Missouri Gets New Limits On Lawsuits

NU Online News Service, March 29, 1:37 p.m. EST?Missouri Republican Gov. Matt Blunt has put his signature on a new law that will set limits on punitive damages and institute other changes in civil litigation.

The measure, HB 393, which becomes effective Aug. 28, "should greatly improve the state's liability climate," according to Steve Schneider, vice president of the Midwest region for the American Insurance Association.

Mr. Schneider said the measure will provide "a common sense legal environment, with the rights of consumers to seek redress when wronged [preserved]."

A state House-Senate conference committee of the Republican-controlled legislature passed a compromise version of HB 393 on March 16. Gov. Blunt went to Springfield, Joplin, Cape Girardeau and Kansas City on Monday to perform ceremonial signings of the bill, which has been the state Republican Party's top priority for three years.

Among the provisions in the bill is language limiting punitive damages to $250,000 or three times the net amount of the judgment awarded the plaintiff against the defendant--whichever is greater.

The bill also lowers the cap on non-economic damages that can be recovered against health care providers to $350,000 (not adjusted for inflation), irrespective of the number of defendants.

Venue rules for in-state and out-of-state causes of action for plaintiffs and defendants--both corporate and individual--are tightened.

Joint-and-several liability is eliminated, and the measure specifies that the liability of each defendant found to be 50 percent or less at fault is subject only to that percentage of the judgment.

Interest calculations for pre- and post-judgment claims must be based on the federal funds rate plus a specific percentage, depending on the case.