NFIB Urges Legislative Action Following New Report on Cost of Lawsuit Abuse

April 26, 2023

NFIB Urges Legislative Action Following New Report on Cost of Lawsuit Abuse

JEFFERSON CITY (April 26, 2023) – New data from the Citizens Against Lawsuit Abuse (CALA) found that businesses in Missouri continue to experience revenue and job loss as a result of the state’s flawed civil justice system. Responding to the impact of excessive civil court costs on the state’s overall economy, NFIB State Director Brad Jones said: “Small businesses in Missouri should not have to worry about added costs from frivolous lawsuits. Unfortunately, this report shows that lawsuit abuse continues to cost businesses massive amounts each year. This new data underscores the importance of passing bills like SB 117, which would bring Missouri’s legal climate into closer step with neighboring states and give small business owners greater certainty. It’s time for the General Assembly to act on tort reform.” According to the report, excessive tort litigation costs Missouri more than $4 billion each year. Additionally, 57,905 jobs are lost every year. The report claims, “tort reform can lead to substantial economic benefits, and states which have implemented reforms have seen improved judicial efficiency and measurable advancement in economic performance.” Background: SB 117 would shorten the window a plaintiff can file a lawsuit from five years to two years. This reform would give small businesses greater certainty by reducing the risk of frivolous litigation. CLICK HERE to learn more. Regional highlights from the report:

In Kansas City, lawsuit abuse costs residents more than $1.4 billion annually. Additionally, 20,418 jobs are lost per year.

In Springfield, residents are losing more than $235 million each year. Additionally, 3,380 jobs are lost per year.

In St. Louis, residents are losing more than $2.2 billion annually. Additionally, 32,249 jobs are lost in the region every year.

Topics:

Legal

State:

Missouri

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