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May 8, 2020

Small-business group seeks protection from post-reopening lawsuits

PHOTO | Contributed Markowski: The time for action is now.
By Michael C. Bingham

It is a question on the mind of many small-business owners: if I reopen and one of my employees or customers gets sick, am I liable?

A business group is seeking to provide protections against litigation for these businesses as they prepare to reopen.

A month ago, Gov. Ned Lamont announced an executive order bestowing immunity from lawsuits to health-care facilities and workers on the front lines of the battle to contain the spread of COVID-19 and save lives.

Now, as the Connecticut economy approaches the May 20 date marking the beginning of a phased reopening of businesses in some industries, the National Federation of Independent Business (NFIB) is asking that Lamont, state lawmakers and Connecticut’s congressional delegation work to extend similar protections to all small businesses that want to help lead the economic recovery and put employees back to work.   

“Small businesses will be vulnerable to lawsuits as they open up even if they follow all the required health protocols, so they need protection from liability,” said NFIB Connecticut State Director Andrew E. Markowski. “A single lawsuit, even if the business owner did nothing wrong, can wipe out all they have worked for because they can’t afford the cost of a legal defense.” 

NFIB has put forth a series of policy recommendations for state and federal policymakers regarding small business liability related to COVID-19:

  • Small businesses should be protected from liability pertaining to lawsuits by customers or other third parties, unless the business knowingly failed to develop and implement a reasonable plan for reducing the risk of exposure to coronavirus, and that failure caused the injury.
  • Lawsuits should be limited to parties who experience a physical injury due to COVID-19 exposure serious enough to require hospitalization.
  • As it regards employees, the workers compensation system should be the exclusive way to resolve claims of work-related infection. No separate state or federal tort liability should be allowed. 
  • Fines should be imposed on “unscrupulous” trial attorneys who bring frivolous COVID-19 related lawsuits, the NFIB contends.

One obstacle to pursuing lawsuit protection in time for the May 20 reopening date: Connecticut’s abbreviated legislative session concluded at midnight this Wednesday as the Capitol officially shut down because of the COVID outbreak. Lawmakers will not return to work until a special session reconvenes next month.

“NFIB is trying to raise awareness of this issue because it is something we are hearing about from our members,” explained Markowski. “It is important to address this now since small-business owners face real risks once they reopen.

“While the state legislature is currently adjourned, the governor and/or Congress can certainly act in the near term,” he added. “This is also an important issue for members of [Lamont’s] ‘ReOpen’ Advisory Committee to continue to discuss and consider.”

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