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Rhode Island Supreme Court Sides With Small Business, Limits Tort Liability for All Business Owners
07/01/2008

CONTACT: Melissa Sharp, 202-314-2068

NFIB Small Business Legal Center Applauds Court's Decision in Major Tort Liability Case

WASHINGTON, D.C. --  Karen Harned, executive director, National Federation of Independent Business Small Business Legal Center, issued the following statement in response to the Rhode Island Supreme Court's decision issued today, State of Rhode Island v. Lead Industries Association, Inc.:

"Today's decision by the Rhode Island Supreme Court is a major victory for all business owners. The court rejected the attempt of trial lawyers to dramatically expand tort liability for business owners by imposing a new 'public nuisance' theory of liability. In this case, trial lawyers were trying to hold paint manufacturers liable for lead paint exposure despite the fact that at the time the lead paint was being made and sold, it was a lawful product. This was a clear attempt by trial lawyers to attack manufacturers for unfortunate consequences far beyond the manufacturers' control. The Rhode Island Supreme Court rightfully rejected this reasoning and reaffirmed that in order to hold a business liable, there must be at minimum a causal connection between actions taken by a business defendant and the harm caused to the claimants."

The NFIB Small Business Legal Center filed a friend of the court brief in this case urging the Rhode Island Supreme Court to reject the public nuisance theory of tort liability.

The NFIB Small Business Legal Center is a 501(c)(3) organization created to protect the rights of America's small business owners by providing advisory material on legal issues and by ensuring that the voice of small business is heard in the nation's courts. The National Federation of Independent Business is the nation's leading small business association, with offices in Washington, D.C., and all 50 state capitals.
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