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Monday, May 20, 2024

Congressman asks Cuomo to change N.Y. construction liability law

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Cuomo

ALBANY, N.Y. (Legal Newsline) – Defendants in New York courts have a new tool to fight certain types of lawsuit, while construction companies are again hoping legal reform comes to them.

This week, Gov. Andrew Cuomo signed a bill into law that allows defendants to file anti-SLAPP motions, which can head off lawsuits at an early stage.

SLAPP stands for Strategic Lawsuit Against Public Participation. Basically, defendants use them to argue their alleged conduct is protected by free speech.

New York joins a majority of states that allow anti-SLAPP motions.

“Lawsuit abuse not only detracts from public debate, it can also lead to substantial financial harm. Vindictive litigation is regularly filed against media outlets, whistleblowers, and performing artists," said Tom Stebbins, Lawsuit Reform Alliance of New York Executive Director.

LRANY will again be hoping state lawmakers address the state’s Scaffold Law, a longtime burden on construction projects that is cited each year when the American Tort Reform Association lists its “Judicial Hellholes.”

U.S. Rep. Chris Jacobs on Nov. 9 wrote Cuomo to include reform of the law in his next budget proposal. The Scaffold Law imposes an absolute liability standard for gravity-related injuries on construction sites.

It was enacted more than 130 years ago and increases construction costs by up to 10%, according to LRANY.

Jacobs is hoping to pass a federal law that exempts projects using federal funds from Scaffold Law liability.

“(T)he New York City Transit Authority stated it is in an existential financial crisis,” Jacobs wrote. “Its public liability burden in 2019 was $150 million, much of that due to the Scaffold Law.

“These costs represent hundreds of millions of dollars that could have gone toward improving our schools, repairing the New York City subway, or fixing our roads.”

Jacobs added that the Scaffold Law adds up to $10,000 for the cost of constructing a new home. He wants the absolute liability standard changed to comparative negligence.

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