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Member, Beacon International Group, Ltd.
Plaintiffs are suing the Show-Me state's Second Injury Fund because of its financial problems, which could leave employers having to pay up.
Ironically, Missouri's Second Injury Fund, like similar funds in other states, is supposed to limit employers' liability. It's supposed to do so by paying claims for worker injuries that occurred during a prior job, but have been re-injured during a current job.
Missouri's Fund, however, has been running out of money since 2005 when legislators capped employers' contribution to the program, according to local news stories. In March, Missouri Attorney General Chris Koster began withholding claims payments because the fund was going broke.
Legislators considered a bill this year that would have eliminated Missouri's fund, but they failed to pass it.
Plaintiffs recently sued the state because their claims payments have been held up and late last week the Missouri Chamber of Commerce and Industry filed court papers asking to intervene in the case.
The Chamber says that if the lawsuit prevails a court could order employers to increase their contributions into the fund.
“Even more troubling would be if the court determined that Missouri circuit courts, not the Second Injury Fund, are the best means of a remedy for the plaintiffs and others who may have similar claims, thereby putting unprecedented legal liability upon Missouri employers,” the chamber said in a recent statement.
Over the years several states have been dissolving the funds as employers and insurers have voiced their dislike of them, according to a BI story available here.