New York labeled lawsuit ‘inferno’ in new watchdog report

(The Center Square) — New York is a lawsuit "inferno" according to a justice reform group report, which cited the Democratic-controlled Legislature's "continued pursuit" of liability expansion.

The American Tort Reform Association's latest "heat check" report, released on Thursday, ranked New York among five states that deserve the dubious title of a lawsuit "inferno," including New Hampshire, Missouri, Maryland and Colorado.

The group singled out a perennial proposal pushed by Democratic lawmakers that would expand damages available in wrongful death suits, which it argues would "perpetuate New York’s lawsuit abuse crisis and would make the state an outlier on wrongful death liability."

"New York has cemented itself as a raging inferno of lawsuit abuse due to the trial bar's stranglehold over lawmakers," Tiger Joyce, ATRA's president, said in a statement. "Legislative leaders' inability to stand up to the trial lawyers’ agenda is crippling the state's civil justice system."

In June, New York lawmakers passed an amended version of the Grieving Families Act, which calls for updating the state’s nearly 180-year-old law governing wrongful deaths to allow families to seek emotional damages. Under the current law, they can only sue for financial damages, like lost wages.

Supporters of the legislation argue that the antiquated law prevents grief-stricken families from recovering damages for their emotional suffering, including the survivors of 10 victims killed last year in a mass shooting at the Buffalo supermarket.

Business groups have fiercely opposed the proposal, arguing that expanding the law would impose unfair financial burdens on businesses, hospitals and the insurance industry. They say those added costs would drive up medical insurance costs and liability premiums.

In its report, the tort reform association praised Democratic Gov. Kathy Hochul for vetoing the proposal twice, most recently in January.

"We appreciate Gov. Hochul’s willingness to stand up to the trial bar and protect New Yorkers’ wallets from the devastating costs of liability expansion," Joyce said. "Allowing unlimited damages for nebulous claims like ‘loss of nurturing’ inevitably leads to nuclear verdicts that increase costs across the board."

Joyce said the group is concerned about a slate of bills that it says "could unleash a litigation torrent" by creating new private rights of action for lawsuits. Several bills were filed in the previous session but didn't make it to the governor's desk.

“This barrage of bills represents the pursuit of a litigation free-for-all that could bankrupt companies over minor violations while lining the pockets of a select few personal injury lawyers,” he said. “They exemplify New York’s embrace of profit motives over responsible policymaking.”

New York legal system is consistently ranked among the worst in the nation in the association's annual "Judicial Hellholes" reports. New York, New York City or Albany have been included among those named "Judicial Hellholes" for nearly 15 years, according to the ATRA.