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ST. LOUIS RECORD

Friday, March 29, 2024

Associated Industries of Missouri in favor of punitive damage reform bill

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JEFFERSON CITY – Legislators advanced a proposal on April 29 that will tighten requirements for awarding punitive damages. 

According to the News Tribune, House Bill 489 was sponsored by state Rep. Bruce DeGroot (R-St. Louis) plaintiffs will have to offer proof that the accused intentionally inflicted damages.

Opponents of the bill believe that this will make it easier for defendants to get a pass on wrongdoing, while supporters believe that it will help to protect businesses and the economy of Missouri as a whole. 

Associated Industries of Missouri, the state's oldest business association, is pleased with the advancing of the bill and optimistic about the reform it may bring. 

"Associated Industries of Missouri fully supports punitive damage reform such as that contained in Rep. DeGroot's bill," Ray McCarty, president and CEO of Associated Industries of Missouri, told St. Louis Record. "Punitive damages are alleged as a routine matter in many tort actions today. The goal of the legislation is to limit those allegations to cases where punishment is warranted."

McCarty believes that the bill will ensure that the right parties are being punished while also guaranteeing that the plaintiffs in these cases get what they deserve. 

"Punitive damages are, by definition, meant to punish the bad actor. The bills currently under consideration would allow them for cases in which someone affirmatively hurts another," McCarty said. "We believe the reforms contained in Rep. DeGroot's bill are reasonable and raise the standard above simple negligence. Remember, the plaintiff is made whole through other means - punitive damages are in addition to actual damage recovery."

Overall, the bill might limit the exponential increases of settlements that plaintiffs' attorneys often seek out, McCarty believes.

"We hope the legislature is able to pass this language in the final days of this legislative session," McCarty said.

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