Limit Worker Injury Damages

Title of bill

An act to amend the civil practice law and rules, in relation to damages recoverable when contributory negligence or assump- tion of risk is established in cases involving building construction, demolition and repair work

Purpose or general idea of bill

To apply existing comparative negligence standards to claims filed under article ten of New York State Labor Law.

Summary of specific provisions

Amends CPLR 1411 to apply a standard of comparative negligence with respect to actions for personal injury, property damage or wrongful death brought under article ten of the Labor Law.

Justification

§ 240 (1) of the New York State Labor Law is the last of its kind in the nation. The provision holds property owners and contractors absolutely liable for gravity related injuries that happen on construction work- sites, even if the injured party's own negligence contributed to the accident.

Absolute liability, which is non-existent elsewhere in New York civil law, is not written into Labor Law § 240 (1). Over the years of liti- gation generated by the statute, judges have interpreted that it applies absolute liability.

The courts have held that "contributory negligence is not a defense to a valid Labor Law S 240 (1) claim" (Musselman v Charles A. Gaetano Constr. Corp. 277 AD2d 691). This interpretation of the law provides little defense for property owners, contractors, and subcontractors against a claim, which leads to higher insurance premiums for all construction projects.

The Costs of Labor Law 240 on New York's Economy and Public Infrastruc- ture, a report by the Rockefeller Institute of Government, estimates that the statute costs the State of New York $785 million annually and costs the private sector $1.49 billion in related costs each year.

According to the Port Authority of New York and New Jersey, the liabil- ity costs on one joint New York-New Jersey bridge project are more than doubled on the New York side. The New York City School Construction Authority has seen a massive increase in its Owner Controlled Insurance Program. For upstate, the New York School Boards Association estimates that the law costs school districts $200 million each year. Addi- tionally, in The Effects of New York's Labor Law 240 on Worker Safety, a peer reviewed, "practice ready" paper presented to the Transportation Research Board of the National Academies, researchers at Cornell Univer- sity conclude that New York Labor Law § 240 (1) "increases both fatal and nonfatal construction accidents" at a rate of 670 per year.

CPLR § 1411 provides that "the culpable conduct attributable to the claimant...which caused the damages" will apply liability by that proportion. This bill would amend the CPLR to ensure that, notwithstand- ing any judicial precedent, statute, rule or regulation to the contrary, CPLR § 1411 will apply to any action to recover damages for personal injury, property damage or wrongful death brought under article ten of the Labor Law. This reform would ensure that liability is proportional to fault, and greatly reduce burdensome insurance premiums that impact all construction projects in the state. Most importantly, bringing the liability standard in line with all other aspects of the civil justice system would not weaken the law's safety provisions.

Legislative history

2018 - S.6876: Referred to Judiciary 2017 - S.6876: Referred to Rules

Fiscal implications

Will provide much needed relief to school districts, counties, and local governments by lowering their liability exposure and creating signif- icant savings on all infrastructure construction projects in New York State.

Effective date

Immediately.