May 20, 2020
TO THE MEMBERS OF THE UNITED STATES CONGRESS:

The undersigned chambers of commerce urge Congress to pass timely, temporary and targeted liability relief legislation to provide businesses a safe harbor from unwarranted lawsuits that, left unchecked, will endanger the fight against the pandemic and undermine the safe and orderly return to work for millions of Americans.

From distillers who switched to producing hand sanitizers, to manufacturers that transformed their operations to construct personal protective equipment (PPE) and ventilators, to front line medical professionals treating the afflicted, to pharmaceutical companies that are expediting research into cures, American businesses have rallied to fight the pandemic. During the stay-at-home orders, essential businesses have remained open and innovated in ways that permitted them to continue to provide critical services and supplies. Now millions of other businesses are in the process of reopening, desiring to do so in a safe manner that protects their employees and customers.

This is an unprecedented situation and despite employers鈥� best efforts to comply with public health guidance, many are concerned that they will be forced to defend themselves against a wave of lawsuits. Their concern is driven by the fact that each day brings news of more lawsuits that have already been filed. That is why Congress should provide a safe harbor that holds truly bad actors accountable, but that protects those employers who are working to follow public health guidance. Specifically, temporary protections should remain in place for the duration of the pandemic crisis and response that cover:

鈥� Businesses that work to follow government guidelines against COVID-19 exposure claims.
鈥� Healthcare providers and facilities on the front lines of the COVID-19 response.
鈥� Manufacturers that repurposed production and distribution to provide PPE, sanitizers, and other needed countermeasures.
鈥� Companies that have donated their stock of supplies to hospitals and medical professionals.
鈥� Public companies that could face securities lawsuits, including those driven largely on stock price drops resulting from the global pandemic under the spurious assertion that management failed to warn investors.

To ensure that we continue to wage war against the pandemic while also safely returning Americans to work, Congress must act without delay.

Sincerely,

Business Council of Alabama
Alaska 麻豆传媒映画
Arizona 麻豆传媒映画 of Commerce and Industry
Arkansas State 麻豆传媒映画 of Commerce/AIA
California 麻豆传媒映画 of Commerce
Colorado 麻豆传媒映画 of Commerce
Connecticut Business & Industry Association
DC 麻豆传媒映画 of Commerce
Delaware State 麻豆传媒映画 of Commerce
Florida 麻豆传媒映画 of Commerce
Georgia 麻豆传媒映画 of Commerce
麻豆传媒映画 of Commerce of Hawaii
Idaho Association of Commerce & Industry
Illinois 麻豆传媒映画 of Commerce
Indiana 麻豆传媒映画 of Commerce
Iowa Association of Business and Industry
Kansas 麻豆传媒映画 of Commerce & Industry
Kentucky 麻豆传媒映画 of Commerce
Louisiana Association of Business and Industry
Maine State 麻豆传媒映画 of Commerce
Maryland 麻豆传媒映画 of Commerce
Associated Industries of Massachusetts
Michigan 麻豆传媒映画 of Commerce
Minnesota 麻豆传媒映画 of Commerce
Mississippi Economic Council
Missouri 麻豆传媒映画 of Commerce & Industry
Montana 麻豆传媒映画 of Commerce
Nebraska 麻豆传媒映画 of Commerce & Industry
Las Vegas Metro 麻豆传媒映画 of Commerce
Business and Industry Association of New Hampshire
New Jersey 麻豆传媒映画 of Commerce
New Mexico Association of Commerce & Industry
The Business Council of New York State
North Carolina 麻豆传媒映画
Greater North Dakota 麻豆传媒映画
Ohio 麻豆传媒映画 of Commerce
State 麻豆传媒映画 of Oklahoma
Oregon Business and Industry
Pennsylvania 麻豆传媒映画 of Business and Industry
Puerto Rico 麻豆传媒映画 of Commerce
South Carolina 麻豆传媒映画 of Commerce
South Dakota 麻豆传媒映画 of Commerce and Industry
Tennessee 麻豆传媒映画 of Commerce & Industry
Texas Association of Business
Salt Lake 麻豆传媒映画
Vermont 麻豆传媒映画 of Commerce
Virginia 麻豆传媒映画 of Commerce
Association of Washington Business
West Virginia 麻豆传媒映画 of Commerce
Wisconsin Manufacturers & Commerce
Wyoming State 麻豆传媒映画 of Commerce
U.S. 麻豆传媒映画 of Commerce

The post READ: Coalition of American 麻豆传媒映画s drafts letter to Congress regarding liability relief appeared first on 麻豆传媒映画.

A leading expert on lawsuit abuse says the U.S. Congress must act quickly to adopt reforms to protect businesses from excessive litigation as society starts to reopen.  

One of the biggest fears businesses have right now is that they will be the target of lawsuits related to COVID-19, Harold Kim, president of the U.S. 麻豆传媒映画 of Commerce Institute for Legal Reform told 麻豆传媒映画. 

鈥淚鈥檝e been doing legal reform for nearly 20 years now and I have never seen a groundswell of concern about the liabilities that are going to emerge out of the coronavirus outbreak,鈥� said , who is recognized as a leader in helping to reshape the nation鈥檚 litigation climate.    

鈥淚t doesn鈥檛 really matter if you are a Fortune 500 business or a coffee shop in downtown Phoenix,鈥� he said. 鈥淭hese are real issues and the fear and the concern and the cloud of liability is something that policymakers in Washington — but also throughout the country —  are taking a really close look at because it’s a huge, huge issue as the country starts to reopen and restarts the economy moving forward.鈥�  

Protections needed coast-to-coast 

Litigation reforms are needed to address the unique challenges of COVID-19, said Kim, who applauded Arizona and other states that have passed measures or are moving forward to adopt similar laws to protect industry. On Monday, the Arizona House Rules Committee approved the introduction of a bill to provide protections for businesses and organizations that follow safety guidelines to prevent outbreaks of the disease.  

The best way to move forward is an 鈥渁ll hands on deck鈥� approach to the problem with both the federal government and state legislatures enacting protections to assure liability concerns are covered coast-to-coast, Kim said. 

Liability reforms, however, would not protect companies or employers that engage in recklessness or wilful or gross negligence involving COVID-19, he said. 

鈥淲e are encouraging Congress to enact at the federal level a safe harbor for companies to receive liability protections if they follow the CDC and/or state or local guidance when it comes to social distancing; when it comes to protective equipment,鈥� he said. 鈥淎nd it’s important for companies and businesses, and even churches, and childrens鈥� care centers, and charities, that they know what the standard of care is in moving forward.

鈥淚f you have that standard of care then you should not be subject to a negligence lawsuit.鈥�

Four critical areas for protection 

The Institute is recommending four areas for protection in the next federal stimulus package:

Exposure 

As businesses open up, they are vulnerable to lawsuits from customers and employees who may claim they did not take reasonable precautions to safeguard against the virus. Businesses that follow state and federal guidelines for protections would be shielded from these kinds of claims. 

Product liability 

Manufacturers and other businesses that have been taking measures to help fight COVID-19 including producing personal protection equipment (PPE) and hand sanitizers. Individuals or companies who voluntarily provide PPE also would be protected. 

Medical liability 

Front line medical workers who care for coronavirus patients.

Securities class action lawsuits 

Companies that had to take actions in response to the coronavirus would be shielded from class action lawsuits claiming those actions caused stocks prices to drop.

鈥淭he things we鈥檙e focused on doing in Washington is to look for reforms that are timely because it’s got to happen quickly,鈥� Kim said. 鈥淭his can鈥檛 happen over the course of the next five years. It will be too late. They have to be targeted so that they鈥檙e narrow enough and tailored enough to address the solutions and they have to be temporary so that it responds to the COVID-19 crisis.鈥�

Historically, Congress has come together as a bipartisan force to address liability reform after other disasters and major events like 9/11 and Y2k, Kim said. Now, is the time for lawmakers to do it again. 

Americans support protections against COVID-related lawsuits 

Most Americans support the idea of protections for businesses, according to a national released this month by the Institute for Legal Reform. A coalition of Republican, Democrat and Independent voters were polled for the survey. 

More than six in 10 Americans believe that Congress should extend liability protections to employers. 

Other findings reveal that:   

-84 percent of Americans believe essential businesses like grocery stores and pharmacies need protection from lawsuits related to the coronavirus

-82 percent believe that — aside from cases of gross negligence — employers who follow public health guidelines to protect their onsite customers should be shielded from exposure lawsuits

-75 percent agree that makers of hand sanitizers and other cleaning products should be protected as well

Safety guidelines protect businesses and consumers

It鈥檚 clear that many Americans support these kinds of protections as long as businesses act responsibly and follow guidelines laid out by the CDC and the states, said Glenn Hamer, president and CEO of the Arizona 麻豆传媒映画 of Commerce and Industry. 

鈥淚f this is done right, this is part of the solution in terms of not just economic health but  physical health. By bringing that safe harbor and encouraging good behavior you鈥檙e going to have safer workplaces and safer places for customers to visit.鈥�

The post Businesses fear onslaught of COVID-19 lawsuits as society reopens appeared first on 麻豆传媒映画.

Cities and counties suing oil and gas manufacturers over climate change.

School districts taking an e-cigarette producer to court, claiming it is marketing to minors.

Governments suing drugmakers because of overdose deaths.

These are examples of a new generation of class action suits that are benefiting trial attorneys to the tune of hundreds of millions of dollars. But consumers and victims? Not so much.

Trial attorneys courting municipalities for cash settlements

Now local governments are increasingly teaming up with contingency fee lawyers to influence public policy issues through litigation, and businesses are paying the price whether claims are valid or not, said Lauren Sheets Jarrell, counsel for the non-profit American Tort Reform Association (ATRA).

ATRA, the U.S. 麻豆传媒映画 of Commerce Institute for Legal Reform, the Arizona 麻豆传媒映画 of Commerce and Industry, the National Federation of Independent Business, and other business advocacy groups are working to increase public awareness about class action abuses.

鈥淪ome of these lawsuits are looking to hold companies liable regardless of what was understood at the time that the company sold the products or in some cases even if they聽 complied with government regulations or were approved by the government,鈥� Sheets Jarrell said.

Companies often are forced to settle to avoid years of litigation.

What next on the list?

This is a real concern to the business community that is faced with a trial bar association eager to expand a centuries-old public nuisance law into new arenas, she said.

鈥淎utomakers could be held liable for accidents caused by drunk drivers, fast food companies could be liable for the cost of obesity, beverage companies could be sued for the cost of cleaning up plastic in oceans.鈥�

Twist on old law benefits attorneys, few others

At the heart of the problem is a new twist on the ancient public nuisance doctrine, business advocacy groups said.

Originally, the doctrine鈥檚 main purpose was to protect the public from nuisances like a homeowner hoarding explosives in his garage, a charlatan practicing medicine without a license, or a local factory causing air pollution.

Over the past decade, however, it鈥檚 become a new tool for trial attorneys. Some class actions are meritless cases in which up to millions of plaintiffs with unique injuries and grievances are granted class status, often without the knowledge of class members.

Raising awareness about trial attorney abuses

鈥淲hat we鈥檙e seeing is an emerging trend with the trial lawyers and plaintiffs鈥� trial bar taking an expansive view of the public nuisance law,鈥� Sheets Jarrell. 鈥淭hey鈥檙e courting state and local governments to sue over major public policy issues.鈥�

Elected officials, the scientific medical community, law enforcement and other experts are much better suited to tackle these sweeping public concerns, ATRA contends.

鈥淭he plaintiffs bar certainly is not looking out for the best interest of the public when its filing these lawsuits,鈥� she said.

Lead paint, drugmaker cases targeted

One of the first highly publicized class actions of this kind was in California in 2000, when 10 counties and cities brought a lawsuit against Sherwin Williams, ConAgra Grocery Products Co. and NL Industries, seeking billions of dollars to remove old lead paint from homes.

It took 19 years for the case to resolve. Last year, the former makers of lead paint agreed to a $305 million settlement to mitigate poisoning dangers still present in old housing.

In the past few years, states鈥� attorneys generals have jumped onto class action suits to target drugmakers like Purdue Pharma and Johnson & Johnson鈥檚 Janssen Pharmaceuticals, blaming them for overdose deaths and injuries.

Oklahoma鈥檚 case was the first state lawsuit to go to trial. Johnson & Johnson and its subsidiary Janssen Pharmaceuticals were found liable, and after a bench trial, the judge awarded the state $572 million. In November, the judge whittled that down to $465 million. The state’s attorneys originally asked for more than $17 billion over three decades.

Arizona adopts private attorney contracting transparency and class action reforms

While some states are moving to expand the public nuisance doctrine, others are trying to limit runaway lawsuits.

Arizona in 2011 adopted legislation that established an increased level of transparency in contingency fee contracts the Office of the Attorney General signs with outside counsel. In 2013, the state beefed up the rules surrounding the establishment of classes in class actions, and allowed defendants to immediately appeal class certification decisions.

Business advocacy organizations like the Arizona 麻豆传媒映画 of Commerce, which backed the transparency and class action reforms, say the state鈥檚 legal environment is an essential part of its overall competitiveness.

鈥淲e believe that important public policy issues are best dealt with at the state Legislature or in Congress, as opposed to the courtroom,鈥� said Garrick Taylor, executive vice president for the chamber. 鈥淲e鈥檝e got a very jobs-friendly legal environment in Arizona. A state鈥檚 legal environment is a major contributing factor in its attractiveness to business, so we鈥檒l continue to look for opportunities to make smart reforms.鈥�

Reasons why public policy by litigation is bad for business

Here are a few of the reasons why abusive class action suits harm businesses and consumers, according to the U.S. 麻豆传媒映画 of Commerce鈥檚 Institute for Legal Reform (ILR):

Abusive lawsuits hurt states ability to attract industry

Perceptions of the fairness and reasonableness of a state’s liability system influence business decisions about where to conduct, expand, or constrict operations or sales. According to the , 89 percent of respondents felt that a state’s litigation environment is likely to impact important business decisions at their companies.

The effects of lawsuit abuse extend beyond America’s borders. High liability costs make U.S. businesses less competitive internationally. One study found that liability costs in the U.S. decrease manufacturing cost competitiveness by at least 3.2 percent. These factors have the potential to discourage foreign direct investment by making the U.S. less attractive to foreign capital.

Excessive Tort Costs Affect Everyone

America has the costliest legal system in the world. In fact, in 2016, costs and compensation paid in the U.S. tort system reached $429 billion.That figure was equivalent to 2.3 percent of U.S. gross domestic product, or $3,329 per household. This per-household cost is even higher in certain states.

The U.S. Tort System Is Hugely Inefficient in Compensating Victims

Not only do the high tort costs drain the U.S. economy, America’s litigation addiction provides little redress for injured parties. Economists have found that only 57 percent of the money spent in the tort system in 2016 went to plaintiff compensation. That’s before contingency fees are subtracted.

Lawsuit Abuse Takes a Disproportionate Toll on Small Businesses

A study of tort liability costs for small businesses indicates that litigation costs small businesses in America over $105 billion per year. These small businesses bear 81 percent of business tort liability costs but take in only 22 percent of revenue.

Because small businesses do not often have significant resources to defend themselves in drawn-out, costly litigation, being named in a frivolous lawsuit could mean a small business must close its doors for good. One in three small business owners have been sued or threatened with a lawsuit, according to a national opinion survey of voters by Penn Schoen Berland and Public Opinion Strategies.

The post Expanding nuisance law unfairly targets businesses appeared first on 麻豆传媒映画.