Phoebe Stonbely of the Lawsuit Reform Alliance of New York writes:

“New York’s famously plaintiff-friendly civil justice system is finally receiving the recognition it deserves. The American Tort Reform Foundation released their annual Judicial Hellholes Report today, ranking New York City and Albany as the sixth worst “judicial hellhole” in the country. Previously on the watch list in 2011, the warnings signs weren’t enough to keep Albany and New York City from earning the dubious, if well deserved, distinction of “Judicial Hellhole.”

Last year’s report warned that New York’s job creation rate lagged behind the rest of the country at just one-fifth the average rate. Moreover, the Empire State lost 393,000 jobs to other states. This year’s report once again alerts the decreasing populations in central and western New York and the increasing loss of doctors to “low-tort” states such as Texas.”

To read more click here.

To view the report click here.

Laura Zaepfel, vice president of corporate relations at Uniland Development Co., authored the following op-ed in the Buffalo News:

“One of photographer Charles Ebbets’ most enduring images shows a group of ironworkers perched atop a steel girder, hundreds of feet above New York City, eating lunch. No safety device, no harness, lanyard, safety line, not so much as a hard hat is present. It was 1932 and they sat along a beam that would become part of the 69th floor of the GE Building at Rockefeller Center.

We marvel at the courage and audacity of those men. We also see the reasons for the origination of New York State Labor Law 240/241, now known as the Scaffold Law.

Under the Scaffold Law, contractors, employers and property owners are held 100 percent liable for any gravity-related injury of a worker, even when the worker is at fault. That may have made sense back in 1932, when ironworkers labored in shirt sleeves and worn shoes, but times have changed.”

To read more click here.

Laura Nahmias of The Capitol writes:

“A new coalition eyes reforms to a workers’ safety statute

New York is the last state in the nation to hold employers entirely liable for work-site injuries. A coalition of powerful business groups and tort-reform advocates aims to change that.

This is not the first time tort-reform advocates have tried to change the law, which has been in place in its current incarnation since 1969. But a new coalition that includes the powerful Business Council of New York State could inject new life into negotiations on reform, advocates suggested.

“We have been trying to repeal this law for 30-plus years,” said Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York. “One of the things we’re doing this year is pushing a reform of the law rather than a repeal.”

Under a bill sponsored by Assemblyman Joseph Morelle, the law would change to a “comparative negligence” standard. That means plaintiffs would have to prove they weren’t inebriated and were compliant with the site’s safety regulations in order to hold their employer liable for injuries sustained on site.

The amendment is getting top billing as part of a package of proposed reforms that are supposed to help New York grow its economy, which Gov. Andrew Cuomo has said is his top priority for the rest of his term in office. The coalition members, including Unshackle Upstate, the Business Council and the New York State Association of Realtors, are also part of the Committee to Save New York, which helped push Cuomo’s legislative agenda last spring.”

To read more click here.

The Lawsuit Reform Alliance of New York is drawing attention to a recent report from the Program on Local and Intergovernmental Studies at the University at Albany that outlines the devastating cost of lawsuits on municipalities.

According to the release:

“Data from the study shows that from 2004 to 2009, the financial impact of lawsuit settlements ranged from less than $5,000 in Wyoming County to over $450,000,000 in Nassau County. Wyoming County also paid the smallest amount per capita while Cattaraugus County municipalities paid over $650 per resident to settle lawsuits. And the year to year disparity makes it difficult for municipalities to factor those costs into budgets. In Madison County alone, lawsuit settlements ranged from a total of $1,077 in 2006 to $1.1 million in 2009.

“This study highlights the tremendous negative impact lawsuits have on our communities,” said Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, a non-profit group that advocates against frivolous lawsuits. “This is taxpayer money that municipalities could have used to provide services or improve infrastructure; instead, they are paying millions to settle legal claims.”

To read the full release click here.

To view a copy of the report click here.

Sean Coffey, a lawyer who last year ran unsuccessfully for New York’s Attorney General in the Democratic Primary, has co-founded a firm that will fund lawsuits. This is further proof that relationship between financing firms and lawyers must end.

The LRANY has taken a strong stand against this practice, often called “Non-recourse civil litigation financing”, or more commonly, lawsuit lending.

Such financing companies essentially engage in payday lending for litigation. They seek out consumers who have filed lawsuits and offer to pay them up-front money in exchange for a percentage of whatever award they may later receive in their lawsuit – a percentage which increases over time. Litigation companies prey on vulnerable consumers – people who are often injured and unable to work, with no financial support, and desperate for cash. These companies force the consumer to agree to unfair terms that ultimately result in the consumers giving up a big piece, if not all, of any award they may receive for their injuries.

Read more of the press release that LRANY released earlier today in response to a post in the TU Capitol Confidential.

The following is a Times Union editorial from the Lawsuit Reform Alliance of New York:

“The Washington County home explosion, which killed five people in July, is a horrific tragedy for which no amount of condolences or prayers can ever suffice. Like all of us, my thoughts and prayers go out to the families affected by this tragedy.

Certainly, we all understand wanting to uncover the cause of this incident, both to better understand it and to, if appropriate, place blame on those who may have caused it.

It boggles the mind, though, that reports have indicated that a local law firm is now conducting its own investigation (at the behest of the family) into the cause of the incident. Certainly, there are other law enforcement or forensics professionals with more expertise.

More important, a law firm investigating this tragedy is only looking for one thing: Who should we sue?

In such times of personal and family tragedy, clearly we need objective and professional investigations to help us understand what happened, not a group of “heavy hitters” looking for the next pot of gold.

New York needs to limit the “lawsuit lottery” mentality that runs rampant in our state.”

Please click here for the original editorial.

Thomas Stebbins the executive director of the Albany-based Lawsuit Reform Alliance of New York provides the following op-ed to The Business Council and Lohud.com.

“Most everyone would agree that Gov. Andrew Cuomo has been uniquely successful in getting his agenda passed through a Legislature that was completely dysfunctional not too long ago.

So, what’s next? Reforming New York’s antiquated and stifling legal system has wide support and would provide millions in economic development at no cost to the state. By enacting lawsuit reform the government will stimulate the economy and save money, since municipalities are often the target of lawsuit abuse.

New York is one of the most litigious states in the most litigious country in the world. But there are many small changes the governor can support to help free our state from that dubious distinction.

Take, for example, the state’s rules on trespasser responsibility. New York and California are the only states where if someone gets hurt while trespassing on your property, you are liable. This law only makes sense to lawyers. Changing this would clearly send a message that New York is now working differently. In a recent survey, New York’s litigious climate was one of the top reasons that businesses don’t invest in our state. Now is the time to let employers know things are changing.”

To read the rest of the op-ed click here.

“The passage of a property tax cap is great news for all New Yorkers. It sends a signal to business leaders that the state is prepared to control the cost of government and begin to rebuild our private sector economy,” said Heather Briccetti, acting-president & CEO of The Business Council of New York State, Inc.

The property tax cap has long been a priority of The Business Council. It will contain the growth of local government spending and ultimately make New York more affordable for homeowners and businesses. New York State paid a staggering $48 billion in property taxes in 2010, up five percent from 2009.

The 2009 increase over 2008 was six percent. Businesses paid nearly 44 percent of the total tax levy, $21 billion, by far the largest non-federal tax on private sector employers. The passage of the cap completes a very positive legislative session in which much of Governor Andrew Cuomo’s and The Business Council’s fiscal reform agenda became real.

In addition to getting a property tax cap enacted into law during the 2011 legislative

session, The Business Council worked hard to advance a pro-business agenda in Albany.

As a result of our efforts we were able to proclaim the following victories for business:

• A state budget with no new broad-based taxes

• Caps on future Medicaid and school aid spending

• Improvements in the Excelsior Jobs program

• A new Article X siting law for power generation

• The Recharge NY economic development power program

• An initial local government mandate relief package

• Savings through negotiations with state workforce unions

The Council defeated legislation to expand the state’s Martin Act, with our advocacy efforts culminating in a rare defeat of legislation in the Assembly Codes Committee. The Council also led the fight against significant new energy costs, such as mandated utility purchase of expensive solargenerated electric power.

All of these achievements will lead to an improved business climate in New York.

To read more click on this link  end-of-session-flyer

“Medical malpractice premiums for physicians in different regions of the state can vary as much as five times the amount paid between regions and the difference can exceed $100,000 for some specialties, according to an analysis issued today by Excellus BlueCross BlueShield.” write Leva Doyle in the Ithaca Journal.

“”Medical malpractice rates for upstate New York physicians are considerably less than those in downstate regions and are similar to the amounts paid by physicians in states that report the lowest premium rates in the country,” said Arthur Vercillo, M.D., regional president, Excellus BlueCross BlueShield.”

To read more click here.

Kings County District Attorney Charles Hynes and the Fraud Costs NY coalition today joined forces with Senator James Seward, Senator Martin Golden and Assemblyman Joseph Morelle to urge the State Legislature to reform New York’s no-fault auto
insurance laws.

New Yorkers now pay the fourth highest premiums in the nation for auto insurance, due in large part to an outdated system that is rife with fraud and abuse. In 2010, for the second consecutive year, auto accident fraud cost New Yorkers more than $204 million - a cost that amounts to a ‘Fraud Tax’ which is absorbed by all drivers in the form of higher insurance premiums.

“The ‘fraud industry’ has ballooned into a multi-million dollar a year criminal enterprise. Auto accident fraud not only costs New Yorkers hundreds of millions of dollars annually, but it also poses a considerable threat to public safety,” said District Attorney Hynes. “Time and again, innocent bystanders are injured or killed as a result of staged auto accidents. This is simply unacceptable. We need real reforms that will finally stop the ‘fraud tax’ and allow law enforcement to prosecute these criminals to the fullest extent of the law and keep our streets safe.”

New York State is experiencing an insurance fraud crisis. In fact, by year-end, fraud is expected to have cost New York drivers nearly $1 billion since 2005. Last month, Senator Seward and Assemblyman Morelle introduced legislation that would reduce fraud and abuse and help fix New York’s broken no-fault system.

“New York’s no-fault auto insurance system is broken and needs to be fixed now,” said Senator Seward, Chair of the Senate’s Insurance Committee. “Our bill (S-2186/A-6286) would bring fundamental change by cracking down on criminals who fleece the system for their own personal gain and leave New Yorkers to foot the bill by way of a ‘fraud tax.’ These are tough times for New York, but this is one tax we can all agree must get cut.”

Assemblyman Morelle, Chair of the Assembly’s Insurance Committee, said, “No-fault fraud is costing New Yorkers hundreds of millions of dollars at a time when they’re already paying the highest property taxes in the nation and facing economic uncertainty on so many levels. We have an opportunity to reform the no-fault system, punish those who abuse it, and in the process provide relief for our hard-working families. I urge all my colleagues to support this critical legislation.”

To read more click here.

For More Information Contact: Austin Finan (212) 681-1380