JEFFERSON CITY - Governor Mike Parson signed into law changes to the legal make that was championed by business leaders and tort reform advocates.
Punitive damages will be awarded only if the plaintiff proves by “clear and convincing evidence that the defendant intentionally harmed the plaintiff without just cause or acted with a deliberate and flagrant disregard for the safety of other," according language of SB 591.
Plaintiffs also cannot include a claim for punitive damages in an initial filing and must put forward some evidence before a judge will decide whether it can be added.
The Missouri Merchandising Practices Act (MMPA) is changed to make it more difficult for consumers to sue, including for example over alleged misleading packaging.
"Protecting Missouri businesses and equipping them with the tools to succeed has always been a priority of my administration,” Gov. Parson said in a statement.
“I am proud to sign S.B. 591, which will stop the unfair and unreasonable litigation our businesses face. This bill shows that Missouri is open for business and strikes a fair balance between protecting Missouri employers and employees from frivolous claims while ensuring the ability of those harmed to seek relief in court.”
"Improving Missouri’s legal climate was the Missouri Chamber’s top priority going into this session and we thank Gov. Parson for signing these very meaningful reforms into law," said said Daniel P. Mehan, Missouri Chamber of Commerce president and chief executive.
"The Missouri Chamber championed this issue as a way to end the blatant abuse of the state’s punitive damage system, which is often used today to pressure businesses into agreeing to windfall-sized payouts.”
He added, "As 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.”
State Rep. Bruce DeGroot, R-Chesterfield, who sponsored the legislation in the House, told St. Louis public radio: “In essence what it does is it raises the standards for punitive damages back to what they were originally intended to do. Punitive damages should be awarded to punish wrongdoers, not to punish people who just make a mistake.”
"Gov. Parson’s signature on S.B. 591 is a win for Missourians who suffer the effects of lawsuit abuse and sends a strong signal to those bad actors who would abuse the system ” Tiger Joyce, president of the American Tort Reform Association (ATRA), told the St. Louis Record in a statement.
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