NU Online News Service, June 9, 1:10 p.m.EST

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The Missouri Chamber of Commerce has filed court papers tointervene in a federal lawsuit brought by a handful of people owedmoney from the state’s Second Injury Fund.

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Should the plaintiffs in the case succeed, a court order wouldbe issued to increase the amount paid by businesses to the SecondInjury Fund, which alleviates businesses from paying workers’claims with previous injury.

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Missouri's Second Injury Fund takes businesses off the hook forpaying the claims of workers injured on the job but who have withprevious injuries or conditions. It is currently financed by a 3percent surcharge employers pay on their workers' compensationinsurance.

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The fund is in such dire financial condition that the stateattorney general has stopped payments by the fund.

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The state Chamber of Commerce looks to get involved “to giveMissouri employers a voice in the outcome of this case,” saysDaniel P. Mehan, chamber president and chief executive officer, ina statement.

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The court could the state to pay damages in the lawsuit,increasing the burden on the state budget. Additionally, it couldbe concluded that the courts, not the Second Injury Fund, are the“best means of a remedy for the plaintiffs and others who may havesimilar claims, thereby putting unprecedented legal liability uponMissouri employers,” says the chamber.

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While testifying before a state legislative committee in April,Richard Moore, director of regulatory affairs for the chamber, saidthe fund is bankrupt.

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“There is no longer enough money coming in to the Second InjuryFund to pay the existing adjudicated obligations of the fund,” hesays, adding that the fund in 2010 collected $41 million inrevenues and paid out $40.8 million.

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At the first quarter, liabilities outpaced what the fundcollects, he adds.

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The Second Injury Fund started in 1943 after World War II toencourage employers to hire disabled veterans. However, accordingto the Chamber of Commerce, “now virtually everyone who is injuredhas an attorney file a claim against the Second Injury Fund.” Morethan 28,000 pending cases have accumulated since 2009, the chambersays.

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Legislation was introduced during the 2011 session which wouldhave eliminated the fund, something about 30 other states havedone. Every state had some sort of second injury fund in 1991 buttoday less than 20 do. The legislation did not succeed.

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