NEW YORK EYES MUNICIPAL REFORMS:

The New York Senate says its municipal liability reform package (S. 2944, S.5395) would save local governments across New York State $1 billion dollars by limiting judicial awards which proponents claims have spiraled out of control in recent years. From 1988 to 1996, annual tort case filings in New York State grew by almost 60 percent, from 53,104 to 84,089. Last year, the City of New York paid out more than $550 million in settlements and judgments in lawsuits claiming the city negligently caused injuries. According to the Public Policy Institute, in 1996, the ‘tort tax’ cost every taxpayer in New York $800. “Every sector of New York’s economy is affected by the threat of virtually open-ended liability created by the state’s current tort laws and unfortunately municipalities throughout our state face the brunt on this out of control system,” said Senator Dale M. Volker, sponsor of the legislation. The reform package would repeal joint and several liability, placing a $250,000 cap on non-economic damages and extend Court of Claims jurisdiction to localities.