In November, Missouri voters chose much more than a new CEO. They chose a new direction for the state’s business climate.
More to the point, they chose leadership that prioritizes Missouri jobs over special interests. Take, for instance, the plaintiffs’ bar.
Under Gov. Jay Nixon, the plaintiffs’ bar flourished, taking advantage of bad laws to get judges to make bad decisions. They also successfully beat back common-sense lawsuit reforms that would have brought Missouri standards up to the same level as federal courts and most states across the country.
The situation became so bad that asbestos plaintiffs’ lawyers flooded across the river from Madison County, Illinois (commonly known as America’s asbestos lawsuit capital), into St. Louis because they found a friendly ear in courts here. After that, it did not take long for other out-of-state lawyers to see the welcome mat on Missouri’s doorstep.
None of this helps create jobs in Missouri.
In today’s economy, we need to be looking for ways to make Missouri more hospitable to employers. But over the past several years we’ve done the exact opposite, particularly with regard to litigation.
Between 2012 and 2015, Missouri dropped from 34th to 42nd in the Lawsuit Climate Survey of the 50 states conducted by the respected Harris Poll – meaning it now has one of the worst lawsuit climates in the country. And a public opinion survey in 2016 found more than three-quarters of Missouri voters think the number of lawsuits is a serious problem. It’s not just a partisan thing either. A strong majority of Republicans, 89 percent, Independents, 78 percent, and even Democrats, 70 percent, share this negative perception of lawsuits. Being in the bottom 10 is no way to attract businesses, jobs and investments.
But it’s a new day in Missouri.
Gov. Eric Greitens campaigned on the issue of lawsuit reform and knows Missouri’s economic future depends upon it.
Compare this to the outgoing Nixon, who last year vetoed several key lawsuit reform measures, including common-sense legislation that would have kept junk science out of Missouri courtrooms. Greitens has signed that bill into law.
During his tenure, Nixon also shut down a phantom damages bill. The legislation would have allowed juries to hear of the amounts actually paid for medical care, not just the inflated billed amounts.
The newly elected governor and legislature should work together to accomplish a long list of legal reforms that will have direct and positive impact on Missouri’s economic prospects, such as:
1. Reforms to tighten the rules on where lawsuits can be filed, and who can file them;
2. A bill to protect alternative dispute resolution options like arbitration;
3. More transparency in asbestos bankruptcy trusts, to cut down on fraud and ensure that funds are there for victims who truly need them;
4. Legislation to protect taxpayers from paying excessive fees to private attorneys contracted to work on behalf of the state;
5. A proposal to bring Missouri’s employment law back in line with federal standards and turn back court decisions that have made Missouri courts the easiest in the nation to bring unmerited discrimination lawsuits; and
6. Limits on agreements made between plaintiffs and defendants to pursue lawsuits against insurance companies in excess of the policy limits.
The list is long, but the need is urgent.
Fortunately, much of the hard work already has been done. In fact, the legislature passed many of the reforms listed above, only to see them vetoed. With a new governor who understands the importance of legal reform, now is the time to pass them again.
Dan Mehan is president of the Missouri Chamber of Commerce and Industry and Lisa Rickard is president of the Institute for Legal Reform. Mehan can be reached at publications@mochamber.com and Rickard at (202) 463-5724.
