The Missouri Legislature passed a bill that raises standards for punitive damages in civil actions and it awaits Gov. Mike Parson's signature.
Senate Bill 591 was one of the reforms that was on the top of legislative priorities for the Missouri Chamber of Commerce and Industry in 2020 to improve legal conditions in the state.
The bill fixes what critics consider problems with the Missouri Merchandising Practices Act by establishing a reasonable consumer standard that actual damages were incurred by an aggrieved party in litigation.
Lawmakers who advanced the legislation argued that many lawyers abused the practice of filing for punitive damages. And, according to the Missouri Chamber of Commerce and Industry, the practice took advantage of businesses.
The Chamber also noted that some attorneys were inclined to seek punitive damages as it would have been considered legal malpractice, under current law, not to file for them.
Some of the language in the bill deals with class action suits, in which juges would identify members of the class action suit and its members would have to make a showing of an identifiable injury.
The bill now awaits action by the governor.
“I’m very comfortable with the punitive aspect in general. We’ve worked over two years with lots and lots of meetings” Sen. Bill White, R-Joplin, told the St. Louis Record. “What it inhibits is someone filing a punitive damages claim with absolutely no basis.”
"The process for determining punitive damages, those awarded above and beyond actual damages, has warranted revision for a very long time," Ray McCarty, president and CEO of Associated Industries of Missouri, told the Missouri Chamber. "Punitive damages are not proper in every case and should be reserved for cases in which the defendant has intentionally caused harm. At the very least, punitive damages should not be alleged in every case."
McCarty said revisions in the bill allow damage assessment when a judge and/or jury decides they are proper and can change behavior positively.