NYC Continues to Be a ‘Judicial Hellhole’—Gov. Hochul Needs to Reform or Step Aside
New York City has now claimed the No. 2 spot on the American Tort Reform Foundation’s annual “Judicial Hellholes” list, with outrageous legal costs soaring to a staggering $89 billion annually.
The city government and private enterprises collectively spend that sizeable amount to defend against baseless lawsuits over questionable injuries and alleged “pain and suffering” claims that would likely be dismissed elsewhere in the country.
This ultimately leads to higher prices for consumers on all fronts, including insurance; job opportunities are lost as businesses relocate out of state (or are never established here); and taxpayers bear the brunt as well.
The majority of the issue lies with state governance: Influenced by contributions from the trial-lawyer lobby, the Legislature has made it increasingly simple to file lawsuits even without legitimate harm or when the plaintiff simply had enough assets to be considered a target.
Moreover, the city’s Democratic leaders, who have significant control over judicial appointments, have contributed to the diminishing credibility of Gotham’s courts.
“The city’s courts serve as a playground for fraudsters and opportunistic trial attorneys, while honest New Yorkers end up footing the bill,” remarks ATRA president Tiger Joyce.
Taxpayers must carry the financial burden, acting as both taxpayers and potential customers and employees, because New York’s status as a “judicial hellhole” severely impacts businesses across the board.
According to Ashley Ranslow from the National Federation of Independent Business, New York’s “liability climate and lawsuit-friendly policies inflate costs and are a significant contributor to businesses and residents relocating to more favorable states.”
- The aspiration of two Suffolk County sisters to own a Dairy Queen turned into a nightmare when an ex-employee filed a lawsuit regarding overtime payments, evolving into a $6 million class-action lawsuit that ended with a settlement of $750,000. A convoluted judicial ruling stipulated that the penalty for the alleged “late payment” equals 100% of the outstanding amount.
- Long Island attorney Spencer Sheehan, known for pursuing food label claims, recently initiated action against Weis Markets, alleging that the company’s generic-brand fruit cup packaging misleads customers by claiming it contains “100% fruit juice.” He has filed hundreds of similar lawsuits against retailers like Walmart, Aldi, Stop & Shop, the Hershey Company, and Target.
- The infamous Scaffold Law compels construction companies to compensate workers injured on duty, even if the injured employee was negligent or intoxicated while working. Four construction firms in the city have filed a racketeering lawsuit against a group of lawyers alleging an organized scheme involving “runners” to stage accidents for high-value fraudulent claims.
Other criminal groups arrange vehicular accidents to generate lawsuits and utilize fake “disabled” individuals to extort businesses over supposed violations of accessibility laws.
The “litigation lending” sector also plays a role by financing lawsuits in advance, often at the expense of the plaintiffs, leaving a substantial portion of any settlement consumed by lenders.
This longstanding issue in the state is worsening: Ambulance chasers, con artists, and their associates are profiting by the billion through this scheme while sharing a portion of their ill-gotten wealth with policymakers who continue to facilitate easier lawsuits.
The most recent concern is the so-called “Grieving Families Act,” currently sitting on Gov. Hochul’s desk, and what is hoped to be a third consecutive veto.
This situation underscores the urgent need for a reform wave in Albany to eliminate the public officials influenced by special interests that exploit citizens.
If voters fail to push back against these fraudsters and exploiters, the system will only become more biased against honest, hardworking individuals.
