Show-Me State Times

The Missouri Chamber of Commerce and Industry has expressed its support for a tort reform bill aimed at simplifying the rules for class action lawsuits. Senate Bill 47, introduced by Senator Curtis Trent (R-Springfield), was recently reviewed by the Senate General Laws Committee, which is chaired by Trent.

The proposed legislation seeks to align Missouri's class action rules with federal standards. According to Trent, "Rule 23 was adopted in 2018 by the federal courts to create uniformity in procedures surrounding class action lawsuits, particularly when it comes to the timing of when a class is certified and what the definition of a class is for that certification." He emphasized that these changes are crucial as they influence whether costly actions like discovery proceed and affect settlement incentives and values.

Matt Price, chief legal officer for Diamond Pet Foods, testified in favor of the bill. He highlighted that Missouri's current litigation environment discourages businesses from relocating or expanding within the state. Price stated, "If a business in Missouri wants to fight what it believes is an unmeritorious class action, it faces a Hobson’s choice. You either settle early, against your own principles, or you need to buckle up and be ready to spend several years and several millions of dollars to fight it."

Missouri has been criticized for its legal climate. In 2024, the American Tort Reform Association labeled Missouri as a “Lawsuit Inferno,” citing legislative inaction on addressing lawsuit abuse. The Missouri Chamber aims to lead reforms that would make the state's legal system fairer and more conducive to economic growth.

Luke Reed, Director of Legislative Affairs at the Missouri Chamber, also testified about how this issue impacts businesses across various sizes in Missouri. "We’re happy to support this bill because of the potential for better investments and more fairness across the playing field," Reed said.

For further details, Luke Reed can be contacted via email at lreed@mochamber.com or by phone at (573) 634-3511.