Emotional Damages in Wrongful Death Suits (S.4006/A.5612) | 2019

May 30th, 2019

AN ACT to amend the estates, powers and trusts law, in relation to payment and distribution of damages in wrongful death actions

S.4006 (Hoylman) / A.5612 (Weinstein)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York opposes this legislation.

Current law allows for family members to recover damages for all economic losses in cases of wrongful death and for pain and suffering prior to death. This legislation expands the categories for recovery to include pain and suffering after the death of a family member, these damages are subjective and will lead to incredibly high monetary awards. The high cost of litigation will lead to many out of court settlements, regardless of the validity of the claim.

This legislation will result in skyrocketing insurance premiums, making it even more expensive to run a business in New York. Analysis conducted by Milliman, Inc., found that medical professional liability, automobile liability, and general liability insurance would increase by as much as $2.2 billion, a 12.6% increase in annual premiums for New York State residents and businesses.

New York State already has the highest medical liability payouts per capita and the highest total of this type of payout in the country, $685,300,000 in 2018. New York also has the highest medical liability premiums in the country, estimates are that this legislation would increase these premiums by 47%.

Unshackle Upstate has consistently advocated for policies that will make New York a better place to do business. The insurance premiums that will result from this legislation will add significant burdens to employers and make New York less economically competitive, without any meaningful benefit to residents. The current law already allows for recovery based on economic loss, this is fair and a sensible formula that can be calculated, this should remain as the law.

For these reasons Unshackle Upstate opposes the enactment of this legislation.