537.675. Tort victims' compensation fund established--definitions--notification of punitive damage award to attorney general, lien for deposit into fund--legal services for low-income people. - Missouri Statutes

Tort victims' compensation fund established--definitions--notificationof punitive damage award to attorney general, lien for depositinto fund--legal services for low-income people.

537.675. 1. As used in sections 537.675 through 537.693, thefollowing terms mean:

(1) "Annual claims", that period of time commencing on the first dayof January of every year after December 31, 2002, and ending on the lastday of that calendar year;

(2) "Commission", the labor and industrial relations commission;

(3) "Division", the division of workers' compensation;

(4) "Initial claims period", that period commencing on August 28,2001, and ending on December 31, 2002;

(5) "Punitive damage final judgment", an award for punitive damagesexcluding interest that is no longer subject to review by courts of thisstate or of the United States;

(6) "Uncompensated tort victim", a person who:

(a) Is a party in a personal injury or wrongful death lawsuit; or isa tort victim whose claim against the tort-feasor has been settled for thepolicy limits of insurance covering the liability of such tort-feasor andsuch policy limits are inadequate in light of the nature and extent ofdamages due to the personal injury or wrongful death;

(b) Unless described in paragraph (a) of this subdivision:

a. Has obtained a final monetary judgment in that lawsuit describedin paragraph (a) of this subdivision against a tort-feasor for personalinjuries, or wrongful death in a case in which all appeals are final;

b. Has exercised due diligence in enforcing the judgment; and

c. Has not collected the full amount of the judgment;

(c) Is not a corporation, company, partnership or other incorporatedor unincorporated commercial entity;

(d) Is not any entity claiming a right of subrogation;

(e) Was not on house arrest and was not confined in any federal,state, regional, county or municipal jail, prison or other correctionalfacility at the time he or she sustained injury from the tort-feasor;

(f) Has not pleaded guilty to or been found guilty of two or morefelonies, where such two or more felonies occurred within ten years of theoccurrence of the tort in question, and where either of such feloniesinvolved a controlled substance or an act of violence; and

(g) Is a resident of the state of Missouri or sustained personalinjury or death by a tort which occurred in the state of Missouri.

2. There is created the "Tort Victims' Compensation Fund".Unexpended moneys in the fund shall not lapse at the end of the biennium asprovided in section 33.080, RSMo.

3. Any party receiving a judgment final for purposes of appeal forpunitive damages in any case filed in any division of any circuit court ofthe state of Missouri shall notify the attorney general of the state ofMissouri of such award, except for actions claiming improper health carepursuant to chapter 538, RSMo. The state of Missouri shall have a lien fordeposit into the tort victims' compensation fund to the extent of fiftypercent of the punitive damage final judgment which shall attach in anysuch case after deducting attorney's fees and expenses. In each case, theattorney general shall serve a lien notice by certified mail or registeredmail upon the party or parties against whom the state has a claim forcollection of its share of a punitive damage final judgment. On a petitionfiled by the state, the court, on written notice to all interested parties,shall adjudicate the rights of the parties and enforce the lien. The lienshall not be satisfied out of any recovery until the attorney's claim forfees and expenses is paid. The state can file its lien in all cases wherepunitive damages are awarded upon the entry of the judgment final forpurposes of appeal. The state cannot enforce its lien until there is apunitive damage final judgment. Cases resolved by arbitration, mediationor compromise settlement prior to a punitive damage final judgment areexempt from the provisions of this section. Nothing in this section shallhinder or in any way affect the right or ability of the parties to anyclaim or lawsuit to compromise or settle such claim or litigation on anyterms and at any time the parties desire.

4. The state of Missouri shall have no interest in or right tointervene at any stage of any judicial proceeding pursuant to this section,except to enforce its lien rights as provided in subsection 3 of thissection.

5. Twenty-six percent of all payments deposited into the tortvictims' compensation fund, all interest accruing on the principalregardless of source or designation, and any moneys remaining in the legalservices for low-income people fund as of August 28, 2008, shall betransferred to the basic civil legal services fund established in section477.650, RSMo. Moneys in the tort victims' compensation fund shall not beused to pay any portion of a refund mandated by article X, section 18 ofthe constitution.

(L. 1987 H.B. 700 § 40, A.L. 1996 S.B. 869, A.L. 2001 H.B. 107, A.L. 2008 S.B. 1016)

(2002) Provision permitting state to assert lien on 50% of final judgment for punitive damages does not violate the excessive fine provision of the Eighth Amendment, the Due Process Clause of the Fourteenth Amendment, or the takings clause of the Fifth Amendment. Hoskins v. Business Men''s Assurance, 79 S.W.3d 901 (Mo.banc).