the business closing.
Senate Bill 591 still gives judges and juries the discretion to award damages as they deem appropriate, but ensures punitive damages claims must be made toward the end of the judicial process. I am hopeful this change helps protect Missourians’ ability to collect punitive damages without allowing others to take advantage of the process.