Capitol Report: Focus on the economy

I fundamentally believe the job of the legislature at this particular time is to focus on the economy. A key factor for business to grow and flourish in Missouri is the legal environment of our great state. It is my position the best way to protect the businesses in Missouri and allow for growth of our economy would be adequate and desperate relief from lawsuits.

I led the charge for passing strong legal reform in the area of nuisance lawsuits. My success created the most sweeping reforms in our state’s history. My nuisance reform law has resulted in eliminating frivolous lawsuits against agriculture. We in rural Missouri see the immediate results: an ability for our farmers and agricultural businesses to simply stay in business! Lawsuits from over-zealous attorneys and special interest groups are driving up the cost of doing business and hampering the ability of industry to not only grow and expand, but also simply remain in operation! ItÆs time we take the next step by implementing ‘Loser Pay’ legislation.

For this reason, we in the House of Representatives made improving the legal environment for all businesses a key component of the job creation pillar in our Blueprint for Missouri plan. I am committed to this plan because it does not rely on a special carve out or new tax credit to spend money on one particular industry group or business. The failed so-called ‘economic development’ plans that essentially pick winners and losers, and at the same time cost tax payers hundreds of millions of dollars while making a handful of individuals multi-millionaires, are a proven failure for growing the economy of Missouri. That is why we’ve got to focus on the fundamentals of economics and take on the real problems stifling Missouri.

Under our current system, lawsuits are incredibly expensive and are the biggest killer for small businesses; not to mention the best ability to cause costs to sky-rocket. Filing these frivolous cases only allow the plaintiffs the incredible ability to gain everything and lose absolutely nothing. This has got to stop! Settling these lawsuit claims are often times the goal of filing a lawsuit. This is a lose/lose situation for the business because they will have to pay either way. I do not believe we should reward out-of-control trial attorneys who file these claims simply to shake down businesses. This is why I strongly believe HB 1342 is one of the best things we could possibly pass to improve the business climate of Missouri. This legislation would reduce the number of claims overnight because it shifts some of the risk of filing a suit onto the plaintiff.

HB 1342 awards attorney fees if a case is denied by the court for the failure to state a claim under the law. It also encourages opposing parties in legitimate lawsuits to settle their differences out of court. For example, a business is being sued and offers the plaintiff $100,000 to settle the claim. The plaintiff rejects the offer and decides to take the court to trial. The judge awards the plaintiff $40,000 which is less than 50% of the final offer from the business. The business could then be awarded their attorney’s fees. This provision will encourage attorneys to work toward a reasonable settlement and it will keep more cases from going to trial because neither party will want to be on the hook for the cost of the other party’s attorney.

Our court system isn’t supposed to be available to allow attorneys to manipulate the system for their own gain. It is supposed to be available to settle legitimate legal problems and claims. It is about time Missouri gets back to the basics, and original intent of the courtroom, by leveling the playing field for business and industry.

(Missouri State Rep. Casey Guernsey represents the 3^rd House District which includes the counties of  Daviess, Gentry, Worth, Harrison, Grundy, Sullivan and Mercer. He serves on the House Committees of Agri-Business, Appropriations — Agriculture and Natural Resources, Budget, Rules, Special Standing Committee on Renewable Energy, and Interim Committee on Pre-Need Funeral Trust. You may email Rep. Guernsey at [email protected] or telephone 573.751.4285, or mail: Missouri State Capitol, Room 206A, 201 West Capitol Avenue, Jefferson City, MO  65101-6806.)