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FOR MORE INFORMATION CONTACT: Tammy Cavender (573)
751-7500
FOR IMMEDIATE RELEASE: July 5, 2007
Missouri Department of Labor Mails Tort Victims Checks Worth $470,000
Jefferson City, MO – The Missouri Department of Labor and Industrial Relations’ mailed checks worth $470,000.02 this week to compensate victims through the Tort Victims’ Compensation Program.
“This program assists people who have been injured due to the negligence or recklessness of another person and who have been unable to obtain full compensation because the party at fault had no insurance, filed for bankruptcy, and other reasons specified in law,” said Rod Chapel, director of the Missouri Department of Labor and Industrial Relations. “The fund is a payor of last resort and can assist Missourians during a financial hardship.”
The Tort Victims’ Program received 37 claims during the 2005 annual claims period. Of these claims, 27 were granted benefits from the Fund. The value of the individual claims ranged from $25,000 to $300,000 and the aggregated total was $5,411,768.73. Under the law, the value of all successful claims must be aggregated. The amount of funds available to pay claims during the 2005 period was $470,000.02. As the total amount awarded exceeded the amount available for payment, the law required that each claim be paid on a pro rata basis. Therefore, each claim received approximately 8.7 cents for each dollar awarded. All checks were mailed on June 25, 2007.
Half of all punitive damages collected from civil judgments are paid to the state of Missouri, and a portion is used to compensate tort victims. The Program had no funds to distribute until 1998, when it received $4.8 million in punitive damages from a products liability lawsuit. In 2001, the Missouri General Assembly enacted legislation authorizing claims to be made against the Fund, giving the Missouri Division of Workers' Compensation the duty to evaluate those claims, and setting up criteria and procedures for the evaluation of those cases.
The Division of Workers’ Compensation continues to accept claims against the Tort Victims’ Compensation Fund and will maintain them for future review when additional funding is received.
For more information regarding the Tort Victims’ Compensation Fund, please visit http://www.dolir.mo.gov/wc/tort/ or call (573) 751-4231.
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Information and Planning · 421 East Dunklin
· P.O. Box 504 · Jefferson City, MO
65102-0504
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