Tort Reform Back on the Table?

In the wake of Assembly Speaker Sheldon Silver’s arrest on fraud and consipracy charges last week, Albany has been thrown into chaos. In the Gotham Gazette, Morgan Penhme identifies five immediate impacts. Number four? Tort reform is back on the table.

Supporters of modifying or eliminating New York State’s Scaffold Law undoubtedly are rejoicing today. The law, which holds contractors and property owners 100 percent liable if a worker falls on the job, is detested by business groups and the real estate industry, which insist it dramatically drives up the cost of building, and fiercely defended by union advocates and trial attorneys, the latter of whom receive a lucrative percentage of the often large settlements that can result from lawsuits that hinge upon the statute. Since he became Speaker in 1994, there has been no more dependable and aggressive ally than Silver of the New York State Trial Lawyers Association, on whose board Weitz & Luxenberg partner Arthur Luxenberg sits.

Last year Gov. Cuomo called the trial lawyers “the single most powerful political force in Albany” in explaining to Crain’s why there was no current path to reforming the Scaffold Law, and that power largely emanates from Silver. With Silver hobbled and his financial ties to law firms centrally related to his indictment, it will be much harder for the Trial Lawyers and related lobbies to rebuff any efforts at reforming the Scaffold Law and other favorite targets of tort reform advocates, like contingency fee limits and trespasser responsibility.

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