For the first time in several years, tort reform seems to be gaining momentum in the Missouri General Assembly. The Missouri Chamber of Commerce and Industry is leading the push for reforms to bring fairness to our state’s legal system, ensuring legal climate is not an impediment to economic growth.
This week, the House Commerce Committee heard HB 437, sponsored by Rep. Bill Hardwick (R-Dixon). The proposed legislation closes a loophole around settlement demands.
Under HB 437, settlement demands must be made in writing, reference the statute, and remain open for 90 days. The goal is to give insurers a reasonable opportunity to settle third party liability claims within policy limits.
“It’s all about making sure it’s fair, that both the claimant and the defendant know what’s on the table,” Hardwick said.
Luke Reed, director of legislative affairs for the Missouri Chamber, testified in support.
“It brings fairness and balance to settlement issues,” Reed said. “It levels the playing field for insurance companies as they try to address open claims.”
Also this week, the House Emerging Issues Committee heard HB 534, sponsored by Rep. Dane Diehl (R-Butler). The bill would update the rules regarding the certification of classes in class action lawsuits, bringing Missouri in line with federal law.
A similar bill – SB 47, sponsored by Sen. Curtis Trent (R-Springfield) – was third read and passed by the full Senate.
“We want to make sure businesses in the state of Missouri have a fair shake on class action litigation,” Diehl said. “We think that will help the business environment, encourage more businesses to locate here.”
For more information on these bills, contact Luke Reed at lreed@mochamber.com or call (573) 634-3511.
