Spectrum News: Lawsuit Reform Alliance urges N.Y. wrongful death statute expansion veto

By: Ryan Whalen

After Gov. Kathy Hochul vetoed a bill overhauling New York state's wrongful death statute, the Legislature passed a new version of the bill with modifications to things like the statute of limitations and who can bring claims.

However, Lawsuit Reform Alliance of NY Executive Director Tom Stebbins believes it wasn't nearly enough.

"The Legislature had an opportunity to work with the governor to try to craft a bill that worked for both parties and frankly they did not," Stebbins said.

He said based on an analysis from actuarial firm Milliman, the legislation is still projected to increase medical liability costs by 40% and general liability and auto rates by 11%.

"For the regular person, the cost of their medical services will go up because the medical sector is so affected. The cost of their auto insurance and general liability insurance will go up because the insurance industry is so affected and the cost of their taxes will go up because the municipalities are so affected," Stebbins said.

Prior to vetoing the previous bill, which among other things allows claims for pain and suffering, the governor penned an op-ed citing concerns about unintentional consequences on the economy, small businesses and the health care system. Stebbins, who represents many of those interests, says the Legislature continues to maintain it will have no fiscal impact even as others, including the state Division of Budget, disagree.

"So many public entities are saying this will have a fiscal impact where they're saying there's none so clearly they haven't even read the memos that they have been provided. They need to do their homework and they critically need to get this right the first time," he said.

One important disconnect is with regards to including an exemption for medical malpractice claims. Senate sponsor Brad Hoylman-Sigal last week said it was not currently "on the table" although he also made clear he was open to compromise to avoid another veto.

"We are open to any and all negotiations," Hoylman-Sigal said. "There's no line in the sand from my vantage point as a state legislator. I'm eager to have a discussion with the governor's team and my assembly partners to get this bill across the finish line."

Proponents point out the statute has not been updated in roughly 175 years while 47 other states have made changes. Stebbins said an important distinction is while other states like Illinois, for instance, have also allowed for emotional damages, New York's proposed version is subjective as opposed to specifically limiting it to costs for things like counseling.