Two powerful building and construction groups have accused New York’s unregulated, multibillion-dollar industry of promoting dubious litigation and creating a “crisis” in the real estate world.
Associated Builders and Contractors (ABC-NYS) and the Real Estate Board of New York (REBNY) are reforming “third-party litigation financing” to promise potential plaintiffs a quick cash advance (money they don’t have to pay back). I’m looking for. If you lose, pay it back.
“What it has created is a general liability crisis,” ABC-NYS President Brian Sampson told the Post on Wednesday.
ABC-NYS and REBNY are working with Consumers for Fair Legal Funding to improve the litigation financing industry, which they and other commentators say is rife with fraud and fraud. fighting.
The coalition wants state lawmakers to take control of shady and predatory companies that fund plaintiffs in frivolous lawsuits in exchange for a cut of litigation proceeds, often under laws of up to 200%. You will be charged an extremely high interest rate.
They use New York State’s strict workers’ compensation laws and other statutes to trick workers, often immigrants, into filing lawsuits and then quickly awarding companies and public entities large settlements. They claim that the aim is to pressure the government into resolving the issue.
Subsequent reports revealed that these lender-funded lawsuits could cost Big Apple taxpayers millions of dollars each year in cases that never end up in court. became.
“We’ve created a market for fraudulent claims where an allegedly injured worker lies at work, leaves work, calls 911, and by the time they get to the hospital, they’re already seeing an attorney.” Sampson said.
“There are a lot of people who have been manipulated and neglected, and that compounds the problem that we have with general liability,” Sampson added.
ABC-NYS and REBNY claim that the onslaught of lawsuits has led to higher insurance premiums and, ultimately, higher construction costs.
Sampson said the cost of insuring a project is about 2.5 percent in New Jersey, but as high as 13 percent in New York.
“Lawmakers need to pass legislation this Congress that prevents criminals from taking advantage of defenseless victims,” said Carl Hamm, REBNY General Counsel and Senior Vice President.
“Without reform, insurance costs will continue to rise, making it harder than ever to emerge from the state’s deepening housing crisis.”
The union is supporting law Sponsored by State Sen. Leroy Comrie (D-Queens), it would create regulations for the litigation financing sector, including setting the maximum payout rate that third parties can earn from legal settlements.
The group also notes that under New York’s much-maligned scaffolding law, developers and contractors are fully liable for injuries sustained on the job site, even if the worker is at fault. He pointed out that he owed
Previous attempts to reform scaffolding laws have faced stiff opposition, particularly from the powerful trial lawyers association.
Consumer groups seeking fair legal funding should wide range Other members include the Alliance for Quality Education, the Bodega and Small Business Group, the Business Council, and the New York City Conference of Mayors.
