ISSUE IN BRIEF:
“Safe Place to Work” Reform
Staff
Contact:
Every sector of
New York's economy, including manufacturers, is adversely affected by
the virtually open ended liability created by the state's current tort
laws.
The cost of doing
business in New York State is being driven up by frivolous lawsuits forcing
companies to pay excessive damages, which are often baseless, irrational,
and unpredictable.
The Business Council,
as a long standing member and active participant of the statewide tort
reform coalition "New Yorkers for Civil Justice Reform", supports a comprehensive
reform program that will restore fairness and balance to the state's
tort system while protecting the rights of injured victims to recover
damages. New York's construction industry faces an insurance crisis,
and one uniquely shortsighted state labor law is largely to blame. Sections
240 and 241 of the Labor Law provide that if a worker is injured on the
job as a result of falling from a height, or being hit with something
that falls from a height, the owner and contractor are absolutely liable.
Under current
law, this holds true even if the worker is at fault for the accident.
For example, the employer is 100% liable even if the employee refused
to use safety equipment, ignored company safety policies, or was impaired
by drugs or alcohol during the time of the accident. New York State is
the only state that imposes such a liability standard.
The Business Council
has adamantly advocated the reform of Section 240 and 241 of the Labor
Law, the so called "scaffolding" law. However, over the years there has
been little movement on proposed legislation designed to amend or repeal
the state's draconian absolute liability standard. The result of which
has lead to insurance premiums spiraling out of control throughout the
state.
Obtaining affordable
general liability insurance coverage has been the single most pressing
business concern for the construction industry for many years. In the
current environment, insurance companies are opting not to provide insurance
to New York State businesses at all. Understandably, this is because
the liability under 240/241 is extremely broad and unforgiving. Those
carriers that remain in New York offer 240/241 protection only with steadily
increasing premiums.
In the December
2004 Court of Appeals decision involving Cahill v. The Triborough Bridge
and Tunnel Authority, the court narrowed the scope of Labor Law 240/241
by reversing a lower courts decision. The decision in Cahill held that
a worker who is provided adequate safety devises and trained on their
use, is not entitled to strict liability protections if he/she decides
to forgo proper protection and is injured as a result. Although this
decision supports our efforts, because of the narrow fact pattern in
the case, the courts ruling does not help bring insurance rates down
and does not create a fairer playing field in New York State. We need
reform.
It should be noted
that these laws have not only affected the construction community, but
manufacturers, commercial property owners, and private home owners who
employ contractors for home improvements as well.
The Business Council
supports adoption of a more sensible and balanced negligence-based standard,
such as A.2946 sponsored in the Assembly by Joe Morelle. Its companion
last year, S.1710 sponsored by Dale Volker, has yet to be reintroduced.
