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Arkansas Small Business Owners Applaud House’s Passage of HB 1204 to End Phantom Damages

Arkansas Small Business Owners Applaud House’s Passage of HB 1204 to End Phantom Damages

January 30, 2025

“Small business owners want our judicial system to remain fair for all Arkansans.”

LITTLE ROCK (Jan. 30, 2025) – Following the House’s passage of HB 1204, which would restore fairness and transparency in Arkansas’ judicial system, NFIB State Director Katie Burns applauded the measure and urged the Senate to swiftly approve it and send it to the Governor’s desk.

“Small businesses want our judicial system to remain fair for all Arkansans. Our Main Street business owners operate on infamously thin margins, and excessive tort costs, rising insurance premiums, and inflation all make it more difficult for them to keep their doors open and workers employed. Ensuring that plaintiffs only recoup the medical bills paid by an insurer is a commonsense solution that will promote greater fairness in Arkansas’ judicial system and put an end to phantom damages. We urge the Senate to swiftly approve this measure and send it to the Governor’s desk for signature.”

Background:

According to NFIB’s annual survey, more than 82% of Arkansas members who participated in the survey strongly support passing legislation to limit excessive lawsuit awards in personal injury cases.

A recent U.S. Chamber study shows that the average Arkansas household pays $2,942 in tort costs.

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