JEFFERSON CITY – Several civil justice reforms are being considered in the Missouri legislature, but one that would reform how punitive damages are awarded would go a long way toward improving the state's business climate, according to a state industry leader.
Senate Bill 65 would allow for punitive damages only when a claimant proves by "clear and convincing evidence" that a defendant in a civil lawsuit intentionally inflicted harm without just cause or acted with a "deliberate and flagrant disregard for the safety of others."
Missouri Chamber of Commerce and Industry Vice President of Government Affairs Matthew Panik told the St. Louis Record that the bill "could apply to any business," with "broad application," considering that it's "important for us to take up this year and try to reform a little bit and bring some common sense changes to the way punitive damages are awarded."
Panik said the measure is particularly important given the state's lawsuit climate.
"The lawsuit climate is, unfortunately, pretty well-known now," he said. "Businesses across the country know that Missouri and St. Louis, in particular, really present some challenges when businesses are presented with litigation or faced with litigation. I think reforming punitive damages would be a big part on improving that climate."
He also added that the issue "can be a detriment to businesses in many ways, knowing that, if they go to trial, even if they feel confident about the outcome, punitive damages are always going to be on the table."
There is still no date when the bill will be voted by the full Senate. If passed and signed into law, the measure will go into effect on Wednesday, Aug. 28