New York business groups against legislation tied to wrongful deaths

(The Center Square) – Toward the end of the New York Legislature’s session last month, lawmakers passed a bill to update a 175-year-old law regarding damages in wrongful death lawsuits.

However, more than 30 New York industry groups have penned a letter to Democratic Gov. Kathy Hochul urging her to veto it, claiming it would cause “a disastrous impact on businesses.”

Senate Bill S74 and Assembly Bill A6770 would allow families to pursue compensation for “emotional anguish” in such cases. It passed in both chambers with little opposition.

Speaking before the Assembly on June 2, Assemblymember Helene Weinstein, D-Brooklyn, who sponsored the bill in that chamber, said the bill would bring New York to the same level as 47 other states that allow for damages for grief and loss of affection if there’s been a finding of negligence or another cause.

“We also recognize in this legislation that families have changed,” she said at the time. “There are grandparents raising children. There are cousins who have suffered losses of an aunt. So, we expand the number of individuals who have been impacted by this wrongful death who can recover damages.”

Those damages, though, may be felt by a broad range of businesses and consumers who will see insurance rates increase dramatically, according to the letter the 33 business groups wrote to Hochul. The Center Square received a copy of the letter Wednesday.

The businesses cited a 2021 actuarial review by Milliman, Inc. for the New York Civil Justice Institute that claimed medical liability insurance would rise by almost 40%.

When factoring in other types of liability insurance, residents and businesses would pay up to $2.2 billion more annually, a 12.6% increase, if the bill became law. With liability insurance in New York at already high rates, businesses may have to raise prices, reduce wages or lay off workers if their premiums rise by that much.

They also cited that Hochul vetoed legislation last December that would have required interest on damages awarded in certain judgments.

“As we seek to recover from the far-reaching impacts of the pandemic, we must pursue policies that help, rather than harm, the state’s business community,” the letter stated. “New York cannot afford to adopt new laws that drain our public coffers, discourage entrepreneurship and stifle economic activity.”

Among the organizations signing the letter were Associated Builders and Contractors Empire State, Big I NY, The Business Council of New York, The Lawsuit Reform Alliance of New York, NFIB New York, the New York State Hospitality & Tourism Association, and the Trucking Association of New York.

Disclaimer: This content is distributed by The Center Square