Automatic stay of proceedings, when, duration
When a business that buys workers' compensation insurance goes broke and can't pay, all ongoing legal cases involving that business get put on pause — for up to three months or longer if a court allows it. This pause gives the guaranty corporation (a special group that steps in to help pay claims) time to handle those cases. The corporation can also ask a court to throw out any decisions that were made because the business didn't show up to defend itself, and can fight those cases fresh. The corporation can also ask for the pause to be shorter or skipped entirely.
287.882. Automatic , when, duration. — All proceedings in which an is a , or is to defend a party, in any court or before any or in this state shall be for up to three months, or for such additional period from the date of an against the with a finding of , entered by a or from the date the of the that the member employer has fully expended all , , and all other available , and is not able to pay , as is necessary by a court of competent jurisdiction to proper by the of all pending causes of as to any arising from a under any decision, , or finding based on the of the . The corporation, either on its own behalf or on behalf of the insolvent member employer, may apply to have such judgment, , decision, verdict, or finding by the same court or that made such judgment, order, decision, verdict, or finding and shall be permitted to defend against such on the . If requested by the corporation, the stay of proceedings may be shortened or .
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Source & history notes
(L. 1992 H.B. 975)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.