In the realm of personal injury law, navigating the intricacies of state statutes is crucial for both attorneys and their clients. Missouri's "No Pay No Play" statute stands as a unique provision with significant implications for residents involved in car wrecks. Enacted with the intention of addressing insurance fraud and reducing premiums, this statute has far-reaching consequences for those seeking compensation after an accident. In this article, we delve into the details of Missouri's No Pay No Play law, its impact on personal injury claims, and recent developments in Missouri courts.

Understanding Missouri's No Pay No Play Statute

Missouri's No Pay No Play statute, codified as Section 303.390 of the Missouri Revised Statutes, essentially limits the ability of uninsured motorists to recover certain damages in personal injury claims arising from car accidents. The statute provides that if a motorist is involved in an accident while uninsured, the motorist may be barred from recovering non-economic damages from the at-fault party, regardless of the severity of their injuries.

Non-economic damages typically include compensation for pain and suffering, emotional distress, and loss of enjoyment of life—elements that can significantly impact the overall compensation awarded in a personal injury case. By restricting access to these damages, the law is supposed to incentivize drivers to maintain proper insurance coverage, thereby reducing the overall number of uninsured motorists on Missouri's roads.

The statute exempts certain individuals from its provisions, such as passengers in uninsured vehicles and pedestrians.  It also exempts uninsured motorists harmed by drunk drivers.  Moreover, the law provides latitude in cases where the driver's insurance lapsed within the six months preceding the accident due to non-payment or if they reasonably believed they were insured, unaware of their coverage's lapse because of their insurer's failure to communicate effectively. These exceptions acknowledge the varying circumstances of accidents and aim to ensure that innocent parties are not unduly penalized. 

Impact on Missouri Drivers

Non-economic damages are a major component of a personal injury claim for compensation, including those stemming from car wrecks. Medical bills are often adjusted by health insurance companies and the amount actually paid by the health provider and owed by the injured party may be substantially smaller as an item to be reimbursed.  Lost income depends on the injured party's employment status and rate of pay and may be non-existent or difficult to prove for homemakers, retirees, and small business owners who do not have a regular salary.  These "economic" damage items are finite and can be calculated to the penny. 

Non-economic damages, which is primarily pain and suffering, on the other hand, are entirely subjective.  They could be tremendous depending the severity of the injury, length and difficulty of recovery, or potential progression or permanence of injury.   Non-economic damages are often considered a multiplier of the hard costs described above when considering an award for damages in an insurance claim or a lawsuit.  So, applying the No Pay No Play statute and preventing recovery for non-economic damages such as pain and suffering is likely to have a drastic effect on the value of a claim by an uninsured motorist in Missouri.  In this sense, opponents of the law argue that it robs Missouri citizens of their right to a fair jury trial.

Recent Cases from Missouri Courts 

To gain further insight into the application and interpretation of Missouri's No Pay No Play statute, it is essential to examine recent cases decided by Missouri courts. The issue at this time is that neither the Missouri Supreme Court nor the Missouri appellate courts have yet to address the substance of Section 303.390, so the various trial courts have reached conflicting conclusions.

The treatment of the statute in the United States District Court for the Western District of Missouri is the most recent example of this inconsistency.  In Jiles v. Schuster Co., Judge Steven Bough ruled that the No Pay No Play statute violated the constitutional right of Missouri residents to a jury trial and rejected its application.  According to Judge Bough:  "This statutory language expressly requires a change to the jury's determination of damages and therefore violates the right to jury trial as stated in the Missouri Constitution."  Id at 916.  In a similar case, Hassell v. Howard, however, his colleague, Chief Judge Beth Phillips, subsequently ruled the statute was not unconstitutional and within the legislature's authority "to abrogate old rights recognized by the common law." 2021 U.S. Dist. LEXIS 253916, *8 (W.D. Mo. 2023).

Conclusion

Missouri's No Pay No Play statute represents a significant departure from traditional personal injury law principles and has profound implications for residents involved in car wrecks. By restricting the ability of uninsured motorists to recover certain damages, the statute helps to ensure motorists on our roads are adequately insured.  It also, however, severely restricts the claim or lawsuit of the uninsured motorist.  The application and interpretation of the statute is still developing and can be confusing, as evidenced by differing opinions from trial courts .  Attorneys and their clients must stay informed about developments in the law and seek expert legal guidance to navigate the nuances of Missouri's No Pay No Play statute effectively.

Ultimately, understanding the intricacies of this statute is essential for anyone involved in a car wreck in Missouri, whether as a plaintiff, defendant, or insurance provider.  If you or a loved one were uninsured during a car wreck, do not hesitate to reach out to Bautista LeRoy's injury lawyers for advice.  You must protect your right to fair compensation and may have the No Pay No Play statute improperly applied to your situation.