Arguing that small business enterprises across Michigan have already been put through the wringer during the pandemic, the National Federation of Independent Business — NFIB — appeared before the House Judiciary Committee today in support of legislation that would protect those same businesses from the threat of unfounded lawsuits related to COVID 19 as they reopen operations in the state.
As one of the state’s leading small business organizations, the NFIB testified today in a bid to protect small business from the threat of unfounded COVID-19 lawsuits as they reengage in the economy. House Bills 6030 – 6032, would provide liability protections to businesses, schools, organizations, and institutions that are doing their best to comply with complicated rules and orders.
NFIB State Director Charlie Owens says, “Michigan’s small businesses who have fought to survive over the course of this pandemic should be able to reopen and get back to work without fear of unnecessary and costly legal battles,” and adds, “This legislation distinguishes actual injuries and legitimate claims from ‘phantom-injury’ lawsuits claiming ‘emotional distress’ or other injuries that cannot be documented to have occurred on the premises of the defendant.”
Owens said that the proposed legislation would shield a business or organization from liability from lawsuits brought by customers, or other third parties, unless the customer or third party proved that the business knowingly failed to take reasonable steps to reduce the risk of COVID-19 to customers and other third parties and that the failure caused the injury. Owens contends, “The legislation would not protect any business or organization that intentionally or recklessly disregards a substantial risk that would increase the likelihood that an individual would be exposed to COVID-19, or intentionally exposes a person to the virus.”
According to Owens, enterprising trial attorneys seeking to take advantage of the current situation with questionable COVID-19 lawsuits would not be a new concept, noting, “An entire cottage industry of litigation harassing small business owners has sprung up from the federal Americans with Disabilities Act and the abuses by the trial bar have been well documented.” Owens tells us, “Many shops and businesses nationwide have been hit by lawsuit settlement demands over alleged minor violations of the ADA by law firms that know a business could go broke trying to prove in court they did not violate the law.”
As he testified in Lansing, Owens says, “We urge the Legislature to work quickly to pass this legislation and we urge the governor to sign it into law as soon as possible so Michigan can get back to work.”
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since being founded in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, you can visit online at: http://nfib.com
