Missouri’s largest metro continues grappling with its reputation as a challenging business jurisdiction. St. Louis lands at No. 7 on the American Tort Reform Foundation’s annual “Judicial Hellholes” rankings released Tuesday.
The designation comes as the state’s overall legal climate ranks 44th nationally, reflecting growing concerns about its litigious environment.
“For more than a decade, St. Louis has ranked within the top 10 ‘judicial hellholes’ nationwide,” said NFIB State Director Brad Jones. “Lawsuit abuse doesn’t just stifle the St. Louis economy, but results in the loss of more than 62,000 jobs annually statewide. Missourians can’t afford another decade of inaction by state lawmakers who are beholden to plaintiffs’ lawyers. On behalf of small business owners and the hardworking Missourians they employ, we call on the General Assembly to restore balance to the Show Me state’s litigation environment by prioritizing tort reform.”
The impact on the local economy has been substantial. The report indicates excessive litigation costs St. Louis more than 28,800 jobs each year. Statewide, the economic toll reaches deeper, with annual losses estimated at $1.6 billion.
Recent reform efforts have seen mixed results. While 2020 legislation attempted to reform punitive damages, business groups argue more comprehensive changes are needed. The Missouri Chamber of Commerce is currently backing new legislation to streamline class action lawsuits and reduce the statute of limitations for personal injury cases from five to two years.
Each Missouri resident pays what the report calls a $1,095 “tort tax” annually — costs passed on to consumers through higher prices for goods and services.
NFIB, marking its 80th year advocating for small businesses, continues to push for reform measures in both state and federal venues. The organization represents independent business owners across all 50 states.
–Dwight Widaman | Metro Voice