Missouri’s Cole County Circuit Court has ruled that despite a legislative drafting error, the workers’ compensation reforms enacted last year have been in effect since Senate Bills 1 and 130 became effective in August, 2005, according the Chicago, Illinois-based Property Casualty Insurers Association of America.
The trial court recently ruled in favor of Liberty Mutual Insurance Company in the case of Liberty Mutual v. Nixon, stating that “Missouri workers’ compensation laws, as amended by the reforms of 2005, “shall apply to all cases within its provisions except those exclusively covered by any federal law.”
“The court has clearly reinforced the intent of the legislature with this ruling” said Robert J. Hurns, counsel for the PCI, which filed an amicus brief in the case. “This ruling puts the brakes on anyone seeking to game a perceived gap-period where the exclusive remedy provision would not apply. Employers and their insurers can go forward with confidence knowing that the intent and purpose of the workers’ compensation laws have been upheld.”
In March 2005 Missouri enacted workers’ compensation legislation (SB 1 and SB 130), which required employers to pay wage compensation for on-the-job injuries irrespective of fault. Due to a legislative oversight, the new law contained a section that conflicted with another section of the state’s workers’ compensation act. In essence, a literal interpretation of the law would produce the illogical result that Chapter 287 applies to all cases within its provisions except for all cases within its provisions. This would have resulted in accidental on-the-job injuries and deaths being exempted from coverage under the workers compensation system.
In October 2005 Liberty Mutual filed a Petition for Declaratory Judgment, seeking a declaration that the reference to R.S.Mo. 287.120 in R.S.Mo. 287.110.1 was of no legal force and effect and should be stricken from the text of the original bill. PCI was granted permission to file an amicus brief in support of its member company’s position and provided the court with a concise history of workers’ compensation law in Missouri.
PCI is composed of more than 1,000 member companies that write over $184 billion in annual premium, 40.7 percent of the nation’s property/casualty insurance. Member companies write 41.6 percent of the private workers’ compensation market.
Topics Workers' Compensation Missouri
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