Gov. Kathy Hochul has vetoed legislation that critics said would have increased insurance costs for New Yorkers while lining the pockets of trial lawyers.
Hochul rejected bills that, among other things, would have forced out-of-state companies into New York courts and allowed wrongful-death plaintiffs more time to sue and recover more.
New York City is already the No. 2 “Judicial Hellhole,” according to the American Tort Reform Foundation’s annual report that was released this month.
The Partnership for New York City says insurance premiums in New York are 15% higher than the rest of the country, and auto insurance is 52% higher.
“By vetoing another slate of liability-expanding bills, Governor Hochul has once again stood up to the trial lawyer lobby and prioritized the well-being of families and small businesses,” said Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York.
“The Governor has acknowledged that excessive lawsuits are driving up auto insurance costs and contributing to higher premiums across the board. New York’s lawsuit-friendly laws already make this state one of the most expensive places to own a home, drive a car, or operate a business.”
Other measures vetoed included plaintiffs being allowed to recover damages directly from third-party defendants who are typically sued by other defendants for their roles in the alleged injury.
S8186 would have allowed plaintiffs to sue out-of-state companies that registered to sell their products in New York in state courts there. Illinois Gov. JB Pritzker this year signed similar legislation over much opposition, as businesses argue the measure allows lawyers to pick favorable jurisdictions to file their cases.
It’s been happening for years in Pennsylvania, where the state’s “consent-by-registration” statute has been affirmed by the U.S. Supreme Court. As a result, Philadelphia’s mass-tort program features a huge number of out-of-state plaintiffs suing out-of-state companies.
Hochul vetoed that bill and three others. She also signed certain consumer protections in litigation-financing agreements, in which lenders give plaintiffs up-front money in exchange for a percentage of whatever is recovered in their lawsuits.
“If Albany is serious about addressing New York’s rising cost of living, it should focus on reining in the laws that encourage litigation abuse and restoring balance to the state’s notoriously hostile liability system,” Stebbins said.
