May 20, 2020
TO THE MEMBERS OF THE UNITED STATES CONGRESS:

The undersigned chambers of commerce urge Congress to pass timely, temporary and targeted liability relief legislation to provide businesses a safe harbor from unwarranted lawsuits that, left unchecked, will endanger the fight against the pandemic and undermine the safe and orderly return to work for millions of Americans.

From distillers who switched to producing hand sanitizers, to manufacturers that transformed their operations to construct personal protective equipment (PPE) and ventilators, to front line medical professionals treating the afflicted, to pharmaceutical companies that are expediting research into cures, American businesses have rallied to fight the pandemic. During the stay-at-home orders, essential businesses have remained open and innovated in ways that permitted them to continue to provide critical services and supplies. Now millions of other businesses are in the process of reopening, desiring to do so in a safe manner that protects their employees and customers.

This is an unprecedented situation and despite employers’ best efforts to comply with public health guidance, many are concerned that they will be forced to defend themselves against a wave of lawsuits. Their concern is driven by the fact that each day brings news of more lawsuits that have already been filed. That is why Congress should provide a safe harbor that holds truly bad actors accountable, but that protects those employers who are working to follow public health guidance. Specifically, temporary protections should remain in place for the duration of the pandemic crisis and response that cover:

• Businesses that work to follow government guidelines against COVID-19 exposure claims.
• Healthcare providers and facilities on the front lines of the COVID-19 response.
• Manufacturers that repurposed production and distribution to provide PPE, sanitizers, and other needed countermeasures.
• Companies that have donated their stock of supplies to hospitals and medical professionals.
• Public companies that could face securities lawsuits, including those driven largely on stock price drops resulting from the global pandemic under the spurious assertion that management failed to warn investors.

To ensure that we continue to wage war against the pandemic while also safely returning Americans to work, Congress must act without delay.

Sincerely,

Business Council of Alabama
Alaska Chamber
Arizona Chamber of Commerce and Industry
Arkansas State Chamber of Commerce/AIA
California Chamber of Commerce
Colorado Chamber of Commerce
Connecticut Business & Industry Association
DC Chamber of Commerce
Delaware State Chamber of Commerce
Florida Chamber of Commerce
Georgia Chamber of Commerce
Chamber of Commerce of Hawaii
Idaho Association of Commerce & Industry
Illinois Chamber of Commerce
Indiana Chamber of Commerce
Iowa Association of Business and Industry
Kansas Chamber of Commerce & Industry
Kentucky Chamber of Commerce
Louisiana Association of Business and Industry
Maine State Chamber of Commerce
Maryland Chamber of Commerce
Associated Industries of Massachusetts
Michigan Chamber of Commerce
Minnesota Chamber of Commerce
Mississippi Economic Council
Missouri Chamber of Commerce & Industry
Montana Chamber of Commerce
Nebraska Chamber of Commerce & Industry
Las Vegas Metro Chamber of Commerce
Business and Industry Association of New Hampshire
New Jersey Chamber of Commerce
New Mexico Association of Commerce & Industry
The Business Council of New York State
North Carolina Chamber
Greater North Dakota Chamber
Ohio Chamber of Commerce
State Chamber of Oklahoma
Oregon Business and Industry
Pennsylvania Chamber of Business and Industry
Puerto Rico Chamber of Commerce
South Carolina Chamber of Commerce
South Dakota Chamber of Commerce and Industry
Tennessee Chamber of Commerce & Industry
Texas Association of Business
Salt Lake Chamber
Vermont Chamber of Commerce
Virginia Chamber of Commerce
Association of Washington Business
West Virginia Chamber of Commerce
Wisconsin Manufacturers & Commerce
Wyoming State Chamber of Commerce
U.S. Chamber of Commerce

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A leading expert on lawsuit abuse says the U.S. Congress must act quickly to adopt reforms to protect businesses from excessive litigation as society starts to reopen.  

One of the biggest fears businesses have right now is that they will be the target of lawsuits related to COVID-19, Harold Kim, president of the U.S. Chamber of Commerce Institute for Legal Reform told 91ֱ��. 

“I’ve been doing legal reform for nearly 20 years now and I have never seen a groundswell of concern about the liabilities that are going to emerge out of the coronavirus outbreak,” said , who is recognized as a leader in helping to reshape the nation’s litigation climate.    

“It doesn’t really matter if you are a Fortune 500 business or a coffee shop in downtown Phoenix,” he said. “These are real issues and the fear and the concern and the cloud of liability is something that policymakers in Washington — but also throughout the country —  are taking a really close look at because it’s a huge, huge issue as the country starts to reopen and restarts the economy moving forward.”  

Protections needed coast-to-coast 

Litigation reforms are needed to address the unique challenges of COVID-19, said Kim, who applauded Arizona and other states that have passed measures or are moving forward to adopt similar laws to protect industry. On Monday, the Arizona House Rules Committee approved the introduction of a bill to provide protections for businesses and organizations that follow safety guidelines to prevent outbreaks of the disease.  

The best way to move forward is an “all hands on deck” approach to the problem with both the federal government and state legislatures enacting protections to assure liability concerns are covered coast-to-coast, Kim said. 

Liability reforms, however, would not protect companies or employers that engage in recklessness or wilful or gross negligence involving COVID-19, he said. 

“We are encouraging Congress to enact at the federal level a safe harbor for companies to receive liability protections if they follow the CDC and/or state or local guidance when it comes to social distancing; when it comes to protective equipment,” he said. “And it’s important for companies and businesses, and even churches, and childrens’ care centers, and charities, that they know what the standard of care is in moving forward.

“If you have that standard of care then you should not be subject to a negligence lawsuit.”

Four critical areas for protection 

The Institute is recommending four areas for protection in the next federal stimulus package:

Exposure 

As businesses open up, they are vulnerable to lawsuits from customers and employees who may claim they did not take reasonable precautions to safeguard against the virus. Businesses that follow state and federal guidelines for protections would be shielded from these kinds of claims. 

Product liability 

Manufacturers and other businesses that have been taking measures to help fight COVID-19 including producing personal protection equipment (PPE) and hand sanitizers. Individuals or companies who voluntarily provide PPE also would be protected. 

Medical liability 

Front line medical workers who care for coronavirus patients.

Securities class action lawsuits 

Companies that had to take actions in response to the coronavirus would be shielded from class action lawsuits claiming those actions caused stocks prices to drop.

“The things we’re focused on doing in Washington is to look for reforms that are timely because it’s got to happen quickly,” Kim said. “This can’t happen over the course of the next five years. It will be too late. They have to be targeted so that they’re narrow enough and tailored enough to address the solutions and they have to be temporary so that it responds to the COVID-19 crisis.”

Historically, Congress has come together as a bipartisan force to address liability reform after other disasters and major events like 9/11 and Y2k, Kim said. Now, is the time for lawmakers to do it again. 

Americans support protections against COVID-related lawsuits 

Most Americans support the idea of protections for businesses, according to a national released this month by the Institute for Legal Reform. A coalition of Republican, Democrat and Independent voters were polled for the survey. 

More than six in 10 Americans believe that Congress should extend liability protections to employers. 

Other findings reveal that:   

-84 percent of Americans believe essential businesses like grocery stores and pharmacies need protection from lawsuits related to the coronavirus

-82 percent believe that — aside from cases of gross negligence — employers who follow public health guidelines to protect their onsite customers should be shielded from exposure lawsuits

-75 percent agree that makers of hand sanitizers and other cleaning products should be protected as well

Safety guidelines protect businesses and consumers

It’s clear that many Americans support these kinds of protections as long as businesses act responsibly and follow guidelines laid out by the CDC and the states, said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. 

“If this is done right, this is part of the solution in terms of not just economic health but  physical health. By bringing that safe harbor and encouraging good behavior you’re going to have safer workplaces and safer places for customers to visit.”

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