In the Missouri Legislature, we often discuss ways we can grow our economy. These conversations are usually centered on subjects like incentives and tax relief. And while those issues certainly play an important role, lawmakers must also look at another critical aspect of fostering economic growth, which is fixing our state’s legal climate. This week, the Legislature discussed two bills that would implement much-needed tort reform in Missouri.

Businesses relocate to states where they know that if they’re sued, they will face an even-handed and fair justice system. We don’t have that right now. Much of the blame can be placed on a lack of caps on jury awards for non-economic damages, such as “pain and suffering,” which are subjective.

Most states in the country already have limits on non-economic damages, and for years, Missouri did as well. Previously, the cap was set at $579,000. In 2005, the Legislature lowered that to $350,000 in an effort to control the huge numbers of frivolous lawsuits moving through our courts, especially for medical malpractice. These cases were driving up health care costs and causing doctors to flee the state. 

The legislation worked. Lawsuits dropped substantially, victims received fair compensation, and businesses were protected from excessive jury awards. Then, around two years ago, the Missouri Supreme Court ruled those caps were unconstitutional. We’ve now returned to the pre-cap days, with businesses, particularly health professionals, eyeing the door for neighboring states.

Senate Bill 339 would reinstate caps on noneconomic damages in medical malpractice cases. Caps are $400,000 for personal injury, and no more than $700,000 for a catastrophic personal injury. Right now, doctors are required to carry $500,000 in medical malpractice insurance. By lowering the cap for personal injury to $400,000, we can ensure physicians are adequately covered.

Senate Bill 37 would award attorney’s fees and court costs in cases where a settlement offer was previously rejected and when a court rules on a motion to dismiss for a failure to state a claim. Basically, the legislation would make plaintiffs in these lawsuits responsible for paying litigation fees if the case is tossed out of court or a settlement is rejected, or so-called “loser pays.” If a business was forced to defend itself for a frivolous suit, the company can recoup the attorney’s fees and court costs. Both bills are strong steps toward comprehensive tort reform, particularly reinstating caps on non-economic damages.

A lack of caps is having dire effects on the ability of our state to grow. Businesses in Missouri are now vulnerable to frivolous lawsuits, and are often forced to spend funds to defend themselves. If this issue isn’t addressed, medical malpractice insurance will skyrocket, which only increases costs for consumers and pushes good doctors out of the state. It also prevents us from bringing the types of companies to Missouri we need to foster true economic prosperity.

No one denies that victims in civil cases deserve justice. However, if juries are given free rein to hand out huge awards, often out of some mistaken attempt at justice, the health care industry will be hard hit, along with many others. Sound policy balances the interests of both the public and the private.  

Lawmakers are often in the position of finding the middle-ground, because if the law is skewed for either side, the consequences can be devastating. It’s time we move our state back to a position that ends the high number of lawsuits moving through our judicial system while protecting all parties’ right to a fair day in court.

As always, please feel free to contact me or my staff with any questions or concerns at any time. We look forward to hearing your comments and suggestions and trying to answer any questions you may have. You can reach us by phone at 866-277-0882 (toll-free) or (573) 751-2272, or by fax at (573) 526-7381.