Lawsuit abuse costs Americans an average $720 every year in higher taxes and added costs, threatening the nation's and New York's economy, according to state Assemblyman David G. McDonough who recently joined members of the Assembly Republican conference to announce comprehensive "tort reform" legislation.
Included in the 13-point package of legislation is a measure that would help protect New York consumers' option to lease new vehicles by reforming the state's "vicarious liability" law. Currently, vicarious liability allows accident victims to sue the owner of a vehicle for damages, no matter who was driving. In a lease, the leasing company is held liable, because its name is on the title.
"Auto leasing is on the verge of becoming a thing of the past and health insurance costs are spiraling out of control because of antiquated laws that need to be changed," said McDonough, the ranking Republican on the Assembly Consumer Affairs Committee. "It is vital to our economy that we put an end to lawsuit abuses. But it is also important that we do not threaten the necessary legal protections provided to residents who are truly victims in need of support to get their lives back on track after an accident."
Additional measures to provide relief to consumers, local property taxpayers, doctors, builders, architects and other professionals, include:
* Imposing a $250,000 cap on "pain and suffering," non-economic, damage awards. The court could make exceptions in cases of "gross negligence."
* Overturning the existing legal standard that makes each defendant in a civil case liable for 100 percent of a court award even if they are not entirely at fault, known as joint and several liability.
* Reforming the state's "scaffold law" to allow a worker's negligence or misconduct to be considered as a factor that reduces an employer's liability in injury cases.
* Requiring all civil cases against local cities, towns and villages, including New York City, to be heard in the state Court of Claims, which has the most expertise in handling municipality liability cases.