(The Center Square) — A coalition of groups is urging New York Gov. Kathy Hochul to veto a slate of proposals to update the state’s liability laws, saying the bills will drive up costs for businesses and consumers.
The bills, which were approved by the Democratic-controlled state Legislature earlier this year, include a proposal that would put foreign corporations doing business in New York under the jurisdiction of the state courts. The groups, including the Business Council of New York, Retail Council of New York State, and Lawsuit Reform Alliance of New York, said the changes would clog the state’s court system with lawsuits.
“That means a company could be dragged into New York courts for a dispute that happened entirely elsewhere — just because it is registered to do business here,” the groups said in a letter to Hochul, urging her to veto the legislation. “Plaintiffs may have a tie to New York, but the underlying disputes could arise anywhere in the country or even the world, making New York an epicenter for forum shopping and costly litigation.”
The groups noted that Hochul vetoed similar “consent to jurisdiction” bills in 2021 and 2023, and said the latest iteration of the legislation “still suffers from the same fundamental flaw.”
“While it limits who can sue New York residents, New York-based entities, and out-of-state businesses registered here, it still allows lawsuits over matters that have nothing to do with New York other than the defendant’s authorization to do business in the state,” they wrote.
Another proposal awaiting Hochul’s action would require injured individuals to wait at least 30 days before accepting a payment, even if they seek a quicker resolution. The coalition said the bill would increase litigation by voiding early settlements, raising legal costs, and delaying claim resolutions.
“The bill also imposes unnecessary and duplicative regulations. New York’s existing attorney disciplinary rules already protect victims from unethical conduct, including a 30-day no-contact rule to prevent the practice of ambulance chasing,” the groups wrote to Hochul.
The groups are also asking Hochul to veto another bill that would require New York courts to interpret state labor laws independently of federal precedents, among other changes. The groups said the legislation would direct judges to “disregard measured and consistent interpretations of law, under the guise of protecting workers, while disproportionately harming small businesses across the state.”
New York state’s legal system is consistently ranked among the worst in the nation in the American Tort Reform Association’s annual “Judicial Hellholes” reports. New York, New York City, or Albany have been included among those named “Judicial Hellholes” for nearly 15 years, according to the association.
Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, said organizations representing every aspect of the state’s economy are calling on Hochul to veto the bills and “protect our wallets and preserve the integrity of New York’s civil justice system.”
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“New Yorkers are already watching costs climb — from housing and medical care to utilities, groceries, and insurance — yet the state legislature seems determined to make life even more expensive,” he said in a statement. “Instead of looking for ways to reduce liability costs and make living, working, and operating a business in New York more affordable, Albany keeps piling on.
“If lawmakers want to know what’s driving New York’s cost crisis, they need to look inward,” Stebbins added.
