Full Article at CJ Online
By Hunter Larkin
Running a small business in Kansas has always required a certain amount of grit.
Whether you are navigating fluctuating supply costs, a tight labor market or the general unpredictability of the economy, there is rarely a dull moment. But there is one threat that keeps many of us up at night more than any competitor: the threat of a “shakedown” lawsuit.
For years, a loophole in our state’s “public nuisance” laws has been stretched to its breaking point. Trial attorneys have found a way to sue businesses not for breaking the law, but for simply selling legal products that — somewhere down the line — became part of a broader societal problem. This isn’t just about “big corporations.”
It’s about the ecosystem of Kansas commerce. That is why Senate Bill 462 is the most important piece of economic legislation on the table in Topeka this year.
It brings much-needed clarity and fairness back into the system.
For developers like myself, that predictability is critical. Every subdivision we build requires years of planning and millions of dollars in upfront investment. We cannot move forward confidently if the legal environment is uncertain or constantly shifting.
This bill doesn’t protect bad actors. If a developer cuts corners, violates regulations or causes direct harm, they should absolutely be held accountable. But it does ensure that responsible builders are not penalized simply for doing business in a lawful industry.
To the average consumer, a massive settlement against an industry might look like a win. But as a business owner, I see the “litigation tax” that follows. When insurance companies see Kansas as a “high-risk” state for broad, unpredictable lawsuits, they don’t just absorb that cost — they raise my premiums.
According to the Perryman Group, these excess tort costs result in a staggering loss of billions to the Kansas economy annually. For the average family, that translates to $4400 a year in higher costs for everyday goods and services. For a small business owner like me, it means less capital to hire a new technician, less money to upgrade equipment and a harder time providing competitive benefits to my team.
Now, it’s not about “shielding” bad actors. If a business is negligent or causes direct harm, they should — and will — be held accountable. What this bill does is restore a standard of common sense that has been eroded over time.
First, it clarifies that if a business is following the law and its products are legal, they shouldn’t be sued under a vague “public nuisance” theory just because someone doesn’t like the product. Second, it requires that a plaintiff show “special injury” — actual, specific harm — rather than just being part of the general public.
Critics will claim this bill hurts the “little guy,” but as someone who lives and works on Main Street, I can tell you the opposite is true. The current system enriches a small group of trial lawyers while the rest of us pay the bill through higher prices and restricted growth.
Join me in urging your local representative to pass SB 462 and for Gov. Laura Kelly to sign this legislation into law.
Hunter Larkin is the president of The Larkin Co.