Lawmakers in Kentucky have introduced Senate Bill 195, a proposal aimed at changing the state’s civil justice system. The bill is designed to address concerns raised by small business owners regarding legal costs and fairness in litigation.
Tom Underwood, State Director of the National Federation of Independent Business (NFIB) in Kentucky, expressed support for the measure. “You shouldn’t be targeted for a lawsuit simply because some trial lawyer thinks you have the money to pay,” he said. “Small businesses operate on thin margins, so the cost of defending itself against even a single frivolous claim could be enough to put a small business out of business.
“Our members believe in accountability and a fair legal system,” he added. “If you’ve been hurt, you have a right to seek compensation, but Senate Bill 195 makes practical updates that can help reduce unnecessary costs and improve consistency without capping damages or denying anyone their day in court.”
The legislation was introduced by Senator Craig Richardson of Hopkinsville. If passed, it would prevent plaintiffs from recovering damages if they are found to be at least 50 percent responsible for their own injuries. Juries would also be allowed to consider third-party involvement when assigning fault. Additionally, awards for medical damages would be limited to amounts actually paid or owed instead of higher listed prices.
Underwood explained that these changes are important because litigation expenses directly impact small businesses’ finances. He stated, “When damage awards are based on amounts no one actually paid, or when fault cannot be fully and fairly allocated, insurance costs rise. Higher premiums mean less money to hire workers, replace old equipment, or keep prices in check for customers.”
Senate Bill 195 also proposes clearer procedures for medical malpractice and personal injury claims by introducing advance notice requirements and documentation standards. Underwood believes these provisions could lead to earlier dispute resolution and shorter litigation periods.
“Small business owners need a legal system that is predictable and balanced,” Underwood said. “Updating our liability laws would help strengthen Kentucky’s business climate, protect jobs, and support communities across the commonwealth.”
