Statement from Tom Stebbins, Executive Director of the Lawsuit Reform Alliance of New York

Response to Governor Cuomo's State of the State Address

ALBANY, NY (01/04/2012)(readMedia)-- "Governor Cuomo's State of the State address today pointed to a number of areas which need to be addressed to help continue the turn around in our economy and restore people's faith in New York. If the Governor wants to deliver jobs, economic development and mandate relief, which he says he does, reforming our legal system provides all three."

  • Jobs: A November 2011 study by the U.S. Chamber of Commerce showed that legal reform would bring 78,000 – 200,000 additional jobs to New York.
  • Economic Development: A recent report by the Pacific Research Institute found that reforming New York's legal system would increase annual output by $17 billion.
  • Mandate Relief: An October 2011 report from the Program on Local and Intergovernmental Studies at the University at Albany catalogued the billions of dollars that local municipalities pay in legal settlements alone.

The Lawsuit Reform Alliance of New York (LRANY), a coalition of New York's large and small employers, farmers, medical professionals and average New Yorkers, urges Governor Cuomo and our legislative leaders to:

  • Revisit the concepts of caps on non-economic damages in medical malpractice lawsuits. Last year, the Medicaid Reform Task Force made this recommendation and Governor Cuomo included it in his budget proposal but it was not acted upon due to the influence of New York's trial lawyer lobby and, this year, the task force failed to submit recommendations by the deadline. This one simple reform – already implemented in many other states, will help revitalize our economy, make health care more affordable and available and send a clear signal that New York is moving forward.
  • Reform New York's Scaffold Law and join the 49 other states which do not impose such draconian restrictions on contractors and property owners. The tremendous costs of the Scaffold Law are passed along to workers, consumers and taxpayers. Since there is virtually no defense against a million-dollar Scaffold Law suit, the cost of general liability insurance in New York is extremely high, and unaffordable to many who need it. This has a significant impact across New York: construction costs go up, fewer workers are hired (with some being laid off), consumers pay higher prices for goods and services, and the economy suffers. Reforming the Scaffold Law would stimulate the economy, create jobs, and reduce workplace injuries. We applaud Governor Cuomo's proposal to invest more in New York's infrastructure but it can be done more efficiently and effectively for New York taxpayers if Scaffold Law reforms are enacted as soon as possible.
  • Bring fairness to the civil justice system so that defendants who are 1% responsible cannot pay 100% of the judgment; enact expert witness disclosure rules so that podiatrists can no longer testify in neurosurgery cases; set standards for e-discovery; prohibit the odious practice of lawsuit lending; and restrict trespassers from suing property owners for injuries incurred while trespassing

Governor Cuomo, one thing is very clear: Real reform of New York must also include lawsuit reform.

We look forward to working with Governor Cuomo and the leadership of both sides of the legislature to implement these crucial reforms."

The Lawsuit Reform Alliance of New York (LRANY) is a broad based coalition of hardworking New York business leaders, farmers, health care professionals and consumers who are committed to changing New York's burdensome and expensive legal system to help create more jobs and energize our State's economy.