Missouri Department of Labor and Industrial Relations News Release

Bob Holden
Governor

Catherine B. Leapheart
Director

Tammy Cavender
Public Information Coordinator

FOR MORE INFORMATION CONTACT:  Tammy Cavender (573) 751-7500
FOR IMMEDIATE RELEASE:  August 21, 2003

MISSOURI DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS MAILS TORT VICTIMS CHECKS WORTH $4 MILLION

Jefferson City, MO – Checks worth over $4 million were mailed last week to compensate victims through the Tort Victims’ Compensation Program of the Missouri Department of Labor and Industrial Relations, Division of Workers’ Compensation.

In 1987, the General Assembly passed the Tort Victims’ Compensation Act to aid injured persons who were unable to collect a civil judgment against the wrongdoer.  According to the Act, 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 General Assembly enacted legislation authorizing claims to be made against the Fund, giving the Division of Workers' Compensation the duty to evaluate those claims, and setting up criteria and procedures for the evaluation of those claims.

The 2001 legislation established an “initial claims period” (i.e. from August 28, 2001 through December 31, 2002); all eligible claims filed during this period would be entitled to a portion of the $4.8 million.  By December 31, 2002, the Program received 405 claims.  Of these claims, 329 were granted benefits from the Fund, and 76 were denied benefits.

As required by law, on June 30, 2003, the value of all successful claims were aggregated. The value of individual claims ranged from $2,500 to $300,000, and the aggregated total was $61,434,072.49.  On June 30, 2003, there was $4,865,000 available to pay claims.  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 claimant is to receive approximately  7.9 cents for each dollar awarded.   The checks were mailed on August 15, 2003.