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Small Business Victory: Governor Sanders Signs Tort Reform Measure Into Law

Small Business Victory: Governor Sanders Signs Tort Reform Measure Into Law

March 4, 2025

Arkansas Legislature advanced tort reform effort to address phantom damages.

The Arkansas Legislature sent HB 1204 to Governor Sanders’ desk, addressing phantom damages and restoring fairness in the state’s judicial system. The Governor signed it into law in early February. HB 1204 was originally introduced by Rep. Jon Eubanks (R-Paris).

NFIB State Director Katie Burns applauded the tort reform measure as a ‘major win’ for small business owners and Arkansans.

“Heading into the session, our members made it clear that tort reform was one of their top priorities. 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. We thank Rep. Eubanks and Governor Sanders for delivering a commonsense bill to address phantom damages and promote greater transparency and fairness in our judicial system.”

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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