2008 LEGISLATURE AWASH IN BILLS EXPANDING LIABILITY LAW

Liability tsunami will hit state/local government budgets

as well as vulnerable construction market  

OLYMPIA —An aggressive agenda to expand Washington liability law is washing through the 2008 legislature. At least 30 bills have been introduced in the state House and Senate that will increase liability and adversely affect the budgets of state and local governments, put ill-timed pressure on vulnerable construction markets, and generally raise costs for all Washingtonians.

“It’s like a tsunami of liability expanding bills has washed through Olympia ,” said Dana Childers, Executive Director of the Liability Reform Coalition. “If these bills pass, state and local governments especially will be hard hit, as will the construction industry.”

Childers expressed particular concern about bills expanding the wrongful death statute (ESSB 1873 and ESB 6696), legislation that will adversely affect state and local government budgets in particular. The Association of Washington Cities Risk Management Services, which does risk management for 80 cities, has estimated a fiscal impact of up to an additional $2 million per claim. On behalf of the state, the Attorney General’s office estimates an increase of $1.25 million per claim under this proposal.

Childers noted that a similar New Jersey bill was vetoed last month by Gov. Jon Corzine. Gov. Corzine cited worries that the legislation would adversely impact local government budgets and would hamper his current efforts to attract new business to his state. To Corzine’s credit, he vetoed the bill in the face of powerful opposition from the New Jersey trial lawyer association.

Another bill that is flying through the Washington Legislature is SB 6385, which provides sweeping changes in construction liability, virtually allowing anyone “involved” with the construction of a residence to be named in a lawsuit. Even previous homeowners could be sued under this proposed law.

“The construction industry is under enough pressure,” Childers said. “Legislation that promotes the filing of lawsuits will drive up the cost of housing, which is the last thing our economy needs right now.”

The latest addition to the flood of liability expansion is SB 6614, which provides unlimited punitive damages for any civil action. The bill is set for hearing on February 6. Other liability expansion bills include:

• HB 2602—Creates a new cause of action against employers by requiring employers restore an employee to his or her former position with equivalent pay and benefits following a leave of absence for domestic violence reasons. Attorneys’ fees are recoverable.  
• SB 6382—Allows 500 percent increase in the damages available under Consumer Protection Act. 
• HB 2142—Workplace bullying. Allows unlimited punitive damages for workplace bullying. 
• SB 6782—Discrimination claims. Makes it easier to establish and collect damages on a discrimination claim.
• SB 6840—Expanding Consumer Protection Act. Provides yet another expansion of the CPA, allowing county prosecutors and city attorneys to file lawsuits under the act.
• HB 2945—Creates cause of action for death of companion animal. This bill establishes another way to sue by allowing pet owners to sue and recover damages for emotional distress in the loss of a pet, in addition to any economic damages. And, of course, the law would allow collection of attorneys’ fees on top of all the other damages.

Childers said it is the trial lawyer lobby that triggered this tidal wave of liability expansion. The trial lawyer lobby increased its political spending in recent years by more than 200 percent. Now the trial lawyers are flexing their political muscle in Olympia to move an agenda that will put more and more money in the pockets of trial lawyers while governments, businesses and consumers foot the bill.

“What the trial lawyers forget is that good public policy requires astute balancing of all interests,” Childers said. “This current greedy effort to expand liability puts Washington out of sync with other states, hampers local governments from offering needed services, and puts a chill on our vibrant business climate. There’s nothing balanced about such an agenda.”

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A listing of all liability related bills active in the 2008 session is attached.