NFIB has been working on legislation that would curb lawsuit abuse and stem liability insurance increases in Michigan – and we need your help to pass them into law! Premises Liability Reform and Third Party Funding Litigation Transparency have both passed the House and are currently awaiting action in the Senate. Click HERE to take action.

Premises Liability Reform

Small business owners may have noticed all of the slip and fall billboards across the state – that is because in 2023, the Michigan Supreme Court, in a clear case of judicial activism, effectively eliminated the “open and obvious” doctrine as a threshold issue in premises liability cases. The “open and obvious” doctrine meant that if an average person of ordinary intelligence could reasonably be expected to discover and avoid a dangerous condition — the property owner was typically not liable for injuries stemming from that condition.  Examples of this include a large pothole in a parking lot, a clearly visible wet floor with warning signs, snow and ice, or a cracked sidewalk.

Michigan is now one of only a handful of states that have completely eliminated “open and obvious” as a bar to duty in premises liability. For decades, this rule served as a clear, objective standard that allowed courts to dismiss meritless claims early in litigation. Without it, judges and juries must now engage in complex factual inquiries about whether an “open and obvious” hazard nonetheless posed an “unreasonable risk of harm.” This subjective standard increases litigation costs and clogs judicial resources with cases that previously would have been resolved swiftly.

Tell your State Senator to pass House Bill 4582, which reinstates the “open and obvious” standard for premises liability HERE!

Third Party Litigation Funding

Third party litigation financing (TPLF), or lawsuit lending, allows outside investors to profit from lawsuits with little transparency or oversight. In Michigan, this practice can drive up costs, fuel excessive litigation, and open the door to foreign influence in our courts.  Legislation has been passed in the House that would bring common sense transparency and accountability to this growing industry. Click HERE to tell Senators to support HB 5281 and protect Michigan consumers and businesses.