New limit on lawsuits against businesses in Missouri after governor signs bill

On July 1, Missouri Gov. Mike Parson signed a bill as part of a business-backed effort to control the number of lawsuits against businesses in the state.

This new law concerns lawsuits seeking money for injuries or other harm caused by businesses’ products or actions, as business groups say it has become too easy for plaintiffs to seek punitive damages and thus pressure businesses into larger settlements, according to reporting by Insurance Journal.

In liability lawsuits, plaintiffs can be awarded money to compensate them for their injuries or the harm done to them. In some cases, plaintiffs can be awarded additional money — called punitive damages — intended to punish defendants for their actions.

The law now makes it so that punitive damages will be allowed only when proven by clear and convincing evidence that the defendant “intentionally harmed” someone “without just cause” or acted with “deliberate and flagrant disregard for the safety of others.”

Punitive damage claims are now prohibited from being included when a lawsuit is initially filed, instead requiring plaintiffs to first show a reasonable basis for punitive damages before such claims could be added, reports Insurance Journal.

Another provision puts more restrictions on lawsuits against businesses for selling faulty products or making misleading business claims.