11/22/2005
Just one lawsuit can force a small business to close its doors forever. That’s why the NFIB Legal Foundation got involved in a New York Court of Appeals case that could have opened the floodgates for asbestos claims to non-employees and other third-party claimants.
The case, Elizabeth Holdampf and John Holdampf v. A.C. & S., Inc., et al., and the Port Authority of New York and New Jersey, involved injuries allegedly sustained by the plaintiff as a result of laundering her husband’s asbestos-contaminated clothes during the 30-year period he worked for New York’s Port Authority.
After the NFIB Legal Foundation filed an amicus brief, the court ruled that an employer or landowner’s duty to provide a safe workplace does not extend beyond employees.
Extension of liability to third-party non-employees is extremely problematic for businesses in general—both large and small. Had the court ruled in favor of the plaintiffs, then spouses and family members who allege that they became sick as a result of materials handled by an employee could have sued the company for damages. This would have opened up small businesses to increased legal fees incurred by defending themselves in these cases. In addition, although this case concerned asbestos, legal experts say the theories advanced in asbestos litigation could easily be extended to silica exposures—a substance found at most construction sites.
“The court’s decision will allow New York small-business owners the freedom to concentrate on things they can control such as their workplace environment, and eliminates the fear of being held liable for unwarranted asbestos claims that they have no control over,” said NFIB Legal Foundation Executive Director Karen Harned.
The victory in New York is just one step in the fight to reform the out-of-control asbestos litigation system that affects small businesses nationwide. Today, there are more than 300,000 pending lawsuits over the issue, and already, more than 70 employers have been bankrupted by an asbestos-related lawsuit against their business.
The NFIB Legal Foundation will continue to fight on behalf of small business against the asbestos-litigation crisis.
