The Case for Combatting Fraud and Ensuring Transparency
As Governor Kathy Hochul prepares to make a pivotal decision regarding the contentious SB485B legislation on her desk, the potential ramifications for New York's consumers and the business community demand urgent attention. This bill, which has already been vetoed twice, seeks to significantly alter the landscape of wrongful death claims in the state. Its passage would not only exacerbate the already rising costs of liability insurance but also create a host of unintended consequences that could destabilize New York's legal and economic environments.
At the heart of this legislation is a proposal designed to expand the range of damages recoverable in wrongful death lawsuits. Specifically, it would permit compensation for emotional suffering, including grief, anguish, and loss of companionship, while also broadening the categories of individuals eligible to file such claims. While the intention to offer justice to mourning families is commendable, the methods proposed raise serious concerns that cannot be overlooked.
The proposed legislation would allow a wider array of claimants to pursue compensation beyond the immediate family members currently recognized under New York law. This significant shift could lead to an influx of lawsuits from additional claimants seeking additional damages. Who is behind this proposed law? The billboard lawyers and plaintiff bar are aggressively advocating for its passage. The potential for additional litigation giving rise to new claimants and expanded damages is troubling, particularly in a jurisdiction where insurers are leaving or otherwise increasing premiums.
Tradesman’s series of RICO cases has exposed the impact of dark money or litigation funding, bad actors in the shape of billboard lawyers and doctors. Reading the pleadings and extensive media coverage makes one wonder why Albany is not focused on making insurance fraud a felony, revoking professional licenses of unethical lawyers and doctors, and compelling the disclosure of litigation funding. This should be the legislative focus, not placating billboard lawyers who are driving legislation aimed at increasing the number of individuals able to bring suits and adding new theories of liability.
Yes, insurance fraud should be a felony. Litigation funding should be disclosed. There are articles dark money funds the series of faked accidents and fraudulent medical procedures. This should be the legislative focus, not expanding claimants and theories of liability.
Moreover, the introduction of compensation for vague emotional damages presents a daunting challenge. Unlike physical injuries, which can be measured and documented, emotional harm is inherently subjective and difficult to quantify. The absence of clear guidelines for juries in determining appropriate compensation for such intangible losses creates an environment ripe for arbitrary verdicts and inflated awards. This unpredictability not only complicates the legal landscape but also fosters an atmosphere of uncertainty that could disincentivize businesses from operating in New York.
Adding to the complexities of this bill is the proposal to retroactively apply its provisions to wrongful death cases dating back to 2021. This retroactive approach would undermine the finality of legal judgments, reopening settled cases for reassessment and potentially re-traumatizing families who have already endured the emotional toll of loss and litigation. Such a move would likely lead to a surge of new claims and appeals, further congesting the court system and eroding public trust in the legal process.
An additional and pressing concern is the impact this legislation would have on liability insurance costs in New York. The state is already facing challenges with increasingly expensive and hard-to-obtain insurance coverage, driven in part by aggressive advertising from billboard lawyers and a plaintiff-friendly legal environment. As the costs of defending against expanded wrongful death claims rise, insurers may be forced to raise premiums or even reevaluate their willingness to operate in the state. This escalation in insurance costs would ultimately be borne by consumers, further straining their financial resources during an already challenging economic climate.
While supporters of the bill argue that it aligns New York with practices in other states, this assertion fails to take into account the stringent limitations many other jurisdictions impose on recoverable damages in wrongful death cases. Typically, these states restrict claims to immediate family members and establish caps on non-economic damages. New York’s proposed legislation lacks these essential safeguards, placing the state at a disadvantage.
Current New York law already provides robust avenues for compensation for both the emotional and physical suffering endured by a decedent prior to death, as well as for the losses experienced by surviving family members. Courts routinely issue substantial verdicts under existing statutes, ensuring that families receive fair compensation without the need for radical changes that could disrupt the established legal framework.
While the desire to support grieving families is a noble pursuit, the proposed legislation fails to balance this objective with the broader implications for New York's legal and economic systems. The potential for escalating legal costs, increased insurance premiums, and a compromised judicial process necessitates a careful reconsideration of this bill. Governor Hochul should firmly reject this legislation, urging lawmakers to instead focus on insurance fraud, litigation funding and unethical lawyers and medical professionals who are bilking the system and causing businesses to defend cases involving faked accidents, very real operations, and a loss of time and resources. The time for thoughtful deliberation is now; Albany must prioritize fairness, predictability, and stability in its legal and economic policies.