Gov. Mike Parson has signed a critical piece of legislation to reform Missouri\u2019s job-crushing legal climate. The governor signed Senate Bill 591 into law on July 1 during stops in St. Peters and Springfield.<\/p>\n
The law reforms Missouri\u2019s punitive damage system and stops the abuse of the Missouri Merchandising Practices Act. The bill was sponsored by Sen. Bill White, a Republican from Joplin, and handled in the House by Rep. Bruce DeGroot, a Republican from Chesterfield.<\/p>\n
Action was needed this year as our state\u2019s legal climate currently ranks 44th in the nation according to the U.S. Chamber Institute for Legal Reform. In addition, the Institute for Legal Reform found that our litigation system is costing every Missouri household $3,099 per year on average.<\/p>\n
During his remarks before signing the bill, Gov. Parson stressed that improving the state’s legal climate has benefits for all Missourians. Noting the state’s current reputation for having a legal climate that’s slanted against businesses, Parson said:\u00a0\u201cThat means you don\u2019t hire people, that means businesses don\u2019t have the ability to expand. Businesses don\u2019t want to come to our state if this legal climate doesn\u2019t change. That\u2019s why this bill is so important.\u201d<\/p>\n
In addition to improving the business climate, Sen. White said that reforming punitive damages in Missouri helps individuals because these claims are often not covered by insurance or businesses, they often target individual assets instead.<\/p>\n
\u201cIt puts people at risk \u2014 their personal assets,” Sen. White said. “That\u2019s very scary. So when someone brings a punitive damages claim, it affects you personally \u2014 not just your business, your insurance \u2014 but you as a person.\u201d<\/p>\n
Reforming the state\u2019s legal climate will also help Missouri\u2019s economy recover from the COVID-19 crisis. U.S. Chamber research has found that a state\u2019s legal climate is a key consideration when businesses consider where to invest and grow jobs. In fact, a survey found that 89% of business leaders said that the legal climate is likely to impact important business decisions.<\/p>\n
\u201cImproving Missouri\u2019s legal climate was the Missouri Chamber\u2019s top priority going into this session and we thank Gov. Parson for signing these very meaningful reforms into law. The Missouri Chamber championed this issue as a way to end the blatant abuse of the state\u2019s punitive damage system, which is often used today to pressure businesses into agreeing to windfall-sized payouts,\u201d said Daniel P. Mehan, Missouri Chamber president and CEO. \u201cAs our state begins its economic recovery from the COVID-19 crisis, we need to ensure Missouri is business-friendly and welcoming for job growth opportunities. Unfortunately, for years our legal climate has been sending the opposite message. But by passing these reforms into law we are finally addressing this problem and helping set the stage for a strong recovery.\u201d<\/p>\n