Senator Ron Richard’s Legislative Column for the Week of April 25

Richard Column

Missouri Lawmakers Send Tort Reform Legislation to Governor’s Desk

Legislative News

One of our chief concerns this session has been addressing Missouri’s unfair and outdated civil judicial system. This toxic legal climate has forced businesses and job creators out of the state. Missourians do not just want serious legal reform, we need it, and this is precisely what we have been working to achieve over the last four months. This week, the Legislature truly agreed and finally passed two common-sense measures that will go a long way toward improving the Show-Me State’s legal climate.

Senate Bill 591 modifies provisions relating to expert witness testimony. Currently, Missouri is one of only 10 states that has not adopted the updated Daubert Standard, which provides a rule of evidence regarding the admissibility of expert witness testimony during legal proceedings. It also helps ensure that only those individuals who are truly expert witnesses may provide expert witness testimony. Essentially, the standard allows judges to act as gatekeepers so juries are not subjected to irrelevant or unreliable testimony.

Missouri’s failure to adopt the updated Daubert Standard has had the unfortunate side effect of calling negative attention to our judicial system and is one of the reasons the American Tort Reform Association has ranked Missouri as the fourth worst judicial hellhole in the country — preceded only by California, New York and Florida. We have clearly fallen behind in this area, which is why I’m very pleased we’re finally moving in the right direction with SB 591.

A second reform bill, Senate Bill 847, modifies provisions relating to the collateral source rule and establishes that the appropriate recovery for medical expenses is the actual cost or amount paid, rather than the value of the medical care rendered.

In 2005, the Legislature passed a comprehensive tort reform bill that, among other things, aimed to fairly compensate injured parties for their medical expenses. The intent was always to allow injured parties to recover the actual cost of their medical bills, or the true dollar amount they paid. Unfortunately, the courts have since misinterpreted the intent of the legislation and the definition of “value” by ruling that the value of health care is not what a plaintiff actually paid out of pocket, but the full billed amount. This has resulted in plaintiffs trying to recover compensation for medical expenses they were never required to pay. To complicate matters, juries do not always see the actual cost a plaintiff paid; they only see the full billed amount and often award “phantom damages” as a result.

By restoring fairness to personal injury litigation, we will further improve Missouri’s legal system and economy. By reducing the cost of insurance for Missouri doctors and businesses, we will help stabilize, even possibly lower, health care costs for consumers. Most importantly, we are sending a clear message to the medical community that we want their business and expertise to stay here in the Show-Me State.

Both SB 591 and SB 847 are now on the governor’s desk, awaiting his signature.

We also took steps this week to ensure Missouri’s volunteer fire departments can continue providing vital emergency services to our rural communities. Just like everything else, the cost of workers’ compensation insurance premiums has continued to rise over the years — so much so that many of Missouri’s more than 500 volunteer fire departments may now be forced to close their doors simply because they can no longer afford the insurance coverage they’re required to carry.

Senate Bill 613 will provide Missouri’s volunteer fire protection associations with some relief by allowing them to apply to the State Fire Marshall for up to $2,000 in reimbursements to cover the cost of their workers’ compensation insurance premiums. It isn’t just our volunteer fire departments who will benefit from SB 613 — area homeowners will as well, since their home insurance rates are partly based on their proximity to a fire department. Senate Bill 613 has been passed by the Senate and is now on its way to the House for further consideration.

Finally, today, the Senate gave its approval to House Bill 1733. During floor debate, a Senate amendment was offered that will make it a class D felony if a person is found to have left the scene of an accident and a death occurs as a result of the same accident. I especially would like to thank Sen. Will Kraus, R-Lee’s Summit, for offering this amendment.

Contact Me­

I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-2173. You may write to me at Senator Ron Richard, Missouri Senate, State Capitol, 201 W. Capitol Ave., Rm. 326, Jefferson City, MO 65101; e-mail me at ron.richard@senate.mo.gov or visit me on the Web at www.senate.mo.gov/richard.

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