Modifies provisions relating to settlement demands
Impact
If enacted, HB 2277 would significantly alter how settlement demands are structured in the state of Missouri. Currently, separate rules may apply to prior settlement demands in cases alleging extracontractual damages. The bill insists that for any previous demand to be considered a reasonable opportunity to settle, it must meet certain criteria, such as being documented in writing, sent via certified mail, and open for acceptance for a specified period of at least ninety days. This requirement could streamline the settlement process and potentially reduce the number of cases proceeding to litigation.
Summary
House Bill 2277 seeks to modify the provisions surrounding settlement demands in personal injury cases. The bill introduces a definition for '[time-limited] settlement demand,' which is proposed as a formal offer made by or on behalf of a claimant to settle a claim for personal injury, bodily injury, or wrongful death. This offer must be accompanied by specific details, including the amount requested, the date and location of the incident, and a description of the injuries sustained, creating a comprehensive framework for managing settlement discussions prior to litigation.
Contention
However, the bill has sparked notable discussion and contention within legislative circles. Proponents argue that it will create more transparent processes and improve the efficiency of personal injury claims, while critics express concerns over the implications this may have on claimants' rights. There is apprehension that stringent conditions could disadvantage victims seeking redress from tort-feasors, particularly if they feel pressured to settle due to narrow timeframes or complicated procedural requirements. The balance between protecting insurance companies from excessive claims and ensuring fair treatment for injured parties remains a point of debate.