Missouri lawmakers are considering a handful of bills that would help bring fairness to our state’s legal system, ensuring legal climate is not an impediment to economic growth.
This week, the Senate General Laws Committee heard SB 268, sponsored by Sen. Curtis Trent (R-Springfield). Trent’s bill would modify the rules that govern how civil lawsuits are handled in Missouri.
SB 268 would update the collateral source rule, allowing only the actual cost of medical treatment – including discounts or price reductions – to be introduced as evidence in court.
Many states have advanced legislation to reform collateral source statutes and rein in awards that exceed actual recovery costs.
“The hope here is that we will make these cases more accurate,” Trent said.
Another provision in the bill would close a loophole around time-limited settlement demands.
Under SB 268, settlement demands must remain open for at least 90 days. The goal is to give insurers a reasonable opportunity to settle third party liability claims within policy limits.
Similar settlement demand language is included in SB 312 (Trent) and HB 437 (Hardwick), and HB 69 (Overcast) includes updates to the collateral source rule.
Also this week, the House Economic Development Committee heard HB 1068, sponsored by Rep. Matthew Overcast (R-Ava).
Under this bill, franchisees and their employees are not considered employees of the franchisor, unless the franchisor directly controls their hiring, fire or discipline.
“This provides businesses a certain level of certainty when it comes to risk and liability,” Overcast said. “It’s something they can count on.”
Supporters include the U.S. Chamber of Commerce, the American Hotel and Lodging Association and the Missouri Hotel and Lodging Association.
Missouri Chamber Manager of Governmental Affairs Cade Tremain testified in favor of the legislation.
“We want to remove any sort of grey area for both businesses and employees to work more confidently and know the appropriate avenues for a lawsuit if one were to arise,” Tremain said. “Ultimately, we believe the bill provides accountability for both the employer and the employee.”
A companion bill, SB 320, is sponsored by Sen. Nick Schroer (R-Defiance).
For more information, contact Tremain at ctremain@mochamber.com or call (573) 634-3511.
