Source: https://www.bscr-law.com/?t=40&an=67599&format=xml&stylesheet=blog&p=5258
Timestamp: 2020-01-20 05:27:26
Document Index: 322769282

Matched Legal Cases: ['§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 537', '§ 408', '§ 408']

Timing of Changes to 537.065 Agreements and the Bad Faith Setup in Missouri | Baker Sterchi Cowden & Rice L.L.C.
July 13, 2017 | Angela Higgins
On July 5, 2017, Missouri Governor Greitens signed the Senate Substitute for the Senate Committee Substitute for the House Committee Substitute for House Bills 339 and 714, which brings significant changes to Missouri third-party bad faith litigation. The legislation substantially amends Mo. Rev. Stat. § 537.065, and enacts a new statute, Mo. Rev. Stat. § 537.058. The new § 537.058 and amended § 537.065 become effective on August 28, 2017.
I.	WHAT CHANGES WITH THE NEW LEGISLATION
1.	Time-limited demands
New § 537.058 requires that any time-limited demand to settle must be transmitted to the tortfeasor’s liability insurer, must be sent in writing by certified mail, and must reference the statute.
2.	Insureds are not permitted to enter into § 537.065 agreements unless the insurer has the opportunity to defend without reservation but refuses.
3.	Notice to insurers before a judgment may be taken against the insured if a § 537.065 agreement has been made with the claimant.
4.	Insurer’s right to intervene in personal injury/property damage lawsuit.
5.	The limitations of the revised § 537.065 apply regardless of what the agreement is called.
II.	MISSOURI LAW ON RETROACTIVE APPLICATION OF STATUTES.
III.	EFFECTIVE DATES OF VARIOUS ASPECTS OF THE LEGISLATION.
A.	Procedural aspect of the legislation that will apply to already-accrued claims and lawsuits in progress as of Aug. 28, 2017
B.	Changes that will apply only on and after Aug. 28, 2017
Policy limits demands.
Policy limits demands made on or after August 28 must conform to the requirements of § 537.058, unless made within 90 days prior to a jury trial on the claim.
C.	Evidentiary aspects of the legislation should be retroactively applied to accrued and pending claims.
New § 537.058.7 provides that any time-limited demand that does not comply with the requirements of the statute “shall not be admissible” in any lawsuit seeking extracontractual damages. This is an evidentiary rule. Under the authority described above, it should apply to the trial of bad faith claims after August 28. Evidentiary statutes are typically applied to accrued and pending claims.
As we have previously discussed, the requirements of § 537.058 for a policy limits demand that would support a bad faith claim (that a demand be left open for 90 days and be accompanied by authorizations) are already required by the statute that authorizes recovery of prejudgment interest, Mo. Rev. Stat. § 408.040. In 2005, as part of comprehensive tort reform efforts, the legislature amended § 408.040 to provide that, before a settlement demand could trigger the accrual of prejudgment interest, it must be transmitted by certified mail, be accompanied by an affidavit of the claimant and, where applicable, medical or wage loss records and authorizations, and be left open for 90 days.